Ann Arbor, Michigan, October 14, 2003 -- Aastrom Biosciences, Inc. (NasdaqSC: ASTM) today announced the appointment of Herbert S. Schwartz, M.D. to its Technology Review Board (TRB). Dr. Schwartz is Professor of Orthopedics and Rehabilitation, Professor of Pathology and Vice Chair for Research at Vanderbilt University Medical Center (Vanderbilt), where he heads a major U.S. center for orthopedic oncology.

Dr. Schwartz has been at Vanderbilt since 1987, and is currently one of the most senior and experienced full-time academic orthopedic oncologists in the country, one of only 50 such specialists. In addition to his academic responsibilities, Dr. Schwartz' research interests lie in musculoskeletal neoplasia and bioreactors. Dr. Schwartz is the author of multiple publications on the subject of orthopedic oncology, and the recipient of the 2003 Research Appreciation Award for leadership in research. In 2003, he was named president of the Musculoskeletal Tumor Society, the international organization of orthopedic oncologists. Dr. Schwartz received a B.S. from the University of Illinois and an M.D. from the University of Chicago Medical School. He trained in orthopedics at the University of Chicago Hospitals, in orthopedic oncology at the Mayo Clinic, and in cytogenetics and molecular biology at the Mayo Clinic and Vanderbilt.

"Dr. Schwartz' orthopedic expertise in the clinic and the laboratory is an invaluable asset for Aastrom, as we look to develop our Tissue Repair Cell products for the orthopedic area," said R. Douglas Armstrong, Ph.D., President, Chief Executive Officer and Chairman of Aastrom. "His knowledge of both the developmental and practical clinical applications for bone regeneration should provide us with the critical review we seek in our product development process. We are very pleased that Dr. Schwartz has accepted our invitation to contribute his knowledge and experience to our efforts in this field."

Members of Aastrom's TRB serve on a continuing basis to advise the Company on scientific and clinical issues, as well as recommending and reviewing business and marketing opportunities in the tissue regeneration and cell therapy sectors. Dr. Schwartz joins the initial TRB members who have been actively advising Aastrom since May 2002. These industry-leading experts include: Michael Ehrenreich of SOMA Partners, Dr. Armand Keating of Princess Margaret Hospital, Toronto, Dr. Gunnar Kvalheim of the Norwegian Radium Hospital, Norway, Dr. James J. Mule of the H. Lee Moffitt Cancer Center & Research Institute, and Dr. Susan L. Wyant of The Dominion Group. The TRB is chaired by Dr. Steven N. Wolff, Aastrom's head of medical research.

About Aastrom Biosciences, Inc.

Aastrom Biosciences, Inc. (NasdaqSC: ASTM) is a late-stage development company focused on human cell-based therapies. The AastromReplicell™ System - a patented, integrated system of instrumentation and single-use consumable kits for the production of patient-specific cells - is the Company's core technology for its Prescription Cell Products (PCP) business and its Cell Production Products (CPP) business. The principal focus of the PCP business is the repair or regeneration of tissue intended for large markets such as bone grafting, vascular systems and severe osteoporosis. The CPP business markets the AastromReplicell™ System to researchers and companies for their production of cells for clinical trials. These two businesses are intended to enable Aastrom to generate multiple paths to revenue. The initial commercial phase of the CPP business for dendritic cell production products is underway in Europe and the United States. For more information, visit Aastrom's website at www.aastrom.com.

This document contains forward-looking statements, including without limitation, statements concerning product development objectives, product results and potential advantages of the AastromReplicell™ System, which involve certain risks and uncertainties. The forward-looking statements are also identified through use of the words "intended," "should," "seek," 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 actions taken by marketing partners and competitor and the availability of 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.

CONTACTS:

Kris M. Maly or Becky Anderson
Investor Relations Department
Aastrom Biosciences, Inc.
Phone: (734) 930-5777