WELCOME TO THE JUNGLE!

[Warhorse]

This one could see a real nice bounce over the next couple of trading sessions, astm

(COMTEX) B: Aastrom Biosciences to Raise $13.5 Million in Registered Direc
Offering ( PrimeNewswire )
B: Aastrom Biosciences to Raise $13.5 Million in Registered Direct Offering ( Pr
meNewswire )

ANN ARBOR, Mich., Oct 16, 2007 (PrimeNewswire via COMTEX) --
Aastrom Biosciences, Inc. (Nasdaq:ASTM), a leading regenerative medicine
company, announced today that it has executed definitive Purchase Agreements
for the sale of approximately 11.8 million Units in a registered direct
placement to a select group of unaffiliated institutional investors at a
price of $1.14 per Unit for gross proceeds of approximately $13.5 million.
Each Unit consists of one share of the Company's common stock and a warrant
to purchase 0.5 shares of the Company's common stock at a price of $1.5875
per share, which represents a 25% premium to the Company's closing stock
price on October 15, 2007. These warrants are not exercisable for six months
and one day after the date of issuance, and will then be exercisable
thereafter for a period of five years. If the warrants are exercised it will
generate up to an additional $9.4 million in proceeds to Aastrom. This
transaction is expected to be completed within the next few days, subject to
customary closing conditions. BMO Capital Markets Corp. served as the
exclusive placement agent in this transaction.

A registration statement relating to these securities has been filed with
the U.S. Securities and Exchange Commission. A prospectus and prospectus
supplement relating to this transaction may be obtained directly from the
Company (Investor Relations Department, P.O. Box 376, Ann Arbor, MI 48106) or
from the U.S. Securities and Exchange Commission website at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation
of an offer to buy, and these securities cannot be sold in any state in which
this offer, solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.

About Aastrom Biosciences, Inc.

Aastrom is a leader in the development of autologous cell products for the
repair or regeneration of human tissue. The Company's proprietary Tissue
Repair Cell (TRC) Technology involves the use of a patient's own cells to
manufacture products to treat a range of chronic diseases and serious
injuries affecting bone, vascular, cardiac, and neural tissues. Aastrom's
TRC-based products contain increased numbers of stem and early progenitor
cells, produced from a small amount of bone marrow collected from the
patient. The TRC Technology platform has positioned Aastrom to advance
multiple products into clinical development. Currently, the Company has a
bone regeneration product in Phase III development for the treatment of
osteonecrosis of the femoral head (called the ON-CORE trial), a vascular
regeneration product in Phase IIb development for the treatment of critical
limb ischemia (called the RESTORE-CLI trial), and preclinical research
programs targeting unmet needs in cardiac and neural health. Aastrom product
candidates to treat osteonecrosis of the femoral head and dilated
cardiomyopathy have been designated for orphan drug status by the FDA. For
more information, visit Aastrom's website at www.aastrom.com. (astmc)

The Aastrom Biosciences, Inc. logo is available at
http://www.primenewswire.com/newsroom/prs/?pkgid=3663

This document contains forward-looking statements, including without
limitation, statements concerning the timing of planned clinical trials,
clinical trial strategies, product development objectives, potential
advantages of TRC-based products and potential product applications, which
involve certain risks and uncertainties. The forward-looking statements are
also identified through use of the words "expected," and other words of
similar meaning. Actual results may differ significantly from the
expectations contained in the forward-looking statements. Among the factors
that may result in differences are potential patient accrual difficulties,
clinical trial results, potential product development difficulties, the
effects of competitive therapies, regulatory approval requirements, the
availability of financial and other resources and the allocation of resources
among different potential uses. These and other significant factors are
discussed in greater detail in Aastrom's Annual Report on Form 10-K and other
filings with the Securities and Exchange Commission.

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: Aastrom Biosciences, Inc.
Aastrom Biosciences, Inc.
Investor Relations Department
Kris M. Maly
[phone]
Cameron Associates
Kevin McGrath
[phone]
(C) Copyright 2007 PrimeNewswire, Inc. All rights reserved.
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