Litigation Victory Upholds PharmaStem’s Pioneering Stem Cell Patents

MENLO PARK, CALIF. (November 4, 2003) – In an important victory for the growing field of therapeutic use of umbilical cord stem cells, PharmaStem Therapeutics, Inc. and Perkins Coie LLP announced today that they had won a major patent infringement lawsuit in Delaware.

The Delaware jury unanimously found that PharmaStem's pioneering patents were valid and enforceable and that the four defendants, ViaCell, Inc., Cryo-Cell International, CorCell, Inc. and CBR Systems, Inc., had willfully infringed patents covering the technology for collecting, cryopreserving and storing stem cells derived from umbilical cord and placental blood for future therapeutic use. These stem cells found in umbilical cord and placental blood are replacing bone marrow as a transplant source for treating cancer and other diseases.

"A jury finding of willful infringement is extremely rare and represents a compelling validation of PharmaStem's claims," said Paul Andre of Perkins Coie, lead attorney on the case. "The legal determination that the patents are valid and enforceable further confirms that the inventors made an innovative scientific contribution, one that the scientific community has recognized for over fifteen years."

The defendants are ordered to pay in excess of $7 million in past damages. The finding of willful infringement permits the Court to treble the damages and award attorneys’ fees to PharmaStem.

"This verdict is a resounding affirmation of PharmaStem's strong intellectual property position," said CEO Nicholas Didier. "Even before this verdict, PharmaStem had three license agreements with leading industry participants. Now, the combination of the jury’s decision and three additional pioneering patents issued to PharmaStem since the inception of the lawsuit leads me to expect that we will soon reach favorable resolution with all industry participants so that we can focus on growing the industry together. A number of parties have already come forward for discussions."

About PharmaStem (www.pharmastem.com): PharmaStem is the pioneer in the development and implementation of cord blood preservation and its therapeutic use.