HAIFA, Israel--(BUSINESS WIRE)--Aug. 16, 2004-- Pluristem Life Systems, Inc. (OTC BB:PLRS - News), a biotechnology company dedicated to the expansion of stem cells from umbilical cord blood to address a myriad of fatal illnesses, today announced that the Company has received financing from the Office of the Chief Scientist to collaborate with the renowned Technion -- Israel Institute of Technology (Technion).

This interdisciplinary endeavor brings top scientists together to develop Pluristem's next phase platform technology using biodegradable scaffolding in the PluriX(TM) for expanding stem cells collected from umbilical cord. The research program will combine the efforts of leading scientists from the Technion Faculties of Medicine, Chemistry, Material Engineering and Biotechnology, and the Pluristem research and development team led by Dr. Shai Meretzki.

The stromal-coated biodegradable scaffolds will create a biocompatible 3-D environment to support Hematopoietic Stem Cells (HSC) expansion within the PluriX(TM) bioreactor. This promising new approach is expected to significantly improve the success rate of bone marrow transplantations using HSC from cord blood.

"This exciting initiative that we are conducting in collaboration with experts from Technion could revolutionize the field of cord blood transplantations for the treatment of patients. Having made such tremendous strides in our proprietary methods of HSC expansion, as demonstrated in our poster presentation at the recent ISEH Meeting in New Orleans, results achieved in this project are expected to bring Pluristem to the next milestone," stated Shai Meretzki, Chief Technology Officer.

"In our mission, we continue to strive to reach new platforms that will enable Pluristem's proprietary stem cell expansion technology to be utilized in optimal environments for successful bone marrow transplantations. We are honored to continue our work with the formidable Technion Institute," stated Dr. Mendi Ze'evi, Chief Executive Officer.

"Concurrently, the Company has placed tremendous focus on gearing up its activities to satisfy the requirements of the FDA as we aggressively pursue our entry into the clinical trial phase and, at the same time, make significant strides in our acquisition strategy," Ze'evi concluded.

About Pluristem

Pluristem is a biotechnology company dedicated to the development of stem cell expansion technology. The Company is concentrating on the expansion of cord blood hematopoietic stem cells (blood and immune system cells) to provide vital stem cell expansion services to blood banks and transplants centers in the U.S. and Europe.

For more information, visit the Company's website at: www.pluristem.com.

Safe Harbor Statement

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Pluristem Life Systems, Inc., and members of our management as well as the assumptions on which such statements are based. Forward-looking statements in this release include statements regarding our developing stem cell technology into a useful product which, among other things, can treat fatal illnesses and obtaining patent protection in the US and worldwide for our technology. Actual outcomes and our actual results could differ materially from those in such forward-looking statements. For further risk factors see the Company's latest 10-KSB filed with the SEC.

Source: Pluristem Life Systems, Inc.