Slide 1: NeoStem, Inc. Investor Presentation
NeoStem, Inc. (“NBS”) Investor Presentation August 2011
Slide 2: Forward-Looking Statements
Forward-Looking Statements Included in this presentation are “forward-looking” statements within the meaning ofthe 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 whi
Slide 3: Investment Highlights
Investment Highlights © PCT -aleading cell therapy developer and contract manufacturer * Robust proprietary product pipeline o AMR-001 for AMI entering Phase 2 & CHF entering Phase 1 © Athelos 001 entering Phase 1 in GVHD o Athelos 002 entering Phase 1 in Asthma and Diabetes « Adult stem cell techno
Slide 4: Leader in Cell Therapy Development and Contract Manufacturing
Leader in Cell Therapy Development and Contract Manufacturing In January 2011, completed the acquisition of Progenitor Cell Therapy (PCT) adding market leading manufacturing and regulatory expertise as well as proprietary therapeutics CMO - manufacturing, regulatory and commercialization expertise f
Slide 5: Cell Therapy Industry
Cell Therapy Industry ~Amorcy tee ssh = hr Osiris. éinvitrogen” @ Hospira (A) coronado RB @Therakos my . foeneee STEMEELLS Beets Revenue Potential: Grows as Client’s Product Advances Phase 2 Phase 3 Commercial Client A Patients Revenue Patients Revenue Patients Revenue Oncology 25 $625,000 100 $2,00
Slide 6: Amorcyte Acquisition
=s 2 Amorcyte Acquisition VAMOLCy te. e $10 million of NBS common stock ¢ $2 million of warrants ¢ $6 million of NBS vesting upon achievement of AMR-001 milestones © 33% upon completion of Phase 2 clinical trial © 33% upon satisfaction of the Phase 2 Primary Endpoint o 33% upon Phase 3 readiness
Slide 7: AMR-001 — Preservation of Heart Muscle Function and Decrease in MACE
AMR-001 — Preservation of Heart Muscle Function and Decrease in MACE An autologous bone marrow derived pharmaceutical grade product enriched for CD34*CXCR4* cells intended to preserve heart muscle function and limit MACE following acute myocardial infarction. ¢ Homogeneous and highly purified cell p
Slide 8: Cell Type: CD34+CXCR4+ Cells are a Natural Repair Mechanism
Cell Type: CD34*CXCR4* Cells are a Natural Repair Mechanism The body attempts to rescue damaged tissue to prevent ventricular remodeling: e Adistress signal (HIF) is induced by hypoxia in the peri-infarct zone e HIF induces synthesis of SDF and VEGF, which mobilize CD34*CXCR4' cells @ = CD34+/CXCR4+
Slide 9: 20% of MI patients experience progressive deterioration in heart muscle function
20% (160,000 annually in US) of MI patients experience progressive deterioration in heart muscle function (| LVEF, ESV, | LVWM) and an increase in Major Adverse Cardiac Events (MACE) * Premature Death Infarctextension due te apoptosis of ; . hibernating myocardium * Recurrent Myocardial Infarction *
Slide 10: AMR-001 Phase 1 Clinical Trial Protocol
Indication Primary Endpoint Other Endpoints Key Inclusion Criteria Dosing Frequency Groups and Randomization Number of Subjects Number of Sites Geography Trial Duration % AMR-001 Phase 1 Clinical Trial Protocol <a Post-AMI with LVEF $50% and Wall Motion Abnormality in the myocardium of the IRA Safet
Slide 11: Dose Response Established
Dose Response Established SS Al Y =A Infarct % LV Mass, X = Dose of SDF1 mobile CD34 cells 10.0% ° 50% 4 00% Le | 200600 SOI y A ooes0s —150E0 — 200EH 28005 3.00806 -10.0% | | # Ainfarct % 4 ° o @ Wass eS 15.0% + ° w=04971 20.0% - Y= A RTSS, X = Dose of SDF1 mobile CD34 cells 200 + 200 * * “4498190
Slide 12: Threshold Dose for Efficacy Established
Threshold Dose for Efficacy Established RTSS (Hypoperfusion) Cohort Base Line 6 months Delta % Change Control 259.0 273.5 +145 +5.6 5M 714.2 722.0 +7.8 +1.1 10M 998.6 635.8 -362.8 15M 584.0 462.0 -122.0 Patients dosed >= the threshold dose of 10 million cells showed significant improvement in perfus
Slide 13: Subgroup Analyses: Additional Cardiac Function Test Results
Subgroup Analyses: Additional Cardiac Function Test Results RTSS (Hypoperfusion) Ejection Fraction 6 month 6 month Base ¢ wo. A %A BL 6 Mo. A% line tr Below 510 518 07 Below 385.4 398.1 +12.6 Threshold Threshold Above 48.2 52.7 44.5 Above 8143 558.6 -255.8 Threshold Threshold End Systolic Volume Dro
Slide 14: Serious Adverse Events
2 Serious Adverse Events All Treated Control Group (N=15) (N=15) SAEs before hospital discharge Acute stent thrombosis 1 0 Death 8 v SAEs at 1 year follow up Re-hospitalization for heart failure a: 0 Cerebral infarction (e) ac Chest pain requiring admission a A Chronic myeloid leukemia 1 0 In-stent
