Newsletter

September 21, 2006

Volume VII, Issue 72

Home Page : www.otcjournal.com
Email Questions or Comments To: editor@otcjournal.com

To OTC Journal Members:

Comments in the BLOG

There was a new BLOG posting this week on HDY. For those who remember that special situation, the news looks reasonably promising. Monday's BLOG forecasting the break out of CPNE proved prophetic, and the stock is now holding onto the $1.40 level- a new multi month high. I believe a new all time high north of $2 is a fait accompli- read the BLOG for my thoughts.

If you like the way CPNE, my best ecommerce idea is trading, you might love this weekend's edition on my next ecommerce idea. It's akin to CPNE earlier this year when it was just starting to make its big move.

The BLOG is your opportunity to ask questions and offer comments. I will make an effort to answer every legitimate question. If I don't know the answer, I will contact the management and get the answer. Alternatively, if you have questions you don't want publicly displayed, you can always email me directly at editor@otcjournal.com.

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG will scroll down automatically on the right side of your screen. The most current journal entries appear in the middle of your screen. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels in volatile markets.

How Do You Make A Blind Rat See?

Answer- inject him with a Stem Cell therapy developed by the scientists and Advanced Cell.

ACTC was out with more news today on their scientific developments, and this stuff is just mind boggling to me. Here's a quick refresher: ACTC is working on Stem Cell therapies in 3 areas: 1. Dermal Repair (restoring skin that has been burned or diseased) 2. Heart Disease (repairing a damaged heart), and 3. Macular Regeneration (vision restoration for those with degenerative vision problems). The company believes these are three areas it can coax stem cells to "differentiate"- anotherwords become healthy cells that replace damaged or diseased cells.

Today, ACTC announced the results of a study that was performed by Raymond D. Lund, Ph.D., Professor at the Moran Eye Center, University of Utah Health Science Center, and the results just fascinate me.

Some rats are born with a condition that causes them to lose their photoreceptor cells. The rats go blind several months after birth. This condition is very similar to macular degeneration in humans.

A study was conducted using Stem Cells from one of the 18 NIH approved fetal stem cell lines- those are the fetal stem cell lines that existed prior to the current Bush administration moratorium on the creation of more fetal stem cell lines.

The rats were injected with the stem cells into the subretinal space of the eye at 21 days after their birth, prior to any vision loss. There were three groups in the study. Two different treatment groups, and one untreated control group were included.

The rats that received the most agressive treatment got the best result. The most aggressively treated rats enjoyed 70% of normal vision 100% of the time. The less agressively treated rats got the same result 50% of the time, and the untreated rats simply went blind.

In short, ACTC just demonstated their technology can make a rat who would have gone blind normally see about 70% as well as a rat with healthy vision.

According to the press release, the retinal pigment epithelium cells which become problematic in rats closely resemble the same cells in humans. Scientists at ACTC are working towards developing a therapy to treat humans with this technology as a basis.

I find this kind of research mind boggling, and helps bolster all the reasons to be a long term shareholder in this stock. Imagine the implications of a treatment for macular degeneration- how can you not own the stock if you like to speculate on early stage companies?

The chart shows a stock that is inclining very gradually. It traded another three million shares today. I'm not going to make a technical forecast. It's too tough. As you all know who read the OTC Journal regularly, there are times when I can use the charts to forecast breakouts. Most of the time, when I forecast a breakout, it happens. It's just a question of whether it holds. ACTC is a different breed of cat. In this case, I recommend you just find $5,000, or whatever number makes you comfortable, that you can speculate with for the long term. Find it in an old IRA or something of this like. Invest in this stock, and forget about it for a year or two. When it goes crazy, I'll let you know. If it never does, it never does. That's the nature of speculation. You will own shares in a company that is performing some important work that could have a major effect on the way diseases are treated.

Here is today's news release in case you didn't catch it:

Press Release Source: Advanced Cell Technology, Inc.

Advanced Cell Technology Reports Visual Function Rescue in Animals Utilizing Human Embryonic Stem Cell-Derived Retinal Cells

Thursday September 21, 7:00 am ET

Transplanted Cells Shown Capable of Rescuing Photoreceptor Cells in RCS Rats with Retinal Disease

WORCESTER, Mass.--(BUSINESS WIRE)--Sept. 21, 2006--Advanced Cell Technology, Inc. (OTCBB: ACTC.OB - News) today announced that company scientists and their collaborators rescued visual function in rats through implantation of retinal pigment epithelial cells (RPE) derived from human embryonic stem (hES) cells. The study results were reported in a paper entitled "Human Embryonic Stem Cell-Derived Cells Rescue Visual Function in Dystrophic RCS Rats" published online today ahead of print in the Fall 2006 issue of the journal Cloning and Stem Cells.

In a series of several experiments, researchers generated RPE cells from 18 different hES cell lines. Cells derived from one of the NIH-approved cell lines were injected into RCS rats in an attempt to compensate for the photoreceptor cell loss caused by a genetic trait carried by such RCS rats. These animals lose their photoreceptor cells over several months following birth and are used to study conditions under which this loss, similar to that occurring in macular degeneration, can be prevented or treated.

In the study published in Cloning and Stem Cells, rats were injected with hES- derived RPE cells into the subretinal space of the eye at 21 days after their birth, an age at which photoreceptor degeneration has not yet occurred. As controls, some rats received injections of cell culture medium alone, or were not injected. Tests for visual function were performed at 60 and 90 days after birth, times at which loss of photoreceptor cells has produced characteristic vision deficits. As more fully described in the paper, test results of relative visual acuity demonstrated that animals receiving hES-derived RPE cells performed significantly better than cell culture medium treated or untreated controls. Treated animals showed a 50 percent improvement over medium-treated controls and a 100 percent improvement over untreated controls in visual performance. Visual acuity was approximately 70 percent of normal rats.

"One important advantage offered by hES-derived cells over other cells developed to mimic or replace lost retinal pigment epithelium is that they more closely resemble primary human RPEs," stated Raymond D. Lund, Ph.D., Professor at the Moran Eye Center, University of Utah Health Science Center, Salt Lake City and the study's lead author. "Another significant advantage of using these cells is that a range of lines can be derived allowing the opportunity to 'tissue match' donor cells with recipient, a real advantage given that RPE cells are highly immunogenic and susceptible to rejection without some form of immunosuppression."

"Embryonic stem cells promise to provide a well-characterized and reproducible source of replacement cells for clinical studies," stated Robert Lanza, M.D., Vice President of Research & Scientific Development at ACTC and senior author of the paper. "All 18 human embryonic stem cell lines we studied reliably produced retinal cells that could potentially be used to treat retinal degenerative diseases, such as macular degeneration. We showed that these cells have the capacity to rescue visual function in animals that otherwise would have gone blind. Importantly, the cells did not appear to cause any unwanted pathological responses in the animals following transplantation."

"We are working to generate clinical grade RPE cells from human embryonic stem cells under controlled GMP conditions," said Irina Klimanskaya, Ph.D., Director of Stem Cell Biology at ACTC, and the author who initiated this work. "However, more research is still required to optimize their performance and to assure they are safe for clinical trials."

"We are encouraged by this data related to our retinal program and are focused on driving therapies to the clinic," stated William M. Caldwell IV, CEO of ACTC.

Other authors include Shaomei Wang, Toby Holmes, Bin Lu, N. Bischoff, and Sergej Girman of the Moran Eye Center; Rebeca Ramos-Kelsey of Advanced Cell Technology, and Yves Sauve of the Ophthalmology and Physiology Dept., University of Alberta, Edmonton.

About Advanced Cell Technology, Inc.

Advanced Cell Technology Inc. is a biotechnology company applying embryonic stem cell technology in the emerging field of regenerative medicine. The company operates facilities in Alameda, California and Worcester, Massachusetts. For more information about the company, please visit http://www.advancedcell.com..

Forward-Looking Statements

Statements in this news release regarding future financial and operating results, future growth in research and development programs, potential applications of our technology, opportunities for the company and any other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "will," "believes," "plans," "anticipates," "expects," "estimates," and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: limited operating history, need for future capital, risks inherent in the development and commercialization of potential products, protection of our intellectual property, and economic conditions generally. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in the company's periodic reports, including the report on Form 10-QSB for the quarter ended June 30, 2006.

Forward-looking statements are based on the beliefs, opinions, and expectations of the company's management at the time they are made, and the company does not assume any obligation to update its forward-looking statements if those beliefs, opinions, expectations, or other circumstances should change.

Contact:

Media:
FD, Healthcare and Life Sciences
Robert Stanislaro, 212-850-5657
or
Investors:
The Investor Relations Group
James Carbonara, 212-825-3210

Source: Advanced Cell Technology, Inc.

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