Aastrom Biosciences Reports Fourth Quarter and Fiscal Year 2009 Financial Results

* U.S. Phase II cardiac regeneration clinical trial:

-- On May 5, 2009 we reported that preliminary findings from our
U.S. Phase II IMPACT-DCM clinical trial to treat dilated
cardiomyopathy (DCM) with our Cardiac Repair Cells (CRCs) were
presented at the International Society for Cellular Therapy
annual meeting by the study's National Lead Investigator, Dr.
Amit N. Patel. IMPACT-DCM is the first clinical trial in the
U.S. to evaluate the surgical delivery of autologous cells
directly into the human heart muscle for the treatment of
congestive heart failure associated with DCM in both ischemic
and non-ischemic patients.

* Three treatment group patients have completed the 3-month
follow-up visit; all of these patients improved from New York
Heart Association (NYHA) class III to class II. This
represents clinically meaningful improvement in these patients.
In contrast, the NYHA class did not improve in 2 of 3 control
group patients.

* Overall quality of life scores improved in all treatment group
patients based on the Minnesota Living with Heart Failure
Questionnaire. Physical and emotional well-being of all
treatment patients also improved based on patient responses to
this questionnaire. There were no consistent trends in the
control group patients.

* No CRC-related serious adverse events were reported in any of
the 4 treatment group patients who have completed at least
their 1-month follow-up visit.

-- To date, the trial has enrolled 21 patients at the following
sites:

* Methodist DeBakey Heart & Vascular Center in Houston, TX
* Baylor University Medical Center in Dallas, TX
* University of Utah School of Medicine in Salt Lake City, UT
* Cleveland Clinic Heart and Vascular Institute in Cleveland, OH,
and
* Emory University Hospital Midtown in Atlanta, GA

-- The 40-patient, randomized, controlled, prospective, open-label,
multi-center clinical trial seeks to enroll 20 patients with
ischemic DCM and 20 patients with non-ischemic DCM.

* U.S. Phase IIb vascular regeneration clinical trial:

-- To date, our U.S. Phase IIb RESTORE-CLI clinical trial has
enrolled 73 patients (treatment and placebo control). This
clinical trial is evaluating Vascular Repair Cells (VRCs) in the
treatment of patients suffering from the most severe form of
peripheral arterial disease (PAD), a condition known as critical
limb ischemia (CLI).

-- The 150-patient, prospective, controlled, randomized, double-
blind, multi-center clinical trial seeks to enroll patients
suffering from CLI, the end stage of peripheral arterial disease.

* Compassionate-Use Bone Repair Cell (BRC) treatments in Spain:

-- In an oral presentation in Dalian, China on August 10, 2009, Dr.
Jose Mendonca, Director of the Head and Neck Surgery Unit of
Hospital POLUSA in Lugo, Spain and previously a Clinical and
Research Fellow in Oral and Maxillofacial Surgery at the UCLA
School of Dentistry, reviewed the results of treatment with BRCs
in three compassionate-use patients with craniofacial defects,
as follows:

* These patients each presented with different craniofacial
defects; all of the patients demonstrated formation of new
bone 12 months post-BRC treatment.

* All patients underwent a minor surgery to insert a dental
implant into the newly regenerated jaw bone. Eight weeks
later, the dental prosthesis (teeth) was attached to the
implant completing the treatment objectives with the
restoration of oral function.

* NASDAQ compliance period extended:

-- On July 13, 2009, the Listings Qualifications Department of the
NASDAQ Stock Market LLC (NASDAQ) notified us that it was
extending the suspension related to enforcing the rules
requiring a minimum $1.00 per share closing bid price and a
minimum market value of publicly held shares until July 31, 2009.

-- As a result of NASDAQ further extending the suspension and the
balance of 60 days remaining on our pending compliance period at
the time of the initial suspension, we now have until October 1,
2009 to regain compliance with the $1.00 minimum closing bid
price rule in order to remain listed on the NASDAQ Capital
Market.

-- If we do not regain compliance during the remainder of our
compliance period, NASDAQ will provide written notice that our
securities will be delisted from the NASDAQ Capital Market. At
such time, we intend to appeal the determination to a NASDAQ
Listing Qualifications Panel by requesting an oral hearing. A
request for a hearing allows us to remain listed on the NASDAQ
Capital Market pending the decision of the NASDAQ Hearing Panel.

-- Our objective is to preserve our NASDAQ listing. The plan to
regain compliance with the minimum $1.00 per share closing bid
price will be presented to a NASDAQ Hearing Panel as part of
this process.

