Executive Summary OncoCyte Corp.:

BioTime, Inc. Forms OncoCyte Subsidiary

OncoCyte Corporation is a recently-formed subsidiary of BioTime, Inc.

OncoCyte plans to develop new therapeutics for cancer based upon human embryonic stem (hES) cell technology. Specifically, the Company intends to develop genetically modified stem cells capable of homing to malignant tumors while carrying genes that can cause the destruction of the cancer cells. This therapeutic use of human embryonic stem cells differs from most proposed industrial uses of stem cell technology in that OncoCyte’s goal is not the stable engraftment of the cells to regenerate tissue function, but rather a use of the unique properties of stem cells as a tool to eliminate malignant cells.

Shown below is a simplified depiction of how the technology is anticipated to work.

A) Genetically modified hES-derived hemangioblasts are introduced into a patient with cancer to “seed” the tumor.

B) The gene is activated by a signal such as through a focused beam of X-rays.

C) The activated gene is anticipated to result in the destruction of the tumor, such as through the expression of blood clotting factors or toxins.”

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