Israeli Government Chief Scientist Office Awards $870,000 Grant to BrainStorm Cell Therapeutics for the Second Consecutive Year

NEW YORK & PETACH TIKVAH, Israel--(BUSINESS WIRE)--BrainStorm Cell Therapeutics Inc. (OTCBB:BCLI), a leading developer of adult stem cell technologies and therapeutics, announced today that the company has been awarded a grant from Israel's prestigious Chief Scientist Office (CSO). The company will receive approximately $870,000 over the remainder of the current fiscal year to fund the continuing development of treatments for ALS and Parkinson’s disease.

This is the second consecutive year that BrainStorm will be receiving this grant from the CSO. In 2007, the company was awarded a grant totaling $340,000. Based on the previous studies conducted by the company, the new extensive research in ALS and the opening of the Company’s animal house, the CSO has more than doubled its grant to the Company. The funding of the grant is based on a $1.8 Million R&D forecast plan over 12 months.

The grant requires that the Company agree to provide a 3% royalty to the Government's Ministry of Trade and Industry program, which offers incentives to high-tech and biotech companies to enhance their research and development. The money was designated by the CSO to further develop BrainStorm’s adult stem cell technologies and therapeutics. The Company’s royalty obligations are capped at the amount of grant proceeds it receives from the CSO.

"In the past month, we have shown proof of concept of our treatment for Parkinson’s disease. We are doing serious and important scientific work, and I’m pleased that the Israeli Government continues to acknowledge this, by funding us for the second year," commented Rami Efrati, CEO of BrainStorm. "With G-d’s help, this grant will enable us to continue our research in order to translate the proof of concept we have into clinical therapies.”

About BrainStorm Cell Therapeutics Inc.

BrainStorm Cell Therapeutics Inc. is an emerging company developing adult stem cell therapeutic products, derived from autologous (self) bone marrow cells, for the treatment of neurodegenerative diseases. The NurOwn(TM) patent pending technology is based on discoveries made by the scientific team led by prominent neurologist Professor Eldad Melamed, Head of Neurology at the Rabin Medical Center, and expert cell biologist Dr. Daniel Offen, Head of the Neuroscience Laboratory at the Felsenstein Medical Research Center of Tel-Aviv University. The technology allows for the differentiation of bone marrow-derived stem cells into functional neurons and astrocytes, as demonstrated in animal models. The Company holds rights to develop and commercialize the technology through an exclusive, worldwide licensing agreement with Ramot at Tel Aviv University Ltd., the technology transfer company of the Tel-Aviv University. The Company's initial focus is on Parkinson ALS and Spinal Cord Injury, although its technology has promise for treating several others diseases including MS, Huntington's disease and stroke.

Safe Harbor Statement

Statements in this announcement other than historical data and information constitute "forward-looking statements" and involve risks and uncertainties that could cause BrainStorm Cell Therapeutics Inc.'s actual results to differ materially from those stated or implied by such forward-looking statements, including BrainStorm's ability to complete its equity financing transactions previously disclosed. The potential risks and uncertainties include, among others, risks associated with BrainStorm Cell Therapeutics Inc.'s limited operating history, history of losses and expectation to incur losses for the foreseeable future; dependence on its license to Ramot's technology; ability, together with its licensor, to adequately protect the NurOwn^TM technology; dependence on key executives and on its scientific consultants; ability to identify, negotiate and successfully implement strategic partnering relationships; ability to complete clinical trials successfully and to obtain required regulatory approvals; competition with companies, some of which have greater resources and experience in developing and obtaining regulatory approval for treatments in BrainStorm Cell Therapeutics Inc.'s market; the limited public trading market for BrainStorm Cell Therapeutics Inc.'s stock which may never develop into an active market; and other factors detailed in BrainStorm Cell Therapeutics Inc.'s annual report on Form 10-KSB, quarterly reports on Form 10-Q, current reports on Form 8-K and other filings with the Securities and Exchange Commission available at http://www.sec.gov/ or by request to the Company. The Company does not undertake any obligation to update forward-looking statements made by us.