Deanne Eagle - Media Relations 917.837.5866 Susan Roush - Investor Relations 818.222.8330

NEURALSTEM REPORTS SECOND QUARTER FINANCIAL

AND PROVIDES BUSINESS AND CLINICAL UPDATE

ROCKVILLE, Md., August 9, 2013 --

Neuralstem, Inc. (NYSE MKT: CUR) today reported its financial results for the three months ended June 30, 2013 and provided a business

and clinical update.

"The focus of the second quarter

was preparation for the start of several trials, both in the U.S. and internationally, in the second half of the year. We expect

to begin our NSI-566 ALS Phase II trial in August or September, at both Emory and the University of Michigan. The trial, with generous

funding from the National Institutes of Health and the ALS Association, will focus on cervical area injections and an increase

in both the number of injections each patient receives, as well as the number of cells in each injection," said Karl Johe,

PhD, Neuralstem's Chairman of the Board and Chief Scientific Officer. "Principal Investigator, Dr. Eva Feldman, presented

Phase I ALS data at two international congresses, this past quarter, focusing on results of early onset patients with no bulbar

symptoms. This group showed a clear slowing of disease progression or actual improvement over a several year span."

"Institutional Review Board approvals

at multiple sites are also expected during this summer for our NSI-566 chronic spinal cord injury trial, approved by the FDA in

January," said Dr. Johe. "This trial, which uses the same cells and procedure proven safe and well-tolerated in the

ALS trial, will treat eight patients with T2-T12 complete paralysis. The primary endpoints of the trial are to demonstrate safety

and toxicity of NSI-566 to treat chronic spinal cord injury. Secondary exploratory endpoints of the Phase I trial include: evaluating

the ability of NSI-566 transplantation to positively affect AIS level, ISNC SCI motor and sensory index scores, bowel and bladder

function, pain, UAB IMR scores, SCIM scores, evoked sensory and motor potentials, and electromyogram (EMG).The trial centers will

be announced when all IRB approvals are obtained."

Dr. Johe continued, "Internationally,

patients for the NSI-566 ischemic stroke Phase I/II trial, in Beijing, have been recruited and we expect to begin dosing patients,

at the world-class BaYi Brain Hospital, in August or September. This trial will test direct injections into the brain of NSI-566

for the first time, via one-time treatments into the stroke area using well-accepted stereotactic intracerebral injection procedures.

The first phase of the stroke trial will enroll up to 18 patients and will be a dose escalation trial to determine the maximum

safe dose. We expect this phase to take seven or eight months to complete, before advancing to Phase II, a multi-site, randomized,

controlled, single-blind study with up to 100 patients, which is designed to evaluate efficacy and safety for clinical proof-of-concept.

Additionally, we have been in active discussions with the Korean FDA regarding our acute spinal cord injury trial, and we expect

to file an IND there later this year. We are also preparing an ALS Phase II IND for a trial in Mexico City, which we expect to

file in the third quarter of this year.

"In this past quarter, scientific

journal, STEM CELL RESEARCH AND THERAPY, reported the most recent study from our collaborators at the UC San Diego School of Medicine,

which demonstrated that intraspinal grafting of NSI-566 during the acute phase could represent a safe and effective treatment that

ameliorates post-injury motor and sensory deficits. Based on the rat data, such cell therapy in humans may provide both qualitative

and quantitative benefits and lead to significant long-term improvement of the structural integrity of a trauma-injured spinal

cord. We look forward to our continued collaboration with Dr. Martin Marsala and his team at UC San Diego, as one of the centers

in our upcoming spinal cord injury trial," Dr. Johe said. "This month, researchers at UC Irvine reported in CELL TRANSPLANTATION

- THE REGENERATIVE MEDICINE JOURNAL that NSI-566 reverses cognitive defect in brain-irradiated rats. The transplanted animals

improved hippocampal spatial memory as well as intact amygdala function, in a model similar to clinical irradiation intervention

given to treat brain cancer patients. In clinical translation, this suggests early cell therapy treatment

could prevent cognitive complications due to an irradiation therapy. We are broadening our neural stem cell therapy programs from

treating motor deficits to treating cognitive deficits, which involve two distinct anatomical circuits, pathogenic mechanisms,

and treatment strategies."

Dr. Johe concluded: "Finally, development

of our novel neurogenic small molecule NSI-189 also advanced in the second quarter. The FDA approved the third and final cohort

in our major depressive disorder Phase Ib trial, and dosing has nearly been completed. We expect data from the trial to be available

in the second half of the year."

