Ann Arbor, Michigan, June 20, 2005 -- Aastrom Biosciences, Inc. (Nasdaq: ASTM) announced today the appointment of Gerald ("Jerry") D. Brennan, Jr., JD, as Vice President Administrative and Financial Operations and Chief Financial Officer. Mr. Brennan will assume his position with the Company effective July 2, 2005, following the retirement of Alan M. Wright, Aastrom's current CFO and Senior Vice President Administrative and Financial Operations.

Mr. Brennan brings almost two decades of strong financial and operational expertise to Aastrom, gained from his experience in senior management level positions. He will come to the Company from Great Lakes Chemical Corporation, where he serves as Director New Ventures, and previously served as Chief Financial Officer of Great Lakes Fine Chemical Division and Monsanto Pharma Tech. Prior to that time, Mr. Brennan was Chief Financial Officer and Chief Operating Officer of Capcom Coin-Op, Inc., and he served in various management positions at Tupperware including Vice President of Distributor Operations and Administration for Tupperware North America, President of Tupperware Canada and General Counsel of Tupperware Worldwide. He has also served as Tax Counsel at Premark and as a Tax Manager at Coopers & Lybrand. Mr. Brennan holds a BSBA in Accounting and Business Economics, from Marquette University, and a JD from the University of Illinois. Mr. Brennan is a member of the Illinois Bar, and is a Certified Public Accountant in the State of Illinois.

"We are pleased to welcome Jerry Brennan to Aastrom. Jerry brings a number of new financial, administrative and legal capabilities to our management team, along with an extensive background of applicable experience," said R. Douglas Armstrong, Ph.D., Chairman and Chief Executive Officer. "As we continue to progress with the clinical development of our Tissue Repair Cell products in the United States and the EU, his broad knowledge of and familiarity with developmental business and financial strategies, product commercialization, and global distribution will be invaluable assets to the Company."

Alan M. Wright, who has been with the Company since 2000, is retiring from Aastrom. Mr. Wright first served as a member of Aastrom's Board of Directors, and was later appointed as an officer and member of the executive management team. He will continue to serve Aastrom as a consultant to assist with the effective transition and orientation of Mr. Brennan.

About Aastrom Biosciences, Inc.

Aastrom Biosciences, Inc. (Nasdaq: ASTM) is developing patient-specific products for the repair or regeneration of human tissues, utilizing the Company's proprietary adult stem cell technology. Aastrom's strategic position in the tissue regeneration sector is enabled by its proprietary Tissue Repair Cells (TRCs), a mix of bone marrow-derived adult stem and progenitor cells, and the AastromReplicell® System, an industry-unique automated cell production platform used to produce cells for clinical use. TRCs are the core component of the products Aastrom is developing for severe bone fractures, ischemic vascular disease, jaw reconstruction and spine fusion, with Phase I/II level clinical trials active in the U.S. and EU for some of these indications.

For more information, visit Aastrom's website at www.aastrom.com.

This document contains forward-looking statements, including without limitation, statements concerning planned clinical trials, product development objectives, potential product applications, and potential advantages of Tissue Repair Cells (TRCs) and the AastromReplicell® System, which involve certain risks and uncertainties. The forward-looking statements are also identified through use of the word "plan," and other words of similar meaning. Actual results may differ significantly from the expectations contained in the forward-looking statements. Among the factors that may result in differences are clinical trial results, potential product development difficulties, the effects of competitive therapies, regulatory approval requirements, the availability of financial and other resources and the allocation of resources among different potential uses. These and other significant factors are discussed in greater detail in Aastrom's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.

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Aastrom Biosciences, Inc.
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