Slide 1: NeoStem, Inc. Investor Presentation March 2011
NEOSTEM, INC. (“NBS”) Investor Presentation March 2011
Slide 2: Forward-Looking Statements
Forward-Looking Statements Included in this presentation are “forward-locking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as well as historical information. Such forward-looking statements involve known and unknown risks, uncertainties and other factors wh
Slide 3: About NeoStem
sy § About NeoStem NeoStem is Positioned to be a leader in the Paradigm Shift to Cell-Based Therapeutics
Slide 4: About NeoStem
About NeoStem NeoStem is accelerating proprietary cellular therapies and becoming a single source for collection, storage, manufacturing, therapeutic development and transport of cells for cell-based medicine and regenerative science globally. As an international biopharmaceutical company, it has ad
Slide 5: Progenitor Cell Therapy: An Enabling Transaction
Progenitor Cell Therapy: An Enabling Transaction In January 2011, NeoStem completed the equity-based acquisition of Progenitor Cell Therapy (PCT) Which Added Manufacturing, Regulatory Expertise and a Therapeutics Pipeline 10 years of e PCT is a World Class Cell Based experience Manufacturing Operati
Slide 6: Patent & Patent Applications
Patent & Patent Applications NeoStem aggressively is seeking international patent protection for its own technologies. Additionally, NeoStem sponsors research activities at various academic institutions pursuant to which it is given the right to license exclusively certain inventions resulting from
Slide 7: VSEL Technology Overview
VSEL™ Technology Overview VSEL™ Technology is NeoStem’s proprietary adult stem cell technolog' with exclusive worldwide license from the University of Louisville e Isolated from a patients own bone marrow, peripheral blood, or cord blood L , VSEL™ e¢ Demonstrates pluripotency and somatic imprinting
Slide 8: VSEL Technology Clinical Studies
VSEL™ Technology Clinical Studies VSEL mobilization is the body's natural reaction to acute injury Mobilization of Bone Marrow-Derived Oct-4+ SSEA-4+Very Small Embryonic-Like Stem Cells in Patients Acute Myocardial Infarction Acute Stroke control PSYINC m2sn 3° day after stroke 7" day 10 4 P<0.001 v
Slide 9: Adult stem cell wound treatment results
Double barreled syringe Back wound after surgery Spraying adult stem to spray adult stem cells. to Remove skin cancer cells into the wound é. bi vl as as Baseline During 3° Application Almost Healed at 3 months Wound completely healed after 7 months ‘Complete Closure after 6 months +NeoStem awarded
Slide 10: Goals of US Cell Therapy Business
ES Goals of US Cell Therapy Business Grow revenues from process and assay development, manipulation, cryopreservation, storage, manufacturing and distribution Expand contract cGMP manufacturing for other cell therapy centers, academic institutions and companies using China facility in development De
Slide 11: Validating Partnerships
Validating Partnerships Industry Participation in Therapeutics with industry leaders Governmental ° NeoStem to receive $700,000 from the U.S. Army's Medical Research and Materiel Command to advance adult stem cell therapies in treating traumatic wounds Academic Collaborators Sponsored research agree
Slide 12: Developing cellular therapy platform in China
Goal: Developing cellular therapy platform in China to generate revenues today and serve as a vehicle for expansion in the future Proprietary Technology c is Used Currently 101 Orthopedics | MSCs VSELs™ Technology | Wound | MSCs VSELs™ Technology Cosmetic/Skin Rejuvenatior | MSCs VSELs™ Technology F
Slide 13: Progressive Stem Cell Environment in China
Progressive Stem Cell Environment in China ¢ Favorable clinical and regulatory environment - Greater receptivity toward advanced therapeutics such as stem cell therapy ~ Actively seeking innovative technologies and therapies from the U.S. ¢ Large and rapidly growing Chinese health care market going