Slide 15: Phase 2 Clinical Plan
2 Phase 2 Clinical Plan Indication Primary Endpoint Other Endpoints Dosing Frequency Dosing and Randomization Number of Subjects Number of Sites Geography Trial Duration Post-AMI Preservation of Cardiac Function Increased Cardiac Perfusion (RTSS) measured by SPECT and preservation of LVEF by CMR Red
Slide 16: T-reg Cells - Restoring Immune Balance
2 T-reg Cells - Restoring Immune Balance * Immune mediate diseases such as GVHD, autoimmune diseases and allergic diseases are a result of imbalance between T effector cells and T regulatory cells (T-reg) * T-reg therapy represents a novel approach for restoring immune balance by enhancing T-regulat
Slide 17: VSEL Pluripotent Adult Stem Cells
x % VSEL™ Pluripotent Adult Stem Cells * VSEL™ (Very Small Embryonic-Like) Technology is NeoStem’s proprietary adult stem cell technology platform * Believed to be naturally pluripotent — no manipulation VSEL™ required * iPSCs (Induced Pluripotent Stem Cells) are recognized as » : | manipulated and
Slide 18: Patents & Patent Applications
Patents & Patent Applications ° NeoStem aggressively pursues domestic and international patent protection, building a dominant IP portfolio within the field of cell therapy to protect its cutting edge technologies * Composition of Matter patents granted for Athelos (2023) & AMR-001 (2028) *¢ NeoStem
Slide 19: NeoStem's Asia Entities
2 NeoStem’s Asia Entities * PCT-CMO Laboratory & Plant in Beijing © Complements sister facilities in Mountain View California and Allendale, New Jersey o Laboratory Facility for processing, banking, and manufacturing comparable to U.S. o Built to same design and standards * Network of Hospitals deli
Slide 20: Key Financial Metrics
Key Financial Metrics (1) (2) Historical Income Statement ($000s) Balance Sheet ($000s} Year Ended Quarter Ended As of December 31, 2010 _March 31, 2011 December 31,2010 __March 31, 2011 Revenue Cash & equivalents $ 15,613 $ 9,412 Pharmaceuticals* $ 69,584 $ 18,142 Current assets $ 46,883 $ 50,438 S
Slide 21: Capitalization Table
Capitalization Table NeoStem Capitalization Table Capitalization (Common Share Equivalent in 000s) Shares Outstanding % Outstanding ‘Common Stock 97,049" 619% Total Preferred Shares (common share equivalents) 5,204") 3.3% Total Warrants (average exercise price $2.44) 35,319") 22.5% Total Options (av
Slide 22: Management Team
Robin Smith, MD MBA CEO & Chalrrian of the Board 3ian Zhang General Manager, Suzhou Erye Pharmaceuticals Co., Ltd Tan Zhang, PhD MBA President and Managing Director ‘NeoStem (China), Inc Larry May Chief Fivancial Officer Catherine Vaczy, Esq VP and General Counsel ‘Alan Harris, MD PhO FACP FRCP VP,
Slide 23: NeoStem Board Members
NeoStem Board Membe: Robin Smith, MD, MBA + MD — Yale; MBA - Wharton CEO & Chairman of the Board » Formerly President & CEO IP2M (HC multimedia), EVP & CMO HealthHelp (radiology management) + Trustee of NYU Medical Center; Chairman of the Board of NYU Hospital for Joint Diseases (through November 20
Slide 24: Near Term Catalysts
2 Near Term Catalysts AMR-001 © Start of Phase 2 trial in AMI in 1Q12 © Start of P1 trial in CHF in 1Q12 Partnerships, licensing agreements and or acquisitions of Phase 2/3 ready cell therapy assets in oncology, regenerative medicine and immunology are in active discussions now Monetization of 51% o
Slide 25: Investment Highlights
Investment Highlights ¢ PCT -a leading cell therapy developer and contract manufacturer ¢ Robust proprietary product pipeline o AMR-001 for AMI entering Phase 2 & CHF entering Phase 1 o Athelos 001 entering Phase 1 in GVHD o Athelos 002 entering Phase 1 in Asthma and Diabetes ¢ Adult stem cell techn
Slide 26: Appendix
Appendix 26
Slide 27: AMR-001 Advantages in the Landscape
2 AMR-001 Advantages in the Landscape S AMR-001 Advantages * Functionality of CD34+CXCR4 cells * Confirmed mechanism of action * cGMP processing and manufacturing pie as ee that stabilizes the CD34+CXCR4+ cells ean Potential Toxicities /Safety | + Potency, viability, stability, sterility, and Slenet
Slide 28: Patient treatment and trial flow
1, Patient presents with chest pain 2. Patient receives 3. Patient screened, and 4. Patient + STEMI, and is assessed via stenting and usual enrolled in trial if Ejection randomized into Ventriculography (EF <45%) medical Rx Fraction (EF) S 48% Treatment or Control Ventriculography 5. Patient Bone 6.
