Medistem Suspends Filing Reports With Securities and Exchange Commission

Decision Expected to Preserve Capital and Focus Efforts on Core Research and Development

• Press Release
• Source: Medistem Inc.
• On Tuesday November 25, 2008, 6:02 pm EST

SAN DIEGO, CA and PHOENIX, AZ--(MARKET WIRE)--Nov 25, 2008 -- Medistem Inc. (OTC BB:MEDS.OB - News) announced today that effective immediately it will cease filing reports with the Securities and Exchange Commission.

Related Quotes

Symbol	Price	Change
MEDS.PK	0.25	0.00

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The company expects to benefit from this decision through significant savings on legal, accounting, compliance and other costs associated with being a reporting company while simultaneously allowing it to focus on its core business activities, particularly its scientific research and development. Medistem stated that its management has determined that the company currently is deriving minimal benefits from being a reporting company due to low trading volume and a depressed market price that management believes does not accurately reflect the true value of the company's business. The company noted that preparing and filing SEC reports, as well as investor relations activities, required a disproportionate amount of financial resources and management effort that now can be focused solely on scientific research and development.

By ceasing to file reports, the company's common stock will no longer qualify for trading on the OTCBB. However, Medistem expects that its common stock will continue to trade on the Pink Sheet system.

"In the wake of recent economic events and the state of capital markets, preservation of capital is critical to Medistem's survival," said Thomas Ichim, CEO of Medistem. "By reducing our compliance costs, we can redirect our available cash resources and management attention towards accelerating our scientific research and development activities. This will hasten our ability to develop and commercialize our ERC product for use in the treatment of inflammatory and degenerative diseases. We believe this will give us more time in which the financial markets can recover before we initiate our next capital raise. Ideally, we will be able to obtain more capital at a better valuation when our science has been more fully developed, which will result in less dilution to existing shareholders."

About Medistem Inc.

Medistem Inc. is a biotechnology company founded to develop and commercialize technologies related to adult stem cell extraction, manipulation, and use for treating inflammatory and degenerative diseases. The company's lead product, the endometrial regenerative cell (ERC), is a "universal donor" stem cell derived from the menstrual blood that possesses the ability to differentiate into nine tissue types, produce large quantities of growth factors, and a large proliferative capacity. A peer reviewed publication describing this novel cell type may be found at http://www.translational-medicine.com/content/5/1/57. The company is currently focusing on use of endometrial regenerative cells for treatment of critical limb ischemia, an advanced form of peripheral artery disease.

Cautionary Statement

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of our securities. This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking information.

Factors which may cause actual results to differ from our forward-looking statements are discussed in our Form 10-K for the year ended December 31, 2007 as filed with the Securities and Exchange Commission.

     Contact:
      
     For further information on Medistem Inc., please visit
     http://www.medisteminc.com or contact:
      
     Thomas Ichim, PhD
     CEO
     9255 Towne Center Drive
     Suite 450
     San Diego, CA 92122
     1-877-ERC-STEM