Planet Communications - Media Relations: Deanne Eagle 917.837.5866 MDC Group - Investor Relations: Susan Roush 747.222.7012 David Castaneda 414.351.9758

NEURALSTEM REPORTS FIRST QUARTER FINANCIAL

AND PROVIDES BUSINESS AND CLINICAL UPDATE

ROCKVILLE, MD, May 12, 2014 -- Neuralstem,

Inc. (NYSE MKT: CUR) today reported its financial results for the three months ended March 31, 2014 and provided a business and

first quarter of 2014, we continued to advance the NSI-566 cell therapy platform through human clinical trials. We have completed

treatment of the fourth cohort in our ALS Phase II escalating dose trials, in collaboration with our sites at University of Michigan,

Emory and Massachusetts General. Patients 10, 11 and 12 each received a total of 8 million cells (20 bilateral injections of 400,000

cells) into the cervical region of the spinal cord. As our Principal Investigator, Dr. Eva Feldman, noted in her complete Phase

I data analysis this past quarter, we believe that increasing total cell dose, by increasing the number of injections and the number

of cells per injection, may increase both the duration and magnitude of the potential benefit. This is consistent with our hypothesized

neuroprotective mechanism-of-action for this cell therapy," said Karl Johe, PhD, Neuralstem's Chairman of the Board

and Chief Scientific Officer. "We are now treating the fifth and final cohort in the Phase II ALS trial. During May, these

patients will undergo lumbar transplantation and then return for the cervical treatment during a second surgery approximately four

weeks later. Each of these patients will then have received a total of 16 million NSI-566 neural stem cells, through 40 surgical

injections of 400,000 cells per injection. The trial will conclude after an observation period of six months from the last surgery.

Our hope and expectation is that the data from this trial will enable a registration trial that can start in early 2015."

"The second indication for NSI-566 in the U.S. is chronic spinal cord injury (cSCI). This FDA-approved trial will be conducted

in its entirety at the University of California, San Diego, School of Medicine, under the guidance of Principal Investigator, Joseph

Ciacci, MD. The Phase I trial is being made possible, in part, by generous financial support from UCSD. The eight patients will

have AIS-A level impairment, or complete paralysis, between one and two years after injury.

"Turning to Neuralstem's

neurogenic small molecule drug program, we are currently completing our review of the data from our NSI-189 Phase Ib randomized

placebo controlled trial to treat major depressive disorder. While that task is ongoing, the early review is encouraging enough

that we have already committed to filing a Phase II trial application and hope to start that trial later this year," concluded

"2014 is a pivotal year for Neuralstem,"

said Richard Garr, Neuralstem's President & CEO. "We are advancing to new clinical levels on both the small molecule

and cell therapy platforms in multiple indications. Along with our collaborators, we are proud to be pushing for breakthroughs

in the field of neurogenic medicine."

the Company's clinical programs mature, my fellow Directors and I were pleased

to have welcomed Dr. Catherine Sohn and Mr. Sandy Smith to our Board. Dr. Sohn formerly spearheaded global commercialization for

one of the world's largest pharmaceutical companies, and Mr. Smith was directly responsible for launching 12 new products

in diverse therapeutic areas for one of the world's most successful rare disease companies. Their expertise will prove invaluable

as we build the infrastructure necessary to move our company to the next level of development."

First Quarter Clinical Program and Business

In March, a study entitled, "Behavioral

and Histopathological Assessment of Adult Ischemic Rat Brains after Intracerebral Transplantation of NSI-566RSC Cell Lines"

was published in the peer-reviewed journal, PLOS ONE. The study, whose lead author was Cesar V. Borlongan, PhD, Professor, Department

of Neurosurgery, Morsani College of Medicine and Director of University of South Florida's Center of Excellence for Aging

and Brain Repair, showed that ischemic-stroke rats transplanted with NSI-566 in the brain experienced functional improvements.

Furthermore, the grafts survived and differentiated into neurons. The researchers concluded that NSI-566 are potent cell donors

for transplantation therapy to treat paralysis in stroke patients.

In March, the final results from the NSI-566/ALS

Phase I trial were published in the peer-reviewed journal, ANNALS OF NEUROLOGY. In "Intraspinal Neural Stem Cell Transplantation

in Amyotrophic Lateral Sclerosis: Phase I Trial Outcomes," results were updated from Phase I interim data, reported earlier,

to include data from the last six patients in the trial. These six patients were the first to receive cervical stem cell transplants.

The results showed that NSI-566 cells can be safely transplanted in both the lumbar and cervical spinal cord segments, did not

accelerate disease progression, and warrant further study on dosing and therapeutic efficacy.

In March, President and CEO Richard Garr

presented an NSI-566 clinical trials program update at the eighth annual Bio-Europe Spring Conference 2014.

In February, Richard Garr presented an

NSI-566 clinical update at the sixteenth annual BIO CEO & Investor Conference 2014.

In January, Neuralstem announced that the

first patient was treated, on December 27, 2013, in the NSI-566 Phase I/II trial to treat motor deficits from ischemic stroke at

BaYi Brain Hospital in Beijing. The trial is sponsored by Neuralstem's wholly owned subsidiary, Neuralstem China (Suzhou

Sun-Now Biopharmaceutical Co. Ltd.), which was formed to develop Neuralstem's cell therapy products in China. The stroke

motor deficit trial, expected to last two years, is the first in which Neuralstem's cells are being transplanted directly

into the patient's brain.

In January, Neuralstem appointed Catherine

Sohn, Doctor of Pharmacy (Pharm.D.), to its Board of Directors. Dr. Sohn is the former Senior Vice President of Business Development

and Strategic Alliance, GSK Consumer Healthcare, at GlaxoSmithKline, where she spearheaded global commercialization for this $8

billion division and led a series of international licensing deals. Earlier during her 28-year tenure at GlaxoSmithKline, Dr. Sohn

established the U.S. Vaccine Business Unit, leading to the launch of the company's first vaccine in the U.S., which grew

to more than $100 million in sales. She was also involved in the U.S. launch of the company's CNS product, Paxil, which subsequently

grew to more than $1 billion in sales.

In January, Neuralstem closed a $20 million

registered direct offering from leading institutional investors, including dedicated healthcare investors, with proceeds intended

to fund its ongoing clinical trials and for working capital and general corporate purposes.

In January, Richard Garr presented a business

overview and NSI-566 clinical update at the sixth annual 2014 Biotech Showcase.

In April, the FDA-approved NSI-566 Phase

I trial to treat chronic spinal cord injury (cSCI) was approved to commence at the University of California, San Diego, School

of Medicine by its Institutional Review Board. The open-label, ascending-dose study has a one-year completion goal and will enroll

up to eight patients with thoracic spinal cord injuries who have an American Spinal Injury Association AIS-A level of impairment

(patients who are considered to be in complete paralysis) between one and two years post injury. NSI-566/cSCI patients will also

receive post-surgery immunosuppressive therapy as tolerated and physical therapy for three months. The trial study period will

end six months post-surgery for each patient.

In April, NSI-566/ALS Principal Investigator,

Eva Feldman, PhD, MD, presented published Phase I data at the Keystone Symposia, "Engineering Cell Fate and Function."

Dr. Feldman took part in a workshop, organized in collaboration with California Institute for Regenerative Medicine, called "Clinical

Progress for Stem Cell Therapies. Dr. Feldman also provided the first public update on Phase II of the trial.

In May, Sandford Drexel Smith was appointed

to Neuralstem's Board of Directors. Mr. Smith is the former President, International Group, and Executive Vice President

of Genzyme Corporation. As President of the International Group, Mr. Smith opened markets in Latin America, China, India, Russia

and Eastern Europe, establishing more than 45 offices worldwide, and was responsible for the launch of 12 new products in diverse

therapeutic areas. He grew Genzyme's international business to $3.1 billion, or 60% of the company's total revenues.

In 2011, Genzyme was acquired by Sanofi, one of the world's largest healthcare companies.

First Quarter Financial Results

For the first quarter of 2014, the Company

reported a net loss of approximately $5,919,000 or $0.07 per share, compared with a net loss of approximately $3,590,000 or $0.05

per share, for the comparable 2013 period. The increase in net loss was primarily comprised of a $2,286,000 increase in operating

loss due to a non-cash charge of approximately $2,018,000 related to a consultant achieving

a performance based milestone which resulted in a term extension of certain common stock purchase warrants and an increase of approximately

$227,000 in legal and professional fees, partially offset by a $233,000 decrease in project and lab expenses related to certain

projects not continuing into the first quarter of 2014 and the cost of certain studies in 2014 being subsidized by third parties.

The net loss in the first quarter of 2014

also included other expenses comprised of approximately $432,000 in interest expense related to our long term debt and a $334,000

non-cash expense related to the change in the fair value of the our derivative instruments. The first quarter of 2013 included

a $667,000 non-cash expense related to the modification of certain stock purchase warrants.

equivalents and short-term investments on hand was approximately $33,343,000 at March 31, 2014, compared to approximately $16,846,000