SAN DIEGO, Dec. 16 /PRNewswire-FirstCall/ -- MicroIslet, Inc. (Amex: MII) announced today an expanded research collaboration with the University of Alberta, Edmonton in the area of human islet cell transplantation therapies for treatment of insulin-dependent diabetes.

Under the terms of the agreement, MicroIslet and University of Alberta scientists will conduct animal studies utilizing MicroIslet's proprietary technologies for encapsulating islet cells that have been isolated from human cadavers. MicroIslet's management believes the successful completion of these joint studies is a prerequisite for future clinical pilot studies of its encapsulation technology in humans.

MicroIslet and University of Alberta scientists are hopeful that the work will be another important step in minimizing the need for immunosuppression in patients who undergo the transplantation of insulin-producing islet cells under the Edmonton Protocol.

The work in Edmonton will be conducted by a group led by Dr. James Shapiro and Dr. Jonathan Lakey, pioneering scientists in the field of human islet transplantation and key leaders of the team that developed the Edmonton Protocol.

As part of this collaboration, MicroIslet will provide financial support and technical assistance to the Edmonton team. The University of Alberta will contribute significant resources, including the transplantation expertise of its scientists and access to its facilities.

This project will be conducted in parallel with MicroIslet's ongoing studies using encapsulated pig islet cells (xenotransplantation) at The Scripps Research Institute in La Jolla, California, and the California Regional Primate Center at the University of California, Davis.

About MicroIslet

MicroIslet is a biotechnology company engaged in the research, development, and commercialization of patented technologies in the field of transplantation therapy for people with insulin-dependent diabetes. MicroIslet's patented islet transplantation technology, exclusively licensed from Duke University, includes methods for isolating, culturing, cryopreservation, and immuno-protection (microencapsulation) of islet cells. MicroIslet is working to develop and commercialize a first product, called MicroIslet-P, a microencapsulated porcine islet cell suspension that will be used for transplantation in patients with insulin-dependent diabetes. Additional information about MicroIslet can be found at www.microislet.com.

Except for the historical information contained herein, the matters set forth in this press release, including the expectation of development of new therapeutic products, and the impact of MicroIslet's products on diabetes patients, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the risks and uncertainties inherent in medical treatment discovery, development and commercialization, the risks and uncertainties associated with MicroIslet's early stage xenotransplantation technologies, the risks and uncertainties of governmental approvals and regulation, MicroIslet's need to raise substantial additional capital to proceed through human clinical trials and bring any product to market, the risks that MicroIslet's competitors will develop or market technologies or products that are more effective or commercially attractive than MicroIslet's products, and other risks detailed from time to time in MicroIslet's most recent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. MicroIslet disclaims any intent or obligation to update these forward-looking statements.

    For more information, please visit our Web site at www.microislet.com.

    For further information, contact:

        Haro Hartounian, Ph.D.
        President and Chief Operating Officer, MicroIslet Inc.
        +1-858-657-0287, info@microislet.com

        Jonathan Lakey, Ph.D.
        Professor of Surgery, University of Alberta, Edmonton
        +1-780-492-3077, jonathan.lakey@ualberta.ca, www.ualberta.ca


SOURCE  MicroIslet Inc.
    -0-                             12/16/2004
    /CONTACT:  Haro Hartounian, Ph.D., President and Chief Operating Officer,
MicroIslet Inc., +1-858-657-0287, info@microislet.com; or Jonathan Lakey,
Ph.D., Professor of Surgery, University of Alberta, Edmonton, +1-780-492-3077,
jonathan.lakey@ualberta.ca/
    /Web site:  http://www.ualberta.ca /
    /Web site:  http://www.microislet.com /
    (MII)

CO:  MicroIslet Inc.; University of Alberta, Edmonton
ST:  California, Alberta
IN:  HEA MTC BIO HED
SU:  JVN SVY

LP-AI 
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8696 12/16/2004 08:00 EST http://www.prnewswire.com