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Entest BioMedical Updates Status of Proposed Medistem Transaction, Discusses Potential Revenue Streams

^{Published on 2010-05-12 05:10:46 - Market Wire}
 

SAN DIEGO, CA--(Marketwire - May 12, 2010) - Entest BioMedical, Inc. (OTCBB: [ ENTB ]) announced commencement of due diligence in preparation of the proposed acquisition of Medistem, Inc. The due diligence process includes examination of Medistem's intellectual properties, company financials and key business relationships. On April 5, 2010, Entest Biomedical entered into a Letter of Intent ("LOI") regarding the contemplated acquisition of approximately 61% of Medistem.

Medistem has a portfolio of products in various stages of development covered by 15 families of patent applications and has filed an Investigational New Drug (IND) Application with the FDA for use of its Endometrial Regenerative Cells for the treatment of critical limb ischemia, a form of peripheral artery disease. Medistem's Endometrial Regenerative Cell (ERC) is a "universal donor" stem cell that is capable of differentiating into heart, bone, muscle, blood vessel, lung, brain, liver, and islet cells.

David Koos, Chairman & CEO of Entest BioMedical, stated, "We are currently reviewing Medistem's operations as part of our due diligence. Both Dr. Thomas Ichim, CEO of Medistem, and myself have been studying how Medistem's intellectual properties may dovetail into Entest's treatment models and are both extremely excited about the prospects of a combined entity . We believe that Medistem's ERC stem cells could become an important component of Entest's therapeutic treatment for Chronic Obstructive Pulmonary Disease (COPD). The ERC appears to facilitate the regeneration of blood vessels, a critical factor in curing COPD. We look forward to working jointly towards cures for COPD, Critical Limb Ischemia and an Immunotherapeutic cancer vaccine for animals."

A spokesperson for Entest noted that the contemplated acquisition has the potential to generate a term revenue stream as a result of reagent sales of Medistem's ERC stem cell. Entest anticipates being able to market 2,000 units of the ERC stem cell reagents within 12 months of this transaction at $500 per unit.

The proposed acquisition contemplated by the LOI is subject to the parties entering into a definitive agreement and the satisfaction of the terms and conditions of that agreement.

About Entest BioMedical Inc.:

Entest BioMedical Inc. (OTCBB: [ ENTB ]) is involved with the development of stem cell therapy treatments for Chronic Obstructive Pulmonary Disease (COPD), immuno-cancer therapies, testing procedures for diabetes, stem cell research applications for diabetes and other illnesses. The Company also is involved with medical device development (including stem cell extraction instrumentation). ENT-576™ is a proprietary laser device currently under development by Entest. The Company has filed 4 patent applications relating to the treatment of COPD. Entest BioMedical Inc. is a majority owned subsidiary of Bio-Matrix Scientific Group Inc. (OTCBB: [ BMSN ]). Recently Entest announced publication of its platform technology in the peer-reviewed Journal of Translational Medicine which is available at [ http://www.translational-medicine.com/content/8/1/16 ]. For additional information on Entest, go to the Company's website: [ www.entestbio.com ] or its blog site: [ www.entestbioblog.com ].

Disclaimer

This news release may contain forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks.