SAN DIEGO, CA--(Marketwired - Aug 15, 2013) - Medistem, Inc. (PINKSHEETS: MEDS), announced today the publication of a patent application entitled "Therapeutic Immune Modulation by Stem Cell Secreted Exosomes."The patent application covers the use of stem cell derived nanoparticles, termed "exosomes", for the treatment of autoimmune conditions, including Type 1 Diabetes, multiple sclerosis, rheumatoid arthritis, and lupus.

"The data presented in the patent application provides additional insight into the mechanism by which our lead product, Endometrial Regenerative Cell (ERC-124), suppresses autoimmunity in animal models of multiple sclerosis and Type 1 diabetes," said Thomas E. Ichim, Ph.D., President and Chief Scientific Officer of Medistem and co-inventor of the patent application. "Our greater understanding of the mechanism of action of ERC-124 on the immune system, will contribute to our planned FDA submission of an Investigational New Drug (IND) to treat Type 1 Diabetes with our product."

The Company has previous published clinical proof of concept data in the in the field of autoimmunity.The Company reported four multiple sclerosis patients treated with ERC-124 in a peer-reviewed publication that can be found at: http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2649897/pdf/1479-5876-7-15.pdf).

"The data and intellectual property presented in the patent application supports the potential of using ERC-124 generated exosomes as an additional product candidate," said Alan J. Lewis, Ph.D., Chief Executive Officer of Medistem. "Given their size, ease of storage, and unique biodistribution, we anticipate ERC-124 derived exosomes may be used to treat burn wounds, radiation sickness, and extracorporeal treatment of organs for transplantation."

A copy of the patent application can be found at: http://medisteminc.com/exosome-patent-application/

About Medistem, Inc.

Medistem, Inc., is developing ERC-124, a universal stem cell product derived from the endometrium.ERC-124 possesses specialized abilities to stimulate new blood vessel formation and can differentiate into lung, liver, heart, brain, bone, cartilage, fat and pancreatic tissue. These unique properties have applications for treatment of critical limb ischemia (CLI), congestive heart failure (CHF), neurodegenerative diseases, liver failure, kidney failure, and diabetes. ERC-124 has been cleared by the FDA to begin a CLI clinical trial in the United States.In January 2012, the Company announced the initiation of its RECOVER-ERC (Non-Revascularizable IschEmic Cardiomyopathy treated with Retrograde COronary Sinus Venous DElivery of Cell TheRapy) a double blind, placebo controlled, clinical trial.This trial is being conducted at the Bakulev Scientific Center for Cardiovascular Surgery, Moscow, Russia.The trial is a 60 patient double blind placebo controlled study evaluating safety and efficacy of ERC-124 in end stage CHF patients.

Certain statements herein may be forward-looking and involve risks and uncertainties.Such forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Medistem, Inc.These can be identified by the use of forwardlooking words, such as "believes", "expects", "may", "intends", "anticipates", "plans", "estimates", or any other analogous or similar expressions intended to identify forwardlooking statements. These forwardlooking statements and estimates as to future performance, estimates, and other statements contained herein regarding matters that are not historical facts, are only predictions and actual events or results may differ materially. We cannot assure or guarantee that any future results described in this presentation will be achieved, and actual results could differ materially as a result of a variety of factors, including the risks associated with the effect of changing economic conditions and other risk factors detailed in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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Medistem Announces Patent Application on Stem Cell Secreted Nanoparticles (Exosomes)