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09/13/12 1:37 PM

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Improvement In Permanent Rat Spinal Cord Injury, Cell Study Reports

Neuralstem Cells Induce Significant Functional Improvement In Permanent Rat
Spinal Cord Injury, Cell Study Reports

Paralyzed Rats Regain Use of Lower Limbs

PR Newswire

ROCKVILLE, Md., Sept. 13, 2012

ROCKVILLE, Md., Sept. 13, 2012 /PRNewswire/ -- Neuralstem, Inc. (NYSE MKT:
CUR) announced that its neural stem cells were part of a study, "Long-Distance
Growth and Connectivity of Neural Stem Cells After Severe Spinal Cord Injury:
Cell-Intrinsic Mechanisms Overcome Spinal Inhibition, " published online today
in a leading scientific journal CELL (http://www.cell.com/current). In the
study, rats with surgically transected spinal cords, which rendered them
permanently and completely paraplegic, were transplanted with Neuralstem's
spinal cord stem cells (NSI-566). The study reports that the animals recovered
significant locomotor function, regaining movement in all lower extremity
joints, and that the transplanted neural stem cells turned into neurons which
grew a "remarkable" number of axons that extended for "very long distances"
over 17 spinal segments, making connections both above and below the point of
severance. These axons reached up to the cervical region (C4) and down to the
lumbar region (L1). They also appeared to make reciprocal synaptic connectivity
with the host rat spinal cord neurons in the gray matter for several segments
below the injury.

(Logo: http://photos.prnewswire.com/prnh/20061221/DCTH007LOGO )

Further study showed that re-transecting the spinal cord immediately above
the graft abolished the functional gain, indicating that the regeneration of
host axons into the human stem cell graft was responsible for the functional
recovery. The cells that Neuralstem contributed to the study, NSI-566, are the
same cells used in the recently completed Phase 1 clinical trial for the
treatment of amyotrophic lateral sclerosis (ALS or Lou Gehrig's disease).
Neuralstem has also submitted an application to the FDA for a trial to treat
chronic spinal cord injury with these cells.

"This study demonstrates that our neural stem cells can induce regeneration
of injured spinal cord axons into the graft and serve as a bridge to reconnect
to gray matter motor neurons for many spinal cord segments below the injury,"
said Karl Johe, PhD, Chairman of Neuralstem's Board of Directors and Chief
Scientific Officer. "This is important in spinal cord injury because the nerve
connections below the point of injury die, causing paralysis. Our cells built a
bridge that received inputs from regenerating rat axons above the injury. They
also sent out new human axons which made new synaptic connections with the host
motor neurons in the gray matter below the injury. The fact that these cells
induce regeneration of axons and partial recovery of motor function makes them
relevant for testing for the treatment of human spinal cord injury."

About the Study

In a study of 12 rats, all 12 underwent complete spinal transections at
vertebrae, T3. Six of these were subsequently transplanted with Neuralstem
spinal cord stem cells (NSI-566) seven days after the injury. This group was
assessed over the next seven weeks and compared to the control group, which had
not received transplants. The transplanted rats exhibited significant locomotor
recovery, regaining movement in all lower extremity joints. A majority of the
grafted cells (57%) turned into neurons. From these, the study reported, a
remarkable number of axons emerged, extending both above and below the point of
spinal cord lesion. These axons expressed synaptic proteins in the host gray
matter, which suggests they made synaptic contact with the host spinal neurons.

About Neuralstem

Neuralstem's patented technology enables the ability to produce neural stem
cells of the human brain and spinal cord in commercial quantities, and the
ability to control the differentiation of these cells constitutively into
mature, physiologically relevant human neurons and glia. Neuralstem has
recently completed an FDA-approved Phase I safety clinical trial for
amyotrophic lateral sclerosis (ALS), often referred to as Lou Gehrig's disease,
and has been awarded orphan status designation by the FDA.

In addition to ALS, the company is also targeting major central nervous
system conditions with its NSI-566 cell therapy platform, including spinal cord
injury, ischemic spastic paraplegia and chronic stroke. The company has
submitted an IND (Investigational New Drug) application to the FDA for a Phase
I safety trial in spinal cord injury.

Neuralstem also has the ability to generate stable human neural stem cell
lines suitable for the systematic screening of large chemical libraries.
Through this proprietary screening technology, Neuralstem has discovered and
patented compounds that may stimulate the brain's capacity to generate new
neurons, possibly reversing the pathologies of some central nervous system
conditions. The company is in a Phase Ib safety trial evaluating NSI-189, its
first neurogenic small molecule compound, for the treatment of major depressive
disorder (MDD). Additional indications could include chronic traumatic
encephalopathy (CTE), Alzheimer's disease, and post-traumatic stress disorder
(PTSD).

For more information, please visit www.neuralstem.com or connect with us on
Twitter and Facebook.

Cautionary Statement Regarding Forward Looking Information

This news release may contain forward-looking statements made pursuant to the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that such forward-looking statements in this
press release regarding potential applications of Neuralstem's technologies
constitute forward-looking statements that involve risks and uncertainties,
including, without limitation, risks inherent in the development and
commercialization of potential products, uncertainty of clinical trial results
or regulatory approvals or clearances, need for future capital, dependence upon
collaborators and maintenance of our intellectual property rights. Actual
results may differ materially from the results anticipated in these
forward-looking statements. Additional information on potential factors that
could affect our results and other risks and uncertainties are detailed from
time to time in Neuralstem's periodic reports, including the annual report on
Form 10-K for the year ended December 31, 2011 and the quarterly report on Form
10-Q for the period ended June 30, 2012.

SOURCE Neuralstem, Inc.

/CONTACT: Deanne Eagle, Media Relations, +1-917-837-5866; Susan Roush,
Investor Relations, +1-818-222-8330


/Web site: http://www.neuralstem.com