Progenitor Cell Therapy, and Hackensack University Medical Center Enter Into a Cell Processing and Storage Services Agreement

Allendale, N.J. and Hackensack, N.J., Jan. 7, 2013 -- NeoStem, Inc. (NYSE MKT:NBS) and its subsidiary, Progenitor Cell Therapy, LLC ("PCT"), an internationally recognized contract development and manufacturing organization (CDMO), and Hackensack University Medical Center ("HackensackUMC"), part of the Hackensack University Health Network and a hub of healthcare for the Northern New Jersey and New York metropolitan areas, announced today that HackensackUMC has renewed its engagement of PCT's services for processing and storage of a variety of cell types used therapeutically by the hospital.

HackensackUMC will use the services of PCT for processing and storage services for peripheral blood progenitor cells, donor leukocytes, bone marrow and cord blood, as well as for further assays, storage, retrieval and transportation. HackensackUMC was recently voted one of the best hospitals by U.S. News and World Report 2012-2013, placing it fourth out of the 184 hospitals in the New York Metropolitan Area and number 1 in New Jersey. HackensackUMC has grown to be a preeminent cancer treatment facility with one of the largest blood and bone marrow transplant programs in the world.

"We are very excited to continue our relationship with HackensackUMC, whose engagement of PCT began in 1999, thirteen years ago," said Robert A. Preti, PhD, President and Chief Scientific Officer of PCT. "Our agreement with HackensackUMC enables us to continue to play a vital part in patient care for cancers and other hematologic disorders, and to continue to provide cell products to our entire client base. Since its founding, PCT has provided cell therapy products for infusion into over 6,000 patients."

"Our agreement with PCT provides us with a high quality and cost-effective solution to our cell processing and storage needs and supports a range of cell therapy based research and development programs," said Robert C. Garrett, President and Chief Executive Officer of HackensackUMC. Dr. Andre Goy, Chairman and Director of the John Theurer Cancer Center at HackensackUMC, added, "PCT's platform, which is designed under strict cGMP ("Current Good Manufacturing Practices") guidelines, ensures that our research activities will be conducted using the gold standard of our industry. PCT's recognized competencies in cell and tissue processing and storage, as well as cell transportation, make it an ideally suited partner for HackensackUMC."

Dr. Robin L. Smith, NeoStem's Chairman and Chief Executive Officer, stated that, "Our continued partnership with an institution of the calibre of HackensackUMC is a validation of our entire company's focus and commitment to the support and development of the emerging cell therapy industry, as we bring innovative therapies to patients suffering from cancers, autoimmune conditions and other disorders. PCT has shown strong revenue growth in 2012 with an increase of over 90% from the year prior. PCT's exceptional client retention rate validates the management's commitment to Quality and Services as we look forward to future growth with our clients outside of the United States."

About Hackensack University Medical Center

HackensackUMC, a non-profit teaching and research hospital located in Bergen County, New Jersey, is the largest provider of inpatient and outpatient services in the state, and home to the only Level II Trauma Center in the county. This 775-bed facility has gone beyond traditional thinking by creating an entire campus of care, including: the Heart & Vascular Hospital, the John Theurer Cancer Center, the Joseph M. Sanzari Children's Hospital, and the Donna A. Sanzari Women's Hospital. As a result of using science and creativity to push medicine further, HackensackUMC was listed as the number one hospital in New Jersey and one of the top four New York metro area hospitals by the U.S. News & World Report, and has received nine national rankings in: Cancer; Cardiology & Heart Surgery; Ear, Nose & Throat; Gastroenterology; Geriatrics; Neurology & Neurosurgery; Orthopedics; Urology; and the Joseph M. Sanzari Children's Hospital ranked as one of the Top 25 Best Children's Hospitals for Neurology and Neurosurgery in the 2012-13 Best Children's Hospitals list. The medical center has also been named one of the Truven Health Analytics 100 Top Hospitals® and one of America's 50 Best Hospitals by HealthGrades®. It is listed among the Leapfrog Top Hospitals List, received 19 Gold Seals of Approval™ by the Joint Commission, and is listed as one of the 50 Best Hospitals in America by Becker's Hospital Review. It was the first hospital in New Jersey and second in the nation to become a Magnet® recognized hospital for nursing excellence. The medical center is the Hometown Hospital of the New York Giants and the New York Red Bulls, and remains committed to its community through fundraising and community events. To learn more about one of the nation's 50 best hospitals, visit: www.HackensackUMC.org.

About NeoStem, Inc.

NeoStem continues to develop and build on its core capabilities in cell therapy, capitalizing on the paradigm shift occurring in medicine. We anticipate that cell therapy will have a significant role in the fight against chronic disease and in lessening the economic burden that these diseases pose to modern society. We are emerging as a technology and market leading company in this fast developing cell therapy industry. Our multi-faceted business strategy combines a state-of-the-art contract development and manufacturing subsidiary, PCT, with a medically important cell therapy product development program, enabling near and long-term revenue growth opportunities. We believe that, with our expertise and research capabilities and collaborations, we will achieve our mission of becoming a premier cell therapy company.

Our contract development and manufacturing service business supports the development of proprietary cell therapy products. NeoStem's most clinically advanced therapeutic, AMR-001, is being developed at Amorcyte, LLC ("Amorcyte"), which we acquired in October 2011. Amorcyte is developing a cell therapy for the treatment of cardiovascular disease and is enrolling patients in a Phase 2 trial to investigate AMR-001's efficacy in preserving heart function after a heart attack. Athelos Corporation ("Athelos"), which is 80%-owned by our subsidiary, PCT, is collaborating with Becton-Dickinson in the early clinical exploration of a T-cell therapy for autoimmune conditions. In addition, pre-clinical assets include our VSEL™ Technology platform as well as our mesenchymal stem cell product candidate for regenerative medicine. Our service business and pipeline of proprietary cell therapy products work in concert to create a competitive advantage that we believe is unique to the biotechnology and pharmaceutical industries. Supported by an experienced scientific and business management team and a substantial intellectual property estate, we are well positioned to succeed.

For more information on NeoStem, please visit www.neostem.com.

Forward-Looking Statements for NeoStem, Inc.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. Forward-looking statements include statements herein with respect to the successful execution of the Company's business strategy, including with respect to the Company's or its partners' successful development of AMR-001 and other cell therapeutics, the size of the market for such products, its competitive position in such markets, the Company's ability to successfully penetrate such markets and the market for its contract development and manufacturing business, and the efficacy of protection from its patent portfolio, as well as the future of the cell therapeutics industry in general, including the rate at which such industry may grow. The Company's actual results could differ materially from those anticipated in these forward- looking statements as a result of various factors, including but not limited to matters described under the "Risk Factors" in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 20, 2012 and in the Company's other periodic filings with the Securities and Exchange Commission, all of which are available on its website. The Company does not undertake to update its forward-looking statements. The Company's further development is highly dependent on future medical and research developments and market acceptance, which is outside its control.