"We continued to strengthen our substantial

global IP portfolio in the second quarter. A U.S. patent covering the use of expanded spinal cord stem cells to treat ALS joins

past patent claims covering methods of culturing and treating neurodegenerative conditions with our NSI-566 cells," said

Richard Garr, Neuralstem President and CEO. "Dr. Johe and I would like to extend our continued deep appreciation to our patients,

their families and caregivers for their continued support and dedication to our ALS trial.

Second Quarter Clinical Program and

In April, Neuralstem

received FDA approval to commence the NSI-566 Phase II trial, for ALS, following the excellent safety and tolerability demonstrated

in Phase I. The Phase II dose escalation and safety trial will expand to two centers: Emory University Hospital in Atlanta, Georgia,

where Phase I was completed, and ALS Clinic at the University of Michigan Health System, in Ann Arbor, Michigan, subject to approval

by the Institutional Review Board at each institution.

data on the intraspinal delivery method employed in the NSI-566/ALS Phase I trial was presented at the American Association of

Neurological Surgeons Annual Meeting. "Intraspinal Stem Cell Transplantation in ALS, A Phase I Trial: Cervical Microinjection

Safety Outcomes," presented by Jonathan Patrick Riley, MD, of the Department of Neurological Surgery at Emory University.

In May, Neuralstem's

NSI-566/ALS principal investigator, Eva Feldman, MD, PhD presented updated Phase I trial data results from all 15 patients at the

Romanian Neurological Society Congress in a talk entitled, "Recent Therapeutic Advances in Stem Cell Therapy." Dr.

Feldman reported that six study patients have a stable, very slowly progressing or improved disease course at more than 700-to-approximately-850

days post-surgery. She stated that these patients share two common clinical characteristics: no bulbar features of ALS, a form

of the disease that destroys motor neurons in the corticobulbar area of the brainstem, and they received stem cell transplantation

early in the course of their disease (at an average of two years, one month after symptom-onset). Dr. Feldman is Director of the

A. Alfred Taubman Medical Research Institute and Director of Research of the ALS Clinic at the University of Michigan Health System.

In May, a University of California, San

Diego study reported in STEM CELL RESEARCH AND THERAPY, showed that rats transplanted with NSI-566 cells, three days after a spinal

cord injury at L3 (lumbar 3), showed improvement along several measures of motor function and a reduction of spasticity. The study,

"Amelioration of Motor/Sensory Dysfunction and Spasticity in a Rat Model of Acute Lumbar Spinal Cord Injury by Human Neural

Stem Cell Transplantation," was led by principal investigator, Martin Marsala, MD, of the UCSD School of Medicine. The study

demonstrated that intraspinal grafting of NSI-566 cells during the acute phase of a spinal cord injury could represent a safe and

effective treatment that ameliorates post-injury motor and sensory deficits.

In June, Neuralstem's

NSI-566/ALS principal investigator, Eva Feldman, MD, PhD gave the grand plenary address at the Canadian Neurological Sciences Federation

Annual Congress, which included a presentation of the final Phase I results including new cervical cohort data. The results are

expected to be published in the fall of 2013.

In August, UC Irvine researchers published

a paper in the scientific journal, CELL TRANSPLANTATION - THE REGENERATIVE MEDICINE JOURNAL, which reported that NSI-566

cells reversed cognitive defect and improved cognitive function in rats that had received radiation to the brain. "Transplantation

of Human Fetal-Derived Neural Stem Cells Improves Cognitive Function Following Cranial Irradiation" used an animal model

that is similar to a potential clinical intervention given to treat brain cancer patients.

FDA approved Neuralstem to treat the third and final cohort in the ongoing Phase Ib NSI-189 trial in major depressive disorder

(MDD). Phase Ib is testing the safety of escalating doses of NSI-189 for 28 daily administrations in 24 depressed patients in three

cohorts, and is expected to conclude in 3Q13.

In April, Neuralstem

announced an initiative to investigate feasibility of a NSI-189 trial to treat cognitive and psychiatric impairment of former NFL

players from traumatic brain injury. These injuries can result in long-term and serious loss of cognitive function, depression,

a shorter life span and, as has been reported in some high-profile NFL cases, death by suicide.

In April, Neuralstem

received notice of allowance for patent application 12/404,841, which covers methods of treatment of ALS with expanded spinal cord

stem cells, including NSI-566.

Garr presented at the Annual World Stem Cells and Regenerative Medicine Congress in London.

Second Quarter Financial Results

quarter of 2013, the Company reported a net loss of approximately $6,252,000 or $0.09 per share, compared with a net loss of approximately