* Fusion Capital common stock purchase programs:

-- On June 12, 2009, we executed a new $30 million common stock
purchase program with Fusion Capital Fund II, LLC (Fusion
Capital). We have the right, over a 25-month period, to sell up
to 36 million shares of our common stock to Fusion Capital from
time to time in amounts between $100,000 and $4 million, up to
an aggregate of $30 million, when we choose to do so, based on
the terms of the agreement. This financing program commenced on
July 1, 2009; through September 9, 2009 we have issued
10,328,479 shares to Fusion Capital (including 1,714,448
commitment shares) for net proceeds of $3.3 million.

-- On April 29, 2009, we completed a previous common stock purchase
program with Fusion Capital. Over the duration of this program,
we issued 25,742,816 shares to Fusion Capital (including
3,050,152 commitment shares) for net proceeds of $8.6 million.

* Executive management transition process:

-- On September 3, 2009, we announced an executive management
process that will strengthen and expand the senior leadership
team over the next several months

* George W. Dunbar, currently Chief Executive Officer,
President, Chief Financial Officer and a Director of Aastrom,
will transition out of day-to-day management and is expected
to assume the role of Chairman of the Board immediately after
the Company's Annual Meeting of Shareholders, currently
planned for December 14, 2009. In this role he will continue
to advise the Company on key financial and strategic
development initiatives.

* Timothy M. Mayleben, a member of the Company's Board of
Directors, will remain a Director and will become the new
Chief Executive Officer, President and CFO at the time Mr.
Dunbar steps down from those positions in December 2009.

* Nelson M. Sims, who has served as Chairman of the Board of
Directors since October 2008, is expected to assume the role
of Lead Director.

* Messrs. Dunbar, Mayleben and Sims intend to work together
during the transition process to provide continuity and assure
a smooth transition of responsibilities.

* Cardiac Regeneration:

-- IMPACT-DCM clinical trial's National Lead Investigator, Amit N.
Patel, MD, to present interim data as keynote speaker at the
American Heart Association Scientific Sessions 2009 in November
2009.

-- We anticipate that patient enrollment in IMPACT-DCM trial will
be completed by the end of December 2009.

-- We expect to analyze preliminary 6-month interim data on all 40
IMPACT-DCM patients mid-year calendar 2010.

* Vascular Regeneration:

-- During the 4th quarter of calendar year 2009, we expect to
unblind and analyze the interim clinical data from patients
enrolled in the RESTORE-CLI study, including the first 30
patients who have completed their 12 month follow-up visit.

-- We anticipate reporting interim clinical data from RESTORE-CLI
patients during the first quarter of calendar year 2010.

AASTROM BIOSCIENCES, INC.
(in thousands, except per share amounts)

CONSOLIDATED STATEMENT OF OPERATIONS DATA:

Quarter ended Year ended
June 30, June 30,
------------------ ------------------
2008 2009 2008 2009
-------- -------- -------- --------
(Unaudited)

REVENUES:
Total revenue $ 149 $ 69 $ 522 $ 182
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COSTS AND EXPENSES:
Cost of product sales and
rentals 25 65 56 112
Research and development 3,449 2,949 15,249 11,289
Selling, general and
administrative 1,668 1,041 6,436 4,950
-------- -------- -------- --------
Total costs and expenses 5,142 4,055 21,741 16,351

OTHER INCOME (EXPENSE):
Interest income 153 43 1,170 296
Interest expense (23) (15) (84) (73)
-------- -------- -------- --------
Total other income 130 28 1,086 223
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NET LOSS $ (4,863) $ (3,958) $(20,133) $(15,946)
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NET LOSS PER SHARE
(Basic and Diluted) $ (.04) $ (.03) $ (.16) $ (.11)
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Weighted average number of
common shares outstanding 132,761 158,306 129,120 143,016
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CONSOLIDATED BALANCE SHEET DATA:

June 30,
2009
--------
ASSETS:
Cash and cash equivalents $ 17,000
Receivables, net 58
Inventories 1
Other current assets 732
Property, net 1,485
--------
Total assets $ 19,276
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LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities $ 1,687
Long-term debt 305
Shareholders' equity 17,284
--------
Total liabilities and shareholders' equity $ 19,276
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Cameron & Associates
Investors
Kevin McGrath
(212) 245-4577

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Media
Stephen Zoegall
(212) 253-8881