Proneuron Cell Processing Platform in Denver is Ready for the Clinical Trials with ProCord™
June 25, 2003

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Los Angeles, CA and Denver, CO, June 25, 2003
Proneuron Biotechnologies Inc. and Craig Hospital of Denver Colorado today announced the establishment of Proneuron's cell processing center in Denver. Following the successful completion of its IND approved phase I studies, this center will enable Proneuron, pending FDA approval, to start Phase 2 clinical trials and provide its proprietary autologous macrophage treatment (ProCord™) to complete spinal cord patients in the US within 14 days of their injuries. It is anticipated that following the necessary approvals, enrollment in the study will begin at Craig in the fall of 2003.

The Denver cell processing center in addition to Proneuron's collaboration with Progenitor Cell Therapy, L.L.C. in New Jersey are setting the fundamentals for Proneuron's operation in the US and shall serve the company both through the next stages of the clinical development and commercialization of ProCord™.

"Less than a year ago, we entered our collaboration with the Craig Hospital under the support of the BIRD Foundation. The Craig Hospital team has proven to be an ideal partner in our endeavors. With their clinical leadership and tremendous support, compounded by our initial promising clinical results, we are enthusiastically entering the next stages of our development of ProCord™.", said Nir Nimrodi, Proneuron's chief executive officer

Denny O'Malley, Craig Hospital's President of 29 years added: "Craig Hospital is very pleased to be part of this exciting collaboration with Proneuron. The Phase I Clinical trial has given us optimism that there is more to be learned in this next phase of research which could ultimately benefit people with spinal cord injuries. That is our goal - to help this population to whom we have devoted so much of our mission."

About Proneuron: Proneuron Biotechnologies Inc. is a privately held biopharmaceutical company developing products for the treatment of spinal cord injuries and other acute and chronic disorders of the central nervous system based on proprietary technology for modulating the interaction between the nervous and the immune systems. Proneuron has recently entered in to a strategic agreement with Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA) to jointly develop a therapeutic vaccination for a number of neurological diseases including spinal cord injury. For more information about Proneuron and ProCord™, visit www.proneuron.com.

About Craig: Craig is one of the world's leading centers for the treatment of spinal cord injuries and traumatic brain injuries and Craig has treated over 23,000 SCI patients, the largest number of any single US facility. The hospital is designated by the National Institutes of Disability Rehabilitation & Research as one of just 16 model spinal cord injury centers and 17 model traumatic brain injury centers in the US. Additionally, Craig has been listed for thirteen consecutive years as one of the top US rehabilitation centers by U. S. News and World Report magazine.