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                                                                    Exhibit 99.1

[GRAPHIC OF AASTROM LOGO WITH LETTERHEAD]

FOR IMMEDIATE RELEASE

CONTACTS:  Kris M. Maly or                        Kevin McGrath
           Becky Anderson                         Cameron Associates
           Investor Relations Department          Phone: (212) 245-4577
           Aastrom Biosciences, Inc.
           Phone: (734) 930-5777

                   AASTROM BIOSCIENCES ANNOUNCES INITIATION OF
          CLINICAL TRIAL FOR SINUS LIFT BONE GRAFT PROCEDURES IN SPAIN

                  -- AASTROM'S PROPRIETARY TRCS TO BE UTILIZED
                 TO BUILD NEW BONE TISSUE FOR DENTAL IMPLANTS --

ANN ARBOR, MICHIGAN, OCTOBER 21, 2004 -- Aastrom Biosciences, Inc. (NasdaqSC:
ASTM), and the Institut de Terapia Regenerativa Tissular (ITRT) announced today
that they have initiated patient enrollment in a clinical trial with Instituto
de Cirugia Maxilofacial e Implantologia in Barcelona, Spain to determine the
safety and efficacy of Aastrom's proprietary Tissue Repair Cells (TRCs) in
maxillary sinus lift bone graft procedures necessary for dental implants. The
study is being conducted at Centro Medico Teknon under the direction of
Principal Investigator, Dr. Federico Hernandez-Alfaro.

The trial will target regions in the upper (maxillary) jaw where premature tooth
loss has thinned the bone to such an extent that surgery for tooth replacement
cannot be effectively completed. To address this clinical problem, this new
study will evaluate the ability of TRCs to regenerate and thicken the maxillary
sinus bone needed for a dental implant post. Dental implant surgery can improve
function and dental aesthetics in patients suffering from tooth loss. In the
initial phase of this trial, five patients will be accrued to compare the
outcome of the innovative Aastrom TRC treatment procedure with that of a
standard therapy.

This is the fourth clinical trial initiated by Aastrom to evaluate the safety
and ability of the Company's TRC technology to generate local bone tissue. The
three previously announced studies focus on the use of TRCs to regenerate bone
in severe long bone non-union fractures that had previously failed to heal with
conventional therapies. One of the development objectives intended for TRCs is
to provide an effective way for surgeons to generate or repair local bone tissue
for any bone type, including long bones, spine and facial bones. If this can be
achieved, Aastrom's TRC products may serve as an alternative to autograft, the
invasive and painful procedure of surgically carving out bone tissue from the
hip.

"With four proof-of-concept feasibility clinical trials now underway, we are
diligently working to demonstrate the full value that our TRC technology can
bring to the generation of local bone tissue," said R. Douglas Armstrong, Ph.D.,
Chairman and Chief Executive Officer of Aastrom. "I am proud that our team here
at Aastrom has been able to effectively implement these different studies, which
should establish our strategic position in these major market areas. We are
excited to work in collaboration with Dr. Hernandez-Alfaro and his clinical team
on a highly innovative therapy that has the potential to represent a
breakthrough in maxillofacial bone repair."

ABOUT TISSUE REPAIR CELLS

Tissue Repair Cells (TRCs) are Aastrom's proprietary mixture of bone marrow stem
and progenitor cells produced using patented single-pass perfusion technology in
the AastromReplicell(R) System. The clinical procedure begins with the
collection of a small sample of bone marrow from the patient's hip in an
outpatient setting. TRCs are then produced in the automated AastromReplicell
System over a 12-day period. It has been demonstrated in the laboratory that
TRCs are able to develop into different types of tissue lineages in response to
inductive signals, including blood,

                                     -more-

                                                Aastrom-Sinus Lift-TRC-Barcelona
                                                                October 21, 2004
                                                                          Page 2

bone, cartilage, adipose and vascular tubules. In previous clinical trials, TRCs
have been shown to be safe and reliable in regenerating certain normal healthy
bone marrow tissues.

ABOUT AASTROM BIOSCIENCES, INC.

Aastrom Biosciences, Inc. (NasdaqSC: ASTM) is a regenerative medicine company
developing proprietary adult stem cell-based products for the repair or
generation of damaged human tissues and other medical disorders. Aastrom's
strategic position in the tissue regeneration and cell therapy sectors is
enabled by its proprietary Tissue Repair Cells (TRCs), a mix of bone marrow stem
and progenitor cells, and the AastromReplicell(R) System, an industry-unique
automated cell production platform used to produce cells for clinical use.
Together TRCs and the AastromReplicell System provide a foundation that the
Company is leveraging to produce multiple Prescription Cell Products (PCPs), the
first of which is now in the clinical stage in the U.S. and EU. TRCs are the
core component of the PCPs Aastrom is developing for bone grafting, peripheral
vascular disease, jaw bone reconstruction and spine fusion markets. The Company
has also developed the AastromReplicell System for dendritic cell production for
researchers and institutions developing vaccines to treat cancer and infectious
diseases, under its Cell Production Products line.

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 AND THEIR EXPECTED RESULTS,
PRODUCT DEVELOPMENT OBJECTIVES, POTENTIAL PRODUCT APPLICATIONS, AND POTENTIAL
ADVANTAGES OF THE AASTROMREPLICELL(R) SYSTEM, WHICH INVOLVE CERTAIN RISKS AND
UNCERTAINTIES. THE FORWARD-LOOKING STATEMENTS ARE ALSO IDENTIFIED THROUGH USE OF
THE WORDS "INTENDED," "MAY," "POTENTIAL," "SHOULD," "CAN," 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 THE UNCERTAINTIES OF 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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