Cellular Biomedicine Group Reports Second Quarter and First Half 2015 Financial Results and Business Highlights

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1 Cellular Biomedicine Group Reports Second Quarter and First Half 2015 Financial Results and Business Highlights SHANGHAI, China and PALO ALTO, Calif., August 14, 2015 /GlobeNewswire/ - - Cellular Biomedicine Group Inc. (NASDAQ: CBMG) ( CBMG or the Company ), a biomedicine firm engaged in the development of effective stem cell therapies for degenerative diseases and immunotherapies for cancer, today reported financial results and business highlights for the quarter and six months ended June 30, "I am pleased with our second quarter progress in reaching certain planned milestones and in strengthening both our business and technological advantages, said Dr. William (Wei) Cao, Chief Executive Officer of Cellular Biomedicine Group. In addition to our international- standard Shanghai GMP facility passing its 4th consecutive China Food and Drug Administration (CFDA) inspection, we are expanding our GMP coverage with another 15,000 square feet site in Beijing, our third GMP facility. We are also delighted to have industry veterans Richard Wang Ph.D. join us as Chief Operating Officer, and Yihong Yao, Ph.D., join us as Chief Scientific Officer. I m proud of our team achieving several accolades comprised of publication on the use of human adipose- derived progenitor cells (hampcs) demonstrating efficacy in a rabbit OA model for treating knee osteoarthritis (KOA) in a peer- reviewed scientific journal, and dissemination of positive Phase I clinical data on the Chimeric Antigen Receptor T- cell (CAR- T) immuno- oncology clinical development programs: CD19 for Acute Lymphocytic Leukemia (B- cell ALL); and CD20 for Advanced Diffuse Large B Cell Lymphoma (DLBCL), and; CD30 for Hodgkin s lymphoma. We have confirmed that the trials are safe and remain optimistic about their potential disease efficacy. Furthermore, we added the CD40LGVAX cancer vaccine targeting Non Small Cell Lung Cancer (NSCLC) to our portfolio. We believe the Company is well positioned as a leader in degenerative and cancerous therapies to serve the large patient population, concluded Dr. William (Wei) Cao, Chief Executive Officer of Cellular Biomedicine Group. In addition to CBMG s NASDAQ upgrade to the higher tiered Global Markets, I am pleased that we are now part of the broad- market Russell 3000 Index which will increase visibility with institutional investors across key financial markets, commented Tony (Bizuo) Liu, Chief Financial Officer of the Company. We believe that health care is a universally defensive sector and CBMG is now equipped to deliver on our clinical milestones and to build a world- class biotechnology firm focused on providing solutions that address large unmet global medical needs. Second Quarter and First Half 2015 Financial Performance 1. Cash Position: Cash and cash equivalents as of June 30, 2015 were $23.7 million compared to $14.8 million as of December 31, Our cash position increased as we had an increase in cash generated from financing activities due to a private placement financing in March 2015 for aggregate gross proceeds of approximately $19,600,000 through the sale of 515,786 shares of Common Stock, partially offset by an increase in cash used in operating activities.

2 2. Net Cash Used in Operating Activities: Net cash used in operating activities for the quarter and six months ended June 30, 2015 was $3.3 million and $5.7 million, respectively, compared to $2.3 million and $4.7 million for the same periods in Revenue: Revenues for the quarter and six months ended June 30, 2015 were $0.7 million and $1.3 million, respectively, compared to $0.1 million and $0.2 million for the same periods in In late 2014, with the acquisition of AG, we started generating revenue from technology services. All the revenue was derived from technology services for the three months ended June 30, 2015, while revenue was solely from sales of A- Stromal TM kits during the same period in G&A Expenses: General and administrative expenses for the quarter and six months ended June 30, 2015 were $3.8 million and $6.4 million, respectively, compared to $1.6 million and $3 million for the same periods in Increased expenses in the three months ended June 30, 2015 was associated with increased corporate activities related to the management and the development of our biomedicine business and was primarily attributed to the below facts: An increase in stock- based compensation expense of $1,172,000, which primarily resulted from the new grants and higher fair value of unvested options after the Company listed on Nasdaq in June 2014 compared with those unvested options as of June 30, 2014; An increase in depreciation and amortization of $180,000, which was mainly attributed to the technology and patents obtained from the acquisition of AG in third quarter 2014; An increase in rental expenses of $144,000, which was mainly attributed to the new lease agreement concluded for the construction of the Beijing GMP; and An increase in legal, accounting and other professional services of $465, R&D Expenses: Research and development expenses for the quarter and six months ended June 30, 2015 were $1.3 million and $2.8 million respectively, compared to $0.7 million and $1.3 million for the same periods in Research and development costs increased by approximately $603,000 in the three months ended June 30, 2015 as compared to the three months ended June 30, 2014 due primarily to an increase of our immunotherapy research and development team, which resulted in an increase in payroll expenses of $217,000; an increase in stock- based compensation expenses of $284,000 and an increase in rental of $34, Net Loss: Net loss allocable to common stock holders for the quarter and six months ended June 30, 2015 was $5 million and $9.3 million respectively, compared to $6.7 million and $7.1 million for the same periods in Changes in net loss are primarily attributable to changes in operations of our biomedicine segment and the discontinued consulting segment. During and since the second quarter of 2015, Cellular Biomedicine Group strengthened its position as a leading pure- play biotechnology company by achieving the following milestones and significant events: Business Highlights Appointment of Richard L. Wang, Ph.D., MBA, PMP as Chief Operating Officer Appointment of Yihong Yao, Ph.D., B.S. as Chief Scientific Officer Appointment of Alan List, M.D. as Chair of the Scientific Advisory Board Acquisition of Blackbird Bio Finance and University of South Florida s next generation GVAX vaccine s (CD40LGVAX) related technologies and technical knowledge Selected to be included in the broad- market Russell 3000 Index Publication of the use of human adipose- derived progenitor cells (hampcs) demonstrating efficacy in a rabbit OA model for treating knee osteoarthritis (KOA) in peer- reviewed scientific journal International Journal of Molecular Sciences Technology Achievements Received two new certifications from the China Food and Drug Administration (CFDA) for each of its proprietary cell and tissue preservation media kits Announced positive Phase I Results From CAR- T CD30 Immuno- Oncology Clinical Development Program, demonstrating the trial to be safe, feasible and efficacious

3 Upcoming Events In the next twelve months the Company aims to accomplish the following significant milestones: Complete the preclinical GLP safety evaluation studies of hampc for Asthma and Chronic Obstructive Pulmonary Disease Evaluate the feasibility of sponsoring a Phase I/II clinical study to support the New Drug Application (NDA) for the U.S. CD40LGVAX trial Publish Phase I clinical trial results for CAR- T EGFR- HER1- positive for advanced lung cancer Publish ReJoin TM KOA Phase IIb twelve- month data Obtain approval for pending Patent Cooperation Treaty ( PCT ) patents Develop a strategy to prioritize and launch cancer immune cell therapy clinical trials Launch Phase II trials to explore the efficacy and safety of CD19 or CD20 CAR- T mono or combination therapies in chemo refractory/relapsing patients with hematological malignancies Prepare preclinical package to apply for clinical trial of allogeneic hampc therapy for COPD/Asthma About Cellular Biomedicine Group Cellular Biomedicine Group, Inc. develops proprietary cell therapies for the treatment of certain degenerative and cancerous diseases. Our developmental stem cell and Immuno- Oncology projects are the result of research and development by scientists and doctors from China