Advanced Cell Technology Enters Into Definitive Merger Agreement With Mytogen, Inc.

ACTC Prepares to Take Therapy to Phase II Clinical Trials ALAMEDA, Calif., Aug. 1 /PRNewswire-FirstCall/ -- Advanced CellTechnology, Inc. (OTC Bulletin Board: ACTC) today announced that it hasentered into a definitive merger agreement to acquire all of theoutstanding capital stock of Mytogen, Inc. In May 2007, the companyannounced that it had entered into a letter of intent to acquire Mytogen,Inc. and its Myoblast Program for the treatment of heart failure. With thedefinitive merger agreement approved and executed by both parties, ACT andMytogen will move quickly to close the transaction, which is signed subjectto certain closing conditions. The merger agreement provides for anaggregate purchase price of $5 million payable in ACTC common stock plusthe assumption of certain Mytogen liabilities. Mytogen shareholders willalso receive a warrant to purchase an additional 1.5 million shares of ACTCcommon stock at $0.75 subject to the achievement of certain milestones. Mytogen brings to the company over ten years of experience in clinicaltrial and FDA experience in developing and advancing cellular therapiesincluding the area of stem cells. Mytogen has successfully completed PhaseI human clinical trials utilizing the myoblast therapy safely in over fortypatients. The FDA has reviewed the "end-of-Phase I" data and allowedMytogen to proceed with a Phase II human clinical trial. Upon closing theacquisition, Advanced Cell Technology plans to begin the Phase II humanclinical trial for the treatment of heart failure in approximately 160patients. If successful, the company expects to proceed with a pivotalPhase III trial for the therapy. The Myoblast Program may proveparticularly beneficial for patients that have experienced a serious heartattack and have a high risk of heart failure. This stem cell therapyinvolves transplantation of expanded autologous myoblasts (adult progenitorstem cells) derived from a small biopsy of skeletal muscle from a patient'sleg. The technology allows for the expansion of myoblasts into hundreds ofmillions of cells over a period of two to three weeks. The resultingmyoblasts are then transplanted back into the patient's scarred hearttissue through the use of a catheter- based procedure. While the Phase Ihuman clinical trials were focused on the safety of the therapy, theclinical data from those trials suggests that the myoblasts often improvefunction in the heart and can lead to a significant increase in quality oflife for the patient. "Advanced Cell Technology has always been on the cutting edge ofregenerative medicine and we are excited to join their team," noted Dr.Jonathan Dinsmore, President and Chief Scientific Officer of Mytogen, Inc."By merging with Advanced Cell, we can now more rapidly move forward withour clinical trials and bring our novel therapies to cardiac patients inneed of treatment." William M. Caldwell, IV, Chairman and CEO of Advanced Cell Technologyremarked, "We remain committed to the field of human embryonic stem cellresearch and believe that the promise of the Myoblast Program combined withthe synergies with our Hemangioblast Program provide a diverse technologyplatform in stem cell therapy focused on the treatment of heart attack andheart failure. We are excited about this merger and look forward tofocusing our efforts on commencing the Phase II clinical trials. Thesigning of this definitive agreement signals ACTC's transition from adevelopment stage to a clinical stage company." Additional details regarding the definitive merger agreement withMytogen will be included in a Current Report on Form 8-K to be filed by theCompany with the Securities and Exchange Commission. About Advanced Cell Technology, Inc. Advanced Cell Technology, Inc. is a biotechnology company applyingembryonic stem cell technology in the emerging field of regenerativemedicine. The company operates facilities in Alameda, California andWorcester, Massachusetts. For more information, visit http://www.advancedcell.com About Mytogen, Inc. Mytogen, Inc. is a Massachusetts based company developing autologousmyoblast transplantation designed to restore cardiac function in patientswith heart failure. The incidence and progressive nature of heart diseasemake it the leading cause of morbidity and mortality in the U.S. Mytogen isadvancing a proprietary formulation of cultured human myoblasts and anoptimized delivery system to deliver cells to the site of cardiac damage.Mytogen represents the consolidation of experts in areas including clinicalmanufacturing of biologics, cell transplantation, and stem cell biology andbenefits from intellectual property assets and clinical trial experienceacquired from Genvec and Diacrin, Inc. Currently, Mytogen is conductingU.S. human clinical trials of its myoblast therapy with FDA oversight, andis positioned to launch multi-center phase II studies in the near future. Forward-Looking Statements Statements in this news release regarding future financial andoperating results, future growth in research and development programs,potential applications of our technology, opportunities for the company andany other statements about the future expectations, beliefs, goals, plans,or prospects expressed by management constitute forward-looking statementswithin the meaning of the Private Securities Litigation Reform Act of 1995.Any statements that are not statements of historical fact (includingstatements containing the words "will," "believes," "plans," "anticipates,""expects," "estimates," and similar expressions) should also be consideredto be forward- looking statements. There are a number of important factorsthat could cause actual results or events to differ materially from thoseindicated by such forward-looking statements, including: limited operatinghistory, need for future capital, risks inherent in the development andcommercialization of potential products, protection of our intellectualproperty, and economic conditions generally. Additional information onpotential factors that could affect our results and other risks anduncertainties are detailed from time to time in the company's periodicreports, including the report on Form 10-QSB for the quarter ended March31, 2007. Forward-looking statements are based on the beliefs, opinions,and expectations of the company's management at the time they are made, andthe company does not assume any obligation to update its forward-lookingstatements if those beliefs, opinions, expectations, or other circumstancesshould change. Forward-looking statements are based on the beliefs, opinions, andexpectations of the company's management at the time they are made, and thecompany does not assume any obligation to update its forward-lookingstatements if those beliefs, opinions, expectations, or other circumstancesshould change.