Stem Cell Therapeutics Corp. Announces Final Payment to Transition Therapeutics Inc. to Complete the Acquisition of Intellectual

Stem Cell Therapeutics Corp. (TSX VENTURE:SSS) ("SCT") announces today that it
has elected to pay the final installment of the intellectual property
acquisition of Stem Cell Therapeutics Inc. to Transition Therapeutics Inc.
(TSX:TTH) (NASDAQ:TTHI) ("Transition") in common shares. The final payment of
$1,650,000 was paid by SCT to Transition by issuing 23,272,633 shares, based on
a 10-day average trading price of approximately C$0.07. 


Dr. Alan Moore, President and CEO, commented as follows: 

"This final payment means that we now have complete ownership of the
intellectual property covered under the share purchase agreement. This includes
intellectual property that supports several key programs currently under
development, including our stroke, traumatic brain injury and multiple sclerosis
programs, and provides support for future programs and out-licensing
opportunities. With the completion of this acquisition we have solidified our
position as a leading company developing regenerative therapies for neurological
diseases."


Acquisition of Stem Cell Therapeutics Inc. from Transition Therapeutics Inc.: On
October 4, 2004, SCT entered into a share purchase agreement to acquire all of
the issued and outstanding shares of Stem Cell Therapeutics Inc. (the "Stem Cell
Shares") from Transition. Pursuant to this agreement, SCT agreed to pay
Transition an aggregate purchase price of $3,500,000 as consideration for the
Stem Cell Shares. The purchase price was payable in installments beginning at
closing when the amount of $325,000 was paid and thereafter payments were
required on the anniversary of closing in each of the following four years in
the amounts of $475,000, $400,000, $650,000 and $1,650,000, respectively. All
prior payments have been paid in cash. At the Company's election, the final
payment was made through the issuance of common shares. 


About Stem Cell Therapeutics Corp.: Stem Cell Therapeutics Corp. is a Canadian
public biotechnology company (TSX-V: SSS) focused on the development and
commercialization of drug-based therapies to treat central nervous system
diseases. SCT is a leader in the development of therapies that utilize drugs to
stimulate a patient's own resident stem cells. The Company's programs aim to
repair neurological function lost due to disease or injury. The Company's
extensive patent portfolio of owned and licensed intellectual property supports
the potential expansion into future clinical programs in numerous neurological
diseases such as traumatic brain injury and multiple sclerosis.


These securities have not been registered under the United States Securities Act
of 1933, as amended, or the securities laws of any state, and may not be offered
or sold within the United States or to, or for the account or benefit of U.S.
persons unless an applicable exemption from U.S. registration requirements is
available.


Except for historical information, this press release may contain
forward-looking statements, which reflect the Company's current expectation
regarding future events. These forward-looking statements involve risk and
uncertainties, which may cause but are not limited to, changing market
conditions, the successful and timely completion of clinical studies, the
establishment of corporate alliances, the impact of competitive products and
pricing, new product development, uncertainties related to the regulatory
approval process and other risks detailed from time to time in the Company's
ongoing quarterly and annual reporting.