National Stem Cell Laboratory Services, Inc., a wholly owned subsidiary of National Stem Cell Holding, Inc. (Pink Sheets:NHGI) announced today the filing of a letter of intent for a grant from the State of Maryland to investigate the derivation, banking, and therapeutic use of human embryonic and adult stem cells.

In response to Maryland RFA-MD-06-1, National Stem Cell indicated that it will pursue grant money for several avenues of stem cell research and umbilical cord blood banking that will complement or add to its existing work in those fields. Decisions on the grant are expected by Q1 2007.

The areas of exploration include the development of a derivation and expansion platform that is free of non-human animal products, the creation of clean stem cell lines for research or therapeutic use, and the testing of a new proprietary cryo-preservation system to be used in conjunction with their expansion technology and their umbilical cord blood banking program. National Stem Cell will be conducting their research at Johns Hopkins University School of Medicine, with whom the company maintains sponsored research agreements.

The letter of intent also outlines the benefits the company plans to extend to the State of Maryland through its comprehensive plan to accept an award with self-imposed conditions for investment in Maryland's economy. National Stem Cell Laboratory Services, a Maryland corporation, commits that its total expenditures in the state over the five years following the date of the award will exceed the amount awarded.

Michael Cohen, CEO of National Stem Cell, explains, "We are applying for this grant with specific parameters because we believe that the taxpayers in Maryland should benefit from the expenditure of their dollars. We intend to contribute to the Maryland economy by investing in institutions, salaries, and laboratory services for its citizens that will equal or potentially exceed the amount of the grant. Good science and good business practices can and should co-exist."