International Stem Cell Corporation (OTCBB: ISCO), http://www.internationalstemcell.com, announced today that the recent presentation entitled "Hepatocyte-like cells derived from patient-specific human parthenogenetic stem cells possess functions of mature human hepatocytes including P450 activity" has been identified as an "AASLD Presidential Poster of Distinction" in the Stem Cells session of The Liver Meeting, the 61st Annual Meeting of the American Association for the Study of Liver Diseases (AASLD), in Boston, MA, one of the most prestigious annual medical and scientific conferences. The abstract of the presentation is published in the peer-reviewed supplement to Hepatology, volume 52, number 4 (SUPPL), Oct. 2010, pg 965A, the official journal of the AASLD.

ISCO's CEO Andrey Semechkin, Ph.D., said, "For our cell biologists to have received this award from the leading society in the U.S. focused on treating liver diseases, demonstrates the high caliber of research being carried out at ISCO, and that human parthenogenetic stem cells and their differentiated derivatives are becoming of greater interest to the medical research community as a potential source of therapeutically valuable cells."

ISCO also announced today the initiation of the first in a series of animal studies designed to demonstrate whether hepatocytes and their progenitors derived from the human parthenogenetic stem cells show any disease modifying activity in vivo.

Dr. Nikolay Turovets, ISCO's Director of Research and Therapeutic Development said, "ISCO's continued focus on therapeutic development is critical to show that hepatocytes derived from stem cells can reproduce missing liver function in a diseased organism. Our first series of experiments are designed to test the ability of our cells to engraft and survive in vivo. A second set of experiments will investigate the functional activity of successfully engrafted cells. Data from these studies will also be used to guide the development of future IND submissions."

In other research news, ISCO announced that a grant in which ISCO is a partner, was recently funded by the Qualified Therapeutic Discovery Project Grants Program created under the healthcare reform legislation enacted last March. The study is led by Paul H. Chen, M.D. to investigate healing after corneal surgery using ISCO's corneal epithelial cells developed by ISCO's wholly-owned subsidiary Lifeline Cell Technology. ISCO's cells, combined with a proprietary surgical device developed by Dr. Chen, may provide safer and better long term results than LASIK. By utilizing ISCO's human corneal cells, ISCO and Dr. Chen believe that cellular enhanced PRK could eventually replace LASIK for many of the hundreds of thousands of patients who require corrective eye surgery.

According to Dr. Chen, "This collaborative work with ISCO could lead to a safer and more effective treatment that hopefully will provide quicker visual recovery, less pain, and an improved refractive correction outcome."

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB)

International Stem Cell Corporation is a California-based biotechnology company focused on therapeutic and research products. ISCO's core technology, parthenogenesis, results in creation of pluripotent human stem cells from unfertilized oocytes (eggs). These proprietary cells avoid ethical issues associated with use or destruction of viable human embryos and, unlike most other major stem cell types, can be immune matched and be a source of therapeutic cells with minimal rejection after transplantation into hundreds of millions of individuals of differing racial groups. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary, Lifeline Cell Technology, and is developing a line of cosmeceutical products via its subsidiary, Lifeline Skin Care. ISCO is advancing novel human stem cell-based therapies where cells have been proven to be efficacious but traditional small molecule and protein therapeutics have not. More information is available on ISCO's website, http://www.internationalstemcell.com.

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FORWARD-LOOKING STATEMENTS

Statements pertaining to anticipated developments and therapeutic applications, the potential benefits of collaborations, affiliations, and other opportunities for the company and its subsidiaries, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as" could", "will," "believes," "plans," "anticipates," "expects," "estimates,") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products and the management of collaborations, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update forward-looking statements.

Key Words: Stem cells, parthenogenesis, biotechnology, hepatocytes, liver disease

International Stem Cell Corporation
Jeffrey D. Janus
Sr. Vice President, Operations
1-760-940-6383
jjanus@intlstemcell.com
or
Nikolay Turovets, Ph.D.
Director of Research and Therapeutic Development
nturovets@intlstemcell.com

As best we can determine, Patrick Cox, who has been and continues to be a strong supporter of our company, was required yesterday by his publisher to cease coverage of our stock and issue a sell recommendation because he has an equity interest in a company with which we do business that could have been perceived as a conflict of interest. That has resulted in numerous negative comments on investor message boards that referred to the sell recommendation without giving the background or a full explanation. As a result, I felt it was important that we put the day's events into proper context. The following are what I believe to be the relevant excerpts from Patrick's article:

As you know, I've been a huge promoter of International Stem Cell Corp.'s (OTCBB: ISCO) parthenogenic stem cell technology. I've not only told you about the company, but I appeared on John Mauldin's podcast show with ISCO board chairman Ken Aldrich about six months ago. Aldrich and Mauldin subsequently became friends and found that their organizations were a perfect fit for marketing ISCO's cosmeceutical skin care product.

John Mauldin asked me to be a part of that organization. We looked hard at Agora Financial's policies as well as applicable SEC regulations and concluded that there would be no conflict of interest because the position gave me no direct interest in ISCO or its stock price....

My publisher, however, has grown increasingly uncomfortable with this arrangement. The reason is not that Agora Financial believes that there would be an actual conflict of interest. Rather, it is that it might be perceived as one by some, in particular SEC lawyers....

My publisher's trading policy's aim, however, is to keep me purely objective and disinterested. This policy is debatable, but I respect it. My only option, therefore, is to issue a sell order or face the wrath of a disappointed spouse.

You can probably guess what that means. I'm going to have to issue a sell order.

Obviously, we can't know for certain if these articles caused the price movement yesterday, but we believe they were a major factor. Moreover, the comments and the response of investors to them are beyond our control, but we do want to reassure all interested parties that there is no information of which we are aware to justify the price fluctuation that occurred yesterday.

I hope this will prove helpful.

Sincerely,

Ken Aldrich

Chairman