NeoStem Prices $25,000,000 Public Offering of Common Stock

Hires Dr. Merrick Ross of MD Anderson Cancer Center as Lead Principal Investigator for the Pivotal Phase 3 Trial for Metastatic Melanoma

We promised there was more to come - and here it is.

Neostem has made great progress with their clinical developments and as we had announced on Tuesday, has hired Dr. Merrick Ross of MD Anderson Cancer Center as Lead Principal Investigator for the Pivotal Phase 3 Trial for Metastatic Melanoma. With this underwritten public offering lead by AEGIS Capital Corp, a well established New York Financial Service Company, Neostem is moving into the next phase of its development.

New York, May 27, 2015 -- NeoStem, Inc. (Nasdaq:NBS) ("NeoStem" or the "Company"), announced today the pricing of an underwritten public offering of 12,500,000 shares of common stock at a public offering price of $2.00 per share. The gross proceeds to NeoStem from this offering are expected to be $25,000,000 before deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company. The Company has granted the underwriter a 45-day option to purchase up to an aggregate of 1,875,000 additional shares of its common stock to cover over-allotments, if any. The Company intends to use the net proceeds from this offering for working capital, including research and development of cell therapeutic product candidates, especially its lead immuno-oncology program, NBS20, expansion of business units, strategic transactions and other general corporate purposes. The offering is expected to close on or about June 2, 2015, subject to the satisfaction of customary closing conditions.

 Aegis Capital Corp. is acting as sole book-running manager for the offering. 

The offering is being made pursuant to a shelf registration statement that the Company previously filed with the Securities and Exchange Commission (SEC) and which became effective on October 3, 2012. A preliminary prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC. Electronic copies of the preliminary prospectus supplement and, when available, electronic copies of the final prospectus supplement and accompanying prospectus relating to this offering may be obtained from the SEC's website at http://www.sec.gov or from Aegis Capital Corp., 810 7th Avenue, 18th Floor, New York, NY 10019 or via telephone at 212-813-1010 or email: prospectus@aegiscap.com.
 
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
 
About NeoStem, Inc.
NeoStem is a biopharmaceutical company pursuing the preservation and enhancement of human health globally through the development of novel cell-based individualized medicine therapeutics that prevent, treat or cure disease. The Company is developing therapies based on three platform technologies (immuno-oncology, ischemic repair and immunomodulation) with a focus on its lead, Phase 3 clinical program for NBS20 in immuno-oncology.
 
Forward-Looking Statements
 This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. Forward-looking statements include statements herein with respect to the timing and success of the proposed public offering. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include, among others, the uncertainties related to market conditions, the completion of the public offering on the anticipated terms or at all, the final terms of the proposed offering, and the satisfaction of customary closing conditions related to the proposed public offering. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the Company in general, see the factors described under the heading, "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K filed with the SEC on March 2, 2015 and those described in the Company's other periodic filings with the SEC. The Company undertakes no obligation to update or revise any forward-looking statements.