HSCI declares preliminary price range for its initial public offering

Joint Stock Company Human Stem Cell Institute” (“HSCI” or “the Company”), Russia’s leader in stem cell technology, today announced the preliminary price range for its initial public offering (“IPO”).

• The indicative price range has been set at between 9 and 11 rubles per ordinary share.
• The offering will comprise approximately 15 million ordinary shares.
• The Company’s post-IPO market capitalization is expected to be between 675 million and 825 million rubles, and the free float will be approximately 20%.
• The planned IPO will be conducted on the Innovative & Growing Companies (IGC) sub-sector of the Innovation and Investments Market on the Moscow Interbank Currency Exchange (MICEX).
• After the completion of the IPO, HSCI General Director Artur Isaev will retain the largest shareholding in the company.
• CJSC Alor Invest is the manager and bookrunner for the offering.

To ensure greater liquidity, one of the Company’s shareholders will offer his shares in the Company for placement, and will then buy back shares through an additional placement. This additional placement was approved at a general meeting of HSCI shareholders on September 22, 2009. In this way, all capital raised in the IPO will go back into HSCI. This decision will allow new shareholders to begin trading their securities on the secondary market immediately after purchase.

Commenting on the IPO, HSCI General Director Artur Isaev said:

“The IPO will mark a vital stage of the Company’s development, as well as an important step in creation of a new and dynamic sector in Russia – the biotechnology sector. In addition, the capital we raise will allow us to implement research & development projects to develop our own innovative and unique stem cell-based medications, which are aimed at treating blood cancer, heart attacks, ischemia, burns and skin defects.”

“On a personal level, HSCI’s IPO is yet another step towards making a long-standing dream a reality – that is, to create an efficient and society-friendly enterprise based on innovative medical achievements,” Mr. Isaev added.