Today´s announcement extends a two-year agreement signed by the companies in July 2006 to explore whether cells taken from established human embryonic stem cell lines could be differentiated into functioning human hepatocytes and myocyctes. With further improvements in differentiation technologies, scientists will be able to better predict drug metabolism and potential liver and cardiac adverse side effects in humans much earlier in the drug discovery process, thus streamlining the drug development process and bringing safer medicines to the patient.

"Our collaboration with AstraZeneca now enters an exciting phase and we are delighted to
announce its extension," said Mats Lundwall, Cellartis CEO. "We continue to validate our
reputation as a leading player in the hESC arena through such deals. Given AstraZeneca´s
position as a leading pharmaceutical company, we are rightly optimistic and enthusiastic about the continued development of hESC as a key technology of choice across a range of R&D applications."

“If we can successfully and reliably create a consistent supply of differentiated embryonic stem cells, we will be able to more accurately detect side effects for new drugs while still in the discovery process," said Jan Lundberg, Executive Vice President of Discovery for AstraZeneca.

“Such a breakthrough could improve R&D productivity by reducing attrition rates and ultimately lead to safer medicines for patients . While significant scientific hurdles remain, we are making good progress and gaining valuable experience."

About AstraZeneca
AstraZeneca is a major international healthcare business engaged in the research,
development, manufacturing and marketing of meaningful prescription medicines and supplier for healthcare services. AstraZeneca is one of the world's leading pharmaceutical companies with healthcare sales of US$ 31.6 billion and is a leader in gastrointestinal, cardiovascular, neuroscience, respiratory, oncology and infectious disease medicines. For more information about AstraZeneca, please visit: www.astrazeneca.com

About Cellartis
Cellartis AB is a premier provider of human embryonic stem cell (hES) derived products and
technologies which will drive unprecedented innovation in drug discovery and regenerative
medicine today and in the future. Today, alongside fully characterised, ethically derived human embryonic stem cell lines, the company offers custom prepared human cardiomyocytes and mesenchymal progenitors derived from hES cells along with stem cell antibodies and tools. Cellartis is engaged in programmes for the production of homogenous populations of hepatocytes suitable for use as bio-tools in industrial applications. In addition, Cellartis has built the world's first large-volume automated production facility for human ES cells and can provide human ES cells for screening campaigns. The company was founded in 2001, has over 50 employees and is located in Gothenburg Sweden and Dundee, Scotland.
For more information, please visit www.cellartis.com