Slide 14: Acquired 51% of Chinese generic therapeutics company, Suzhou Erye
Acquired 51% of Chinese generic therapeutics company, Suzhou Erye() Location Suzhou China Suzhou Erye + Vertically-integrated manufacturer of generic antibiotic products and APIs with extensive distribution throughout China - 8 <GMP-certified production lines - Extensive distribution network through
Slide 15: Goals of Suzhou Erye
Goals of Suzhou Erye Complete relocation to allow doubling of manufacturing capacity; increase revenues by eliminating inefficiencies associated with transitioning to new facility Commercialize pipeline drugs Continue to develop distribution channels domestically as well as the export of API’s busin
Slide 16: NeoStem's China Affiliated Entities
NeoStem’s China Affiliated Entities 1.) Network of Hospitals delivering NeoStem’s Asia licensed Adult Stem Cell technology for Orthopedics using MSCs 1.) Wendeng Hospital — Launched June 2010 2.) Shijianzhuag - Third Hospital signed December 2010 3.) A third hospital in Tianjin expected to sign earl
Slide 17: China Market Strategy
China Market Strategy ° Leverage Suzhou Erye platform to capture Chinese market - established operational presence in China with $70 million in Projected annualized 2010 revenue for its therapeutics business ¢ Accelerate growth of Suzhou Erye -Doubling manufacturing capacity -Addition of new drugs t
Slide 18: Summary of NeoStem Business Strategy
Summary of NeoStem Business Strategy Integrated Components Create the Foundations for Therapeutics ¢ PCT is an Industry Leader in Cell Based Manufacturing - Pioneered the Manufacturing of Dendreon’s Provenge - Working with other Industry Leaders - Currently break even business poised to leverage vol
Slide 19: Key Investment Highlights
Key Investment Highlights NeoStem is Diversified with Multiple Platforms Positioned to Capture the Paradigm Shift to Cell based Medicine Differentiated Cell Therapeutics Platform Company - Core Expertise in a wide range of cell based therapeutics from dendritic Vaccines to Autlogous Stem Cell therap
Slide 20: NeoStem Management
Robin Smith, MD MBA CEO & Chairman of the Board dian Zhang General Manager, Suzhou Erye Pharmaceuticals Co, Lid ‘an Zhang, PhD MBA President and Managing Director ‘NeoStem (China), Ine Larry May Chief Financia} Officer Catherine Vaczy, Esq VP and General Counsel ‘Alan Harris, ‘MD PhO FACP FRCP VP, R
Slide 21: NeoStem Board Members
Robin Smith, MD, MBA CEO & Chairman of the Board Eric Wei Managing Partner, RimAsia Capital Partners Mingsheng Shi Chairman of the Board of ‘Suzhou Erye Pharmaceutical Steven Myers (independent) Drew Bernstein, CPA (Independent) Richard Berman (Independent) Edward Geehr, MD (Independent) Andrew Peco
Slide 22: NeoStem Capitalization Table
NeoStem C: in Table Capitalization (Common Share Equivalent in 000s) Shares Outstanding % Outstanding Common Stock 75,498 63.0% Total Preferred Shares (common share equivalents) 5,300" 44% Total Warrants (average exercise price $2.90) 25,004 20.9% Total Options (average exercise price $1.87) 13,988
Slide 23: Key Financial Metrics
Key Financial Metrics) Historical Income Statement ($ 000’s)| Balance Sheet ($ 000's) 9 Months Ending As of 9130/10 9130/10 Revenue Cash & equivalents $ 4,067 Pharmaceuticals $ 51,500 Current assets $28,258 oo —— ae Total assets $116,971 = PSE Current liabilities $ 20,570 = “er Total liabilities $ 3
Slide 24: NeoStem's Unique Business Model
NeoStem’s Unique Business Model Leverage, Leverage, Leverage to Create Short-term and Long-term value drivers + Cell Based Manufacturing Platform; manufacturing, consulting, banking, regulatory + Strategic Partnerships with Clients + China Growth Strategy + Use profitable pharmaceutical business to
Slide 25: Contact Information
aS Contact Information = NeoStem, Inc. Robin Smith, MD, MBA Chairman & CEO Phone: (212) 584-4174 Email: rsmith@neostem.com http://www.neostem.com 25