NOVATHERA ANNOUNCES CELL THERAPY INITIATIVE IN CHINA; FORMATION OF STEMING ASIA LIMITED - - JOINT VENTURE

Cambridge, UK , November 23, 2006.

Regenerative medicine technologies will redefine how serious injury and degenerative disease are treated in the 21st century. Many countries are seeking to realize this potential and establish the infrastructure needed for regenerative medicine therapies.

‘China has developed several strategic initiatives to build and develop regenerative medicine technologies in order to position itself at the forefront of this field so that its people will benefit from the next generation of medical advances,’ said Ambassador Zha whilst visiting NovaThera.

NovaThera has been working with Dr. Sakis Mantalaris and Imperial College to explore collaborations with Chinese centres of excellence. ‘Our initial contacts revealed a high level of scientific expertise and a willingness to commit to developing regenerative medical technologies,’ said Dr. Mantalaris. ’Our programme of exchange visits made rapid progress in assessing technologies and plans for developing new therapeutic approaches’.

‘Once the opportunity was identified, we worked with our partners at Eastway Consultants to develop the ideas into SteMing Asia and more importantly put the right management team and resources in place to drive the business forward,‘ said Dr. Rob Daniels, CCD of NovaThera.

SteMing Asia is positioned as a central player in the delivery of cell based therapies in China and Asia. A team with European, US, and Chinese management experience leads the JV Company, which is a consortium of partners with an extensive local network, including R&D based at the Hong Kong University of Science and Technology, cGMP production facilities, and clinical application and development partnerships with hospitals throughout China. ‘SteMing Asia was established to be the partner of choice for NovaThera -- and other cell therapy companies -- to access China and Asia’s market,’ said Dr. Ming Pang, Chairman of SteMing Asia.

The company’s near term activities draw on NovaThera’s proprietary 3-D cell culture technology and will include the expansion of umbilical cord blood cells for therapeutic application as well as sales of a bioreactor for culturing human embryonic stem cells (hES) for research purposes. Additionally, SteMing Asia will have an exclusive option to access all platform technologies and novel IP protected regenerative products developed by NovaThera Ltd for the ASEAN region. NovaThera continues to develop and access innovations in regenerative medicine through collaborations with Imperial College, one of the world’s leading research centres in this area and with five other leading academic stem cell research groups in the UK (Cambridge, Southampton, Manchester, Cardiff and the Roslin Institute). ‘This provides a significant opportunity to build a business in China that can continue to access some of the best science and technology in the world,’ said Dr. Pang.

The Chinese Ambassador His Excellency Mr Zha Peixin and Counsellor Zhang Xiaokang visiting NovaThera and being received by Dr Gareth Robert CEO, on 23rd November 2006, to formally announce the formation of SteMing Asia Ltd.

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NOTES FOR EDITORS

Background on NovaThera Ltd.
NovaThera Ltd (“NovaThera”) is an Imperial College spin out company. NovaThera specialises in pioneering applications of biomaterials and stem cell biology for regenerative to provide innovative therapeutic solutions (wound management, bone repair, lung repair). For more information about NovaThera, please visit http://www.novathera.com.

Background on SteMing Asia Ltd.

SteMing Asia Ltd (“SteMing Asia”) is a joint venture between NovaThera (Asia) Ltd (“NTAL”) (a wholly owned subsidiary of NovaThera Ltd), and a consortium of partners in Asia, including Hong Kong University of Science and Technology (HKUST), Eastway Consultants Ltd., and a network of Chinese clinicians, angel investors, and business development partners. SteMing Asia will commercialise cell therapeutics and cell services in China and ASEAN initially. For more information on SteMing Asia contact clara.shen@stemingasia.com SteMing Asia Ltd.,Rm 4599, 4/F, Annex, University of Science and Technology Clear Water Bay, Kowloon, Hong Kong tel: +852 2358 4865; fax: +842 2358 4931; hp: +852 6681 0710

Background on Eastway Consultants Ltd.

Eastway Consultants Ltd (“Eastway Consultants”) is based in Hong Kong with a team of senior executives from multinational pharmaceutical companies. Eastway Consultants provides integrated services for the pharmaceutical, biotechnology and healthcare industries. Specialising in Technology Transfer & Management, International Regulatory & Compliance, Facilities Services & Plant Design, Marketing & Distribution Partnership and Strategic Alliances & Fund Raising.

For more information on Eastway Consultants contact charleskwok@eastway.hk
Eastway Consultants Ltd., 19A Hop Shing Commercial Building, 41-43 Chi Kiang Street, Hung Hom, Kowloon, Hong Kong SAR
tel: +852 2627 1181; fax: +852 2627 1180; hp: +852 9768 3589

This press release contains forward looking statements that involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from the results, performance or
achievements expressed or implied by these forward looking statements.