Deanne Eagle - Media Relations 917.837.5866 Susan Roush - Investor Relations 818.222.8330 NEURALSTEM ANNOUNCES 2011 FINANCIAL RESULTS

NEURALSTEM ANNOUNCES 2011 FINANCIAL RESULTS,

PROVIDES OPERATIONS UPDATE

Maryland, March 29, 2012 - Neuralstem, Inc. (NYSE Amex: CUR) today provided a financial and operations update

for the year ended December 31, 2011.

"2011 was another year of steady

progress for Neuralstem. U.S. clinical trials progressed in both our cell therapy and pharmaceutical divisions, with consistently

positive and encouraging human safety data. That data covered neural stem cell transplantations into the spinal cord, the use of

our proprietary intraspinal surgical device, and the dosing of our lead neuroregenerative small molecule drug NSI-189. Additionally,

we saw what we believe may be promising early indications of a treatment effect in our ALS trial, which was granted Orphan Drug

designation by the FDA early in the year," said Karl Johe, chairman of the board and chief scientific officer of Neuralstem,

Inc. "In 2012, we expect to complete our Phase I ALS trial, currently in the final cervical stage at Emory University, as

well as file with the FDA to progress to a Phase II trial. Our world-class collaborators at the University of Michigan and Emory

University share our excitement at the prospect of having moved the transplantations to the cervical region of the spinal cord.

We believe our neural stem cells can help preserve or even enhance breathing capacity and quality

of life for patients with this debilitating and terminal disease. We also anticipate FDA approval this year of our IND application

to commence a Phase I safety trial to treat chronic spinal cord injury, using the same neural stem cells and a procedure very similar

to that of our ALS trial, and we plan to file another IND application with the FDA to commence a Phase I safety trial for our neural

stem cell treatment for chronic motor disorders from stroke. Our small molecule NSI-189 Phase Ib trial to treat major depressive

disorder is on schedule to commence soon, and should conclude near the end of the third quarter.

"Internationally, in 2012, we expect

to commence a combined Phase I/II/III clinical trial for chronic motor disorders from stroke at BaYi Brain Hospital in Beijing

through our wholly owned subsidiary, Neuralstem China. We also plan to file an IND for chronic and acute spinal cord injury in

India, where we are currently evaluating potential trial centers and collaborators. We continue to explore opportunities around

the world to commence trials with our neural stem cells for diverse treatments and expect 2012 to bring us closer to demonstrating

the safety and efficacy of both our cell therapies and pharmaceutical applications," concluded Dr. Johe.

Neuralstem's President and CEO Richard

Garr added, "We further strengthened our global intellectual property portfolio with notices of allowance of two important

U.S. Patent Applications covering three additional neurogenic small molecule compounds, in 2011. We also received notices of allowance

for our proprietary surgical spinal platform and floating spinal cannula as well as the method for delivering a therapeutic agent

to a spinal cord target. We believe this breakthrough surgical device, invented by our ALS surgeon, Dr. Nicholas M. Boulis, and

for which Neuralstem holds the exclusive worldwide license, will be the industry standard for such intraspinal procedures.

"We are working with our partner

Sumitomo's Summit Pharmaceuticals International Corporation with the goal to license NSI-189 to a Japanese pharmaceutical

company for development of the Japanese market in 2012," Mr. Garr continued. "We are also making progress in our pursuit

of co-development opportunities for our preclinical library of additional patented novel neuroregenerative compounds.

"Dr. Johe and I would like to extend

deep appreciation to our patients, their families and caregivers, our world-class clinical collaborators, and the Neuralstem team

for enabling positive, breakthrough clinical work which is bringing the world closer to a future of hope for currently incurable

diseases and conditions of the central nervous system," added Garr.

Business Highlights for 2011

Smooth progress of the ground-breaking

ALS Phase I neural stem cell therapy clinical trial continued throughout 2011, progressing from non-ambulatory to ambulatory patients,

and from neural stem cell injections in the lumbar (lower) region to the cervical (upper) region of the spinal cord. The trial

was approved to proceed to the final three-patient cohort receiving lumbar injections in February, and principal investigator Eva

Feldman, M.D., Ph.D. presented the interim safety data at the American Academy of Neurology Annual Meeting in April. Upon conclusion

of the trial's lumbar phase, primary and secondary endpoint data from the 12 transplanted patients was presented by Dr. Feldman

at the American Neurological Association's annual meeting in September. The FDA then approved advancing to the cervical stage

of the trial. The first patient of the final six cervical transplantation Phase I ALS patients received the world's first

neural stem cell injections in the gray matter of the upper spinal cord region in November 2011, at Emory University. It was reported

that the entire 18-patient trial will conclude six months after the final surgery.

The Phase Ia safety trial of Neuralstem's

lead neuroregenerative small molecule compound NSI-189, to treat major depressive disorder (MDD), commenced in February 2011, was

completed in October, and was approved to advance to Phase Ib in December. Phase Ia tested escalating doses of single administration

of the orally administered drug NSI-189 in healthy patients; the Ib trial will test the safety and tolerability of the drug in

three cohorts of depressed patients, each receiving a different dose for 28 daily administrations, and is scheduled to begin in

April 2012. The Phase Ib portion of the NSI-189/MDD trial, which was designed in collaboration

with Maurizio Fava, M.D., of Harvard Medical School and Massachusetts General Hospital, is expected to be completed near the end

of 3Q2012. It was reported that NSI-189, a proprietary new chemical entity discovered by Neuralstem, stimulates new neuron, or

neurogenic, growth in the hippocampus, an area of the brain that is believed to be involved in MDD as well as other diseases and

conditions, such as Alzheimer's disease and post-traumatic stress disorder (PTSD).

In February 2011, Neuralstem received FDA

orphan drug designation for the treatment of ALS with its human spinal cord derived neural stem cells (NSI-566RSC), providing a

seven-year term of market exclusivity upon FDA approval of treatment as well as certain financial and regulatory benefits, including

government grants for conducting clinical trials, waiver of FDA user fees for the submission of a Biologics License Application

for NSI-566RSC, and certain tax credits.

Also in February, former Capital One Financial

Corporation director and business leader Stanley I. Westreich joined Neuralstem's Board of Directors, bringing extensive

experience in business and finance.

In April, the company signed a Memorandum

of Understanding with BaYi Brain Hospital, one of the premier neurological hospitals in China, in Beijing. Under the agreement,

BaYi Brain and Neuralstem were scheduled to jointly prepare a clinical protocol for treatment of chronic motor disorders from ischemic

In June, the Company received notice

of allowance for U.S. Patent Applications 12/939,897 and 12/939,914 entitled: "Compositions to Effect Neuronal Growth,"

which cover three new neurogenic compounds. Subsequently, in October, the Company announced it had received patent allowance for

U.S. Patent 8,030,492, entitled: "Compositions to Effect Neuronal Growth." The claims covered by the patent include

both structure and method claims for inducing neurogenesis and the growth of new neurons, both in-vitro and in-vivo.

In June, the Company received a patent

covering the transplantation of human neural cells for the treatment of neurodegenerative conditions from the Russian Federation.

The claims include methods of culturing the cells as well as treating ALS, spinal cord injuries, traumatic brain injury, multiple

sclerosis, cerebral palsy, epilepsy, Huntington's disease and other conditions through cell transplantation. The Company's

stated goal was to have the broadest worldwide patent coverage for its core technology.

In June, the Company entered into an exclusive

agency licensing agreement with Summit Pharmaceuticals International Corporation, of Tokyo, Japan (SPI), a wholly owned subsidiary

of Sumitomo Corporation Group. Under the agreement, SPI will market development and licensing rights to NSI-189 in Japan.

In August, Neuralstem was selected as the

principal subcontractor under a U.S. Department of Defense contract to develop its human neural stem cell technology for the treatment

of cancerous brain tumors, in collaboration with Principal Investigator John Zhang, MD, PhD, of Loma Linda University, in California.

The contract award was $1.6 million for the first year of the project, of which Neuralstem received $625,000. In this new approach

to oncology, it was reported that the neural stem cells will be engineered to attack brain cancer in three ways: by expressing

an antibody known to suppress tumor growth; by expressing an enzyme that selectively kills tumor cells; and by expressing an antiangiogenic

protein that will starve the tumors by preventing the formation of the blood vessels that feed them.

In October, Neuralstem reported that it

had received a notice of allowance for U.S. Patent Application 12/418,170 pertaining to a "Spinal Platform and Method for

Delivering a Therapeutic Agent to a Spinal Cord Target." Neuralstem is the exclusive worldwide licensee of this device from

the Cleveland Clinic Foundation, where it was developed by ALS trial surgeon Nicholas M. Boulis, MD, formerly of the Cleveland

Clinic, now at Emory University. It was noted that the outstanding safety profile of this device used for injecting therapies into

the spinal cord has been demonstrated with the first 12 patients of the Company's ongoing ALS trial.

Subsequent Events: In February 2012, Neuralstem

announced the closing of a registered direct placement of 5,200,000 shares of common stock at a price