NeoStem Announces Pricing of Public Offering for $6,000,000 in Gross Proceeds

NeoStem Announces Pricing of Public Offering for $6,000,000

NEW YORK, March 29, 2012 (GLOBE NEWSWIRE) -- NeoStem, Inc. (NYSE

Amex: NBS) ("NeoStem" or "the Company") a leader in the cell therapy industry, announced

today the pricing of an underwritten public offering of 15,000,000 units at $0.40 per unit. Each unit consists of one share of

common stock and a warrant to purchase one share of common stock with a per share exercise price of $0.51. Maxim Group LLC acted

as sole bookrunner. The Company expects to receive $6,000,000 in gross proceeds, prior to deducting underwriting discounts

and commissions and offering expenses payable by the Company. These funds will be used for working capital purposes, including

research and development of cell therapeutic product candidates, expansion of business units, strategic transactions and other

general corporate purposes. The Company has granted the underwriters a 45-day option to purchase up to an additional 2,250,000

units to cover over-allotments.

The financing is expected to close on or about April 3, 2012,

subject to the satisfaction of customary closing conditions.

This offering is being made by means of a prospectus supplement

and accompanying prospectus. Copies of the final prospectus supplement and accompanying prospectus relating to this offering

may be obtained from the Securities and Exchange Commission's website at http://www.sec.gov or from Maxim Group LLC, 405 Lexington

Avenue, New York, NY 10174 or via telephone at (212) 895-3685.

A shelf registration statement relating to the offering was

previously filed with the Securities and Exchange Commission and became effective on June 13, 2011. This press release is

neither an offer to sell nor a solicitation of an offer to buy any of the Company's securities. No offer, solicitation or

sale will be made in any jurisdiction in which such offer, solicitation or sale is unlawful.

Further information regarding the offering is contained in the

Company's Current Report on Form 8-K to be filed with the Securities and Exchange Commission and which may be accessed at www.sec.gov.

NeoStem, Inc. ("we," "NeoStem" or

the "Company") continues to develop and build on its core capabilities in cell therapy to capitalize on the

paradigm shift that we see occurring in medicine. In particular, we anticipate that cell therapy will have a large role in

the fight against chronic disease and in lessening the economic burden that these diseases pose to modern society. Our

January 2011 acquisition of Progenitor Cell Therapy, LLC ("PCT") provides NeoStem with a foundation in both

manufacturing and regulatory affairs expertise. We believe this expertise, coupled with our existing research capabilities

and collaborations, will allow us to achieve our mission of becoming a premier cell therapy company. Our PCT

subsidiary's manufacturing base is one of the few current Good Manufacturing Practices ("cGMP") facilities

available for contracting in the burgeoning cell therapy industry. Amorcyte, LLC ("Amorcyte"), which we acquired

in October 2011, is developing a cell therapy for the treatment of cardiovascular disease. Amorcyte's lead compound,

AMR-001, represents NeoStem's most clinically advanced therapeutic and has commenced enrollment for a Phase 2 trial to

investigate AMR-001's efficacy in preserving heart function after a heart attack. We also expect to begin a Phase 1

clinical trial by 2013 to investigate AMR-001's utility in arresting the progression of congestive heart failure and

the associated comorbidities of that disease. Athelos Corporation ("Athelos"), which is approximately 80%-owned

by our subsidiary, PCT, is engaged in collaboration with Becton-Dickinson that is exploring the earlier stage

clinical development of a T-cell therapy for autoimmune conditions. In addition, our pre-clinical assets include our

VSELTM Technology platform as well as our MSC (mesenchymal stem cells) product candidate for regenerative

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

Forward-Looking Statements

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 and medical strategy, including with respect to the development

of AMR-001 and other cell therapies and its divestiture of its interest in Suzhou Erye Pharmaceutical Co., Ltd. about which no

assurance can be given. The Company's actual results could differ materially from those anticipated in these forward- looking statements

as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected

in forward-looking statements include the "Risk Factors" described in the Company's Annual Report on Form 10-K filed

with the Securities and Exchange Commission on March 19, 2012 and in the Company's periodic filings with the Securities and Exchange

Commission. The Company's further development is highly dependent on future medical and research developments and market acceptance,

which is outside its control.