Ann Arbor, Michigan, and Berlin, Germany, December 9, 2004 -- Aastrom Biosciences, Inc. (NasdaqSC: ASTM) and Zellera AG (Zellera), its wholly-owned subsidiary, today announced that Gunter Rosskamp, Ph.D. has been appointed as Managing Director of Zellera, located in Berlin, Germany. Aastrom is currently in clinical studies in the U.S. and the EU, utilizing its lead adult stem cell-based Tissue Repair Cell (TRC) product for tissue regeneration applications. Zellera, now under the direction of Dr. Rosskamp, supports Aastrom in its ability to target opportunities for research and development collaboration in the EU, and the identification of commercial markets for its products and business.

"Our clinical and commercial development programs in Europe are a key part of Aastrom's business plan," said R. Douglas Armstrong, Ph.D., Chief Executive Officer and Chairman of Aastrom. "Dr. Rosskamp's extensive experience in the European medical products community, and in the development of new medical products and business relationships, should provide the leadership necessary for Zellera to effectively support Aastrom's business plan in the EU, which is targeted to be the first marketplace for our tissue regeneration products."

Dr. Rosskamp has worked almost 30 years in the pharmaceutical, biotechnology and life sciences industries, after receiving his academic training in toxicology and the life sciences. Prior to joining Zellera, he held management and executive positions with Schering AG and the Industrial Investment Council, Berlin, and served as CEO at Revotar Biopharmaceuticals AG, Berlin. Dr. Rosskamp has also been very involved in the German life science arena and venture capital network.

Upon his appointment, Dr. Rosskamp commented, "Having previously been engaged in most phases of the pharmaceutical research and development value chain for conventional pharmaceutical products, I am excited to participate in the application and development of Aastrom's innovative and proprietary adult stem cell-based therapies and their potential curative benefits for patients."

Dr. Rosskamp can be reached at Zellera's office in Berlin by phone at 49-30-20659-164, and by email at Rosskamp.Zellera@t-online.de.

About Aastrom Biosciences, Inc.

Aastrom Biosciences, Inc. (NasdaqSC: ASTM) is a regenerative medicine company developing treatments for the repair of damaged human tissues and other medical disorders, or the generation of normal human tissues, utilizing the Company's proprietary adult stem cell-based products. 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® 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), which are 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 product development objectives, and potential product applications, which involve certain risks and uncertainties. The forward-looking statements are also identified through use of the words "plan," "potential," "should," "targeted," 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 future clinical trial results, regulatory approval requirements, 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

Kevin McGrath
Cameron Associates
Phone: (212) 245-4577