Slide 29: Once Lost, Cardiomyocytes are Unable to Significantly Regenerate
Once Lost, Cardiomyocytes are Unable to Significantly Regenerate to Restore Cardiac Function be lost after sub-lethal AMI in * 108-109 cardiomyocytes may | humans (1) i= ve Superior vena cas ortioars « * Bermann, et al (2), measured the integration of carbon-14, into DNA of cardiomyocytes in humans
Slide 30: Post STEMI Complications Are a Function of Left Ventricular Ejection Fraction
Post STEMI Complications Are a Function of * Left Ventricular Ejection Fraction % ONE-YEAR CARDIAC MORTALITY of cy, o 15 30 4 6 75 RADIONUCLIDE EJECTION FRACTION (%) N= 2 24d 382 152 Figure 1. Carciac Mortality Rate in Four Categories of Radionu- “clide Ejection Fraction {J +) Determined before Disc
Slide 31: Circulating CD34+ Cell Levels and Migratory Capacity Correlate with Cardiac Function
Cell Type: Circulating CD34*Cell Levels and Migratory Capacity Correlate with Cardiac Function ¢ Circulating CD34* cell quantity 1 year post MI significantly correlates (positive) to left ventricular ejection fraction (LVEF), wall motion score index, end diastolic volume and end systolic volume e@ T
Slide 32: IRA Infusion of Bone Marrow-MNCs Preserve Cardiac Function Reduce MACE
IRA Infusion of Bone Marrow-MNCs Preserve Cardiac Function Reduce MACE in a Dose-Dependent Fashion in Patients Early and Late Post AMI The Benefits Persist Out to Five Years * Over 1000 AMI patients have received IRA Infusion of Bone Marrow MNC (BMNC) Post AMI and have had significant improvements i
Slide 33: Isolated CD34+ Cells Most Able to Improve Perfusion
Cell Type: Isolated CD34*Cells Most Able to Improve Perfusion, Prevent Apoptosis and Rescue Hibernating Cardiomyocytes CD34°* Cells Exhibit Increased Potency and Safety for Therapeutic Neovascularization after AMI Compared with Total Mononuclear Cells in Nude Rats: Capillary density LF tardy k 1200
Slide 34: Isolated CD34+ Cells Best Able to Maintain Cardiac Function
Cell Type: Isolated CD34* Cells Best Able to Maintain Cardiac Function The Superior Improvement in Capillary Density and Decrease in Fibrosis seen with purified CD34* Cells Infusion Correlates with Superior Improvement in Cardiac Muscle Function: (%) Fractional Shortening Regional Wall Motion Score
Slide 35: CD34+ Cells Localize in the Peri-infarct Zone
CD34* Cells Localize in the Peri-infarct Zone Localization of transplanted CD34 cells in the peri-infarct area of the heart is revealed by coregistration of MRI, micro-CT and micro-PET A1. Three-dimension rendering of micro-CT to show anatomy and viewing angle for (A2 and A3) micro-PET maximum inten
Slide 36: Long-term BLI of TGL-CD34 in SCID mice
Long-term BLI of TGL-CD34 in SCID mice: A. The bioluminescent signal in the heart was superimposed on a photograph of a SCID mouse for the indicated time points after CD34 cell injection (representative mouse) B. BLI intensity in SCID mice injected with CD34 cells is significantly higher than the mi
Slide 37: LVEF significantly improved in treated mice compared to control mice
LVEF significantly improved in treated mice compared to control mice for up to 52 weeks CD34" cells Evaluation of cardiac function using MRI: A. Representative sequential images of the ES and ED volumes from a CD34* cell-transplanted mouse and a control mouse over 25 weeks. Baseline Week 26 Baseline
Slide 38: In vivo an’
In vivo an’ ody treatments in| myogenesis/angiogenesis and affect cardiac function induced by injection of CD34" cells into mice after MI. § ‘7 hn : c os Joa dos ~ 3 Se oe comtcls = FF Ok ae ch eee EE A ts vecr sol VER atmeine Egg, mB Week after MM | ‘| L |e ile =a g lee % 30 i lex I a 0 * ° + + oe