Arteriocyte Inc. Completes Phase I Stem Cell Clinical Trial Enrollment

Arteriocyte, Inc., a clinical stage research and development company focused on creating stem cell therapies for the treatment of vascular diseases, announced today that it has reached the three month patient follow-up point for its SEACOAST Phase I clinical trial. The study is evaluating the safety of ACY001, Arteriocyte's lead cellular therapy product. ACY001 is an adult stem cell therapy harvested from bone marrow to treat chronic ischemia, a serious form of heart disease.

The company also announced that an update on the clinical trial will be presented at the TCT2006 meeting in Washington, D.C. on October 27.

Arteriocyte's SEACOAST trial - believed to be one of the first clinical trials in the U.S. to evaluate the safety of infusing adult derived selected stem cells into the coronary arteries of patients with chronic ischemia - began enrolling patients in January 2006. The single-center clinical study, currently underway at University Hospitals Case Medical Center in Cleveland Ohio, completed enrollment of its final patient in June. The cohort has now reached the three-month follow up point.

"We are extremely pleased with the rapid patient accrual into the SEACOAST trial and the high quality of patient care and clinical management delivered by the Case Medical Center team," said Arteriocyte CEO Don Brown. "Case Medical Center's cardiovascular and clinical trial expertise is truly second to none."

"We expect the SEACOAST trial's novel therapeutic approach provides an important opportunity to assess stem cell therapy in the no-option chronic ischemia patient, typically patients who have failed to benefit from prior surgical interventions," added Phil Cola, Vice President of Research and Technology at University Hospitals Case Medical Center. "This study will bring to light important information in the treatment of this patient population."

A clinical update on SEACOAST will be presented at the 18th annual scientific symposium at the Transcatheter Cardiovascular Therapies conference in the Washington, D.C. Convention center on Thursday afternoon October 27, 2006, in room 145AB during the Innovative Devices and Futuristic Therapies session.

About Arteriocyte

Arteriocyte, Inc. is a clinical stage biotech company based in Cleveland, Ohio that is developing proprietary stem cell based therapies targeted for the treatment of ischemia in patients suffering from coronary artery disease, peripheral vascular disease, stroke, and renal ischemia. The Company was founded in January of 2004 and is based upon more than four years of NIH-sponsored research utilizing stem cells to stimulate angiogenesis (new vessel growth).

Arteriocyte's development program is focused on creating cellular therapies that will trigger new blood vessel growth to relieve ischemia in patients who suffer from insufficient blood flow to their organs and tissues. Arteriocyte's scientists have identified and conducted extensive research on vascular delivery of defined combinations of stem cells to ischemic tissue, and while their research has utilized stem cells from a variety of sources, Arteriocyte's ultimate goal is to develop umbilical cord blood - a rich source of stem cells - as the basis for the company's future cellular medicines.

About University Hospitals

With 150 locations throughout Northeast Ohio, University Hospitals serves the needs of patients through an integrated network of hospitals, outpatient centers and primary care physicians. At the core of our Health System is University Hospitals Case Medical Center. The primary affiliate of Case Western Reserve University School of Medicine, University Hospitals Case Medical Center is home to some of the most prestigious clinical and research centers of excellence in the nation and the world, including cancer, pediatrics, women's health, orthopedics and spine, radiology and radiation oncology, neurosurgery and neuroscience, cardiology and cardiovascular surgery, organ transplantation and human genetics. Its main campus includes the internationally celebrated Rainbow Babies & Children's Hospital, ranked best in the Midwest and first in the nation for the care of critically ill newborns; MacDonald Women's Hospital, Ohio's only hospital for women; and Ireland Cancer Center, which holds the nation's highest designation by the National Cancer Institute of Comprehensive Cancer Center. For more information, go to www.uhhospitals.org.