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NEURALSTEM REPORTS SECOND QUARTER FINANCIAL

AND PROVIDES BUSINESS AND CLINICAL UPDATE

GERMANTOWN, MD, August 8, 2014 -- Neuralstem,

Inc. (NYSE MKT: CUR) today reported its financial results for the three months and six months ended June 30, 2014 and provided

a business and clinical update.

"We are pleased to report that 2014

has already seen the company achieve several major milestones. In late July, we completed the last of the surgeries in the NSI-566/ALS

Phase II trial. Each of the patients in the final cohort 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,"

said Karl Johe, PhD, Neuralstem's Chairman and Chief Scientific Officer.

"Our FDA-approved NSI-566 Phase I

trial to treat chronic spinal cord injury (cSCI) is scheduled to commence in the coming weeks at the University of California,

San Diego, School of Medicine, following approval by UCSD's Institutional Review Board during the second quarter,"

said Dr. Johe. "The open-label, ascending-dose study of patients with thoracic spinal cord injuries utilizes the same proprietary

spinal platform and floating cannula developed for the ALS trials, as well as the same NSI-566 spinal cord cells. Patients in this

trial will have an American Spinal Injury Association AIS-A level of impairment (considered to be in complete paralysis) and will

be between one and two years post injury. The trial is generously supported by, and will be conducted in its entirety at, UCSD

under the guidance of Principal Investigator, Joseph Ciacci, MD."

Dr. Johe continued: "During the second

quarter, the company achieved another major milestone when data from the Ib trial of our neurogenic small molecule compound to

treat MDD was presented at two prestigious academic conferences held in June: the American Society of Clinical Psychopharmacology

(ASCP) Annual Meeting, and the International College of Neuropyschopharmacology (CINP) Annual Meeting. The extremely robust NSI-189

Phase Ib data showed statistical significance; and clinically meaningful improvement of both depression and cognitive symptoms

in the active therapy patients, compared to placebo across all clinical measurements. Further, the improvements persisted eight

weeks after 28-day treatment stopped.

"We believe the biomarker data (quantitative

EEG), which was included in the CINP conference presentation, confirms that NSI-189 is affecting key circuitry common in both mood

control and cognition, involving hippocampal neurogenesis and synaptogenesis," added Dr. Johe. "Combined with the significant

clinical improvements of the patients, these findings validate our hypothesis that NSI-189 stimulates the neurogenesis of hippocampal

stem cells, altering the fine structures within the hippocampus in a manner that is long-lasting. We are encouraged that NSI-189

may be affecting the physical structure of the human brain in these depression patients and may modify progression of cognitive

impairment diseases, as well.

"With such positive data supporting

this novel neurogenesis-based platform, we and fellow investigators, including lead study author, Dr. Maurizio Fava, Executive

Vice Chair, Department of Psychiatry, Executive Director, Clinical Trials Network and Institute, Massachusetts General Hospital,

are preparing the Phase II trial application. We plan to launch a multi-site NSI-189/Phase II MDD study late in the first quarter

of 2015. This next clinical trial will test two doses (40mg once a day and 40mg twice a day), along with a randomized, double-blinded,

placebo control group, in approximately 150 patients with confirmed diagnosis of recurrent MDD, with the aim of confirming these

extremely promising results in a larger clinical setting," concluded Dr. Johe.

"We closed the second quarter of

2014 with a cash position of nearly $30 million, which gives a solid foundation to execute on the company's business plan

through mid-2016," said Richard Garr, Neuralstem's President and CEO. "As Neuralstem's products advance

in the clinic in both cell therapy and neurogenic pharmaceuticals, we are building the infrastructure necessary to accelerate our

programs towards NSI-566 and NSI-189 commercialization. To that end, my fellow Directors and I were pleased to welcome Sandy Smith

as a Director during the second quarter. Sandy is the former President, International Group, and Executive Vice President of Genzyme

Corporation. His experience directing global commercialization for one of the world's most successful rare disease companies, where

he was directly responsible for launching 12 new products in diverse therapeutic areas, will prove invaluable as we take the company

to the next level. Sandy's appointment follows that of Catherine Sohn, PharmD, who spearheaded global commercialization at

GlaxoSmithKline, one of the world's largest pharmaceutical companies. We are already benefitting from this level of expertise

and experience being added to Neuralstem's Board. We are extremely pleased to have Sandy's and Cathy's guidance

during this time of pivotal inflection points for our product development in both the Company's cell therapy and small molecule

"During this past quarter, we further

strengthened our global IP portfolio with the issuance of a neurogenic small molecule patent, validated in 34 countries, by the

European Patent Organisation. We also received notice of issuance of the second U.S. patent for the floating spinal cannula surgical

device used in cell therapy. This brings our total patents to 87 issued and 59 pending," said Garr.

"Dr. Johe and I would like to acknowledge

with deep gratitude the brave patients and their families and caregivers who are allowing this breakthrough cell therapy and novel

neurogenic drug advancements in the clinic. We also thank our exceptional collaborators, among them: NSI-189/psychiatric/small

molecule trial consultant, Maurizio Fava, MD, NSI-566/ALS principal investigator, Eva L. Feldman, MD, PhD, and NSI-566/cSCI lead

collaborator, Martin Marsala, MD, PhD. We also want to acknowledge the leading institutions that serve as sites for this ground-breaking

work, including the University of Michigan, Emory University, Massachusetts General, and University of California, San Diego,"

Second Quarter Clinical Program and

In June, Neuralstem's NSI-189/MDD

Phase Ib data was reported at the annual meetings of both the American Society of Clinical Psychopharmacology (ASCP), and the International

College of Neuropyschopharmacology (CINP).

received issuance of EPO Patent # 2470182 (Synthesis of a Neurostimulative Piperazine), that

was validated in 34 countries: Austria, Belgium, Bulgaria, Switzerland, Cyprus, Czech Republic, Germany, Denmark, Estonia, Spain,

Finland, France, Great Britain, Greece, Croatia, Hungary, Ireland, Iceland, Italy, Lithuania, Luxembourg, Latvia, Monaco, Macedonia,

Malta, Netherlands, Norway, Poland, Portugal, Romania, Sweden, Slovenia, Slovakia and Turkey, for a total of 35 European patents.

June, Neuralstem shares were added to the broad-market Russell 3000

Index. Annual reconstitution of Russell's U.S. indexes

captures the 4,000 largest U.S. stocks as of the end of May, ranking them by total market capitalization. Membership in the Russell

3000, which remains in place for one year, brings automatic inclusion in the large-cap Russell 1000

Index or small-cap Russell 2000

Index as well as the appropriate growth and value style indexes.

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.

In May, Neuralstem's President and

CEO, Richard Garr, presented a talk entitled, "Sustainable Growth of Regenerative Medicine: Ensuring Long Term Development

and Patient Access to Transformative Cell Therapies," at the World Stem Cells & Regenerative Medicine Congress, in London,

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 study will enroll 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)

and are between one and two years post injury. NSI-566/cSCI patients will also receive post-surgery immunosuppressive therapy as

tolerated for three months.

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."

In April, the United States Patent Office

issued Patent #8,708,962, the second U.S. patent for the floating spinal cannula and method of use, to which Neuralstem holds exclusive

Second Quarter Financial Results

For the three months ended June 30, 2014,

the Company reported a net loss of approximately $6,751,000 or $0.08 per share, compared with a net loss of approximately $6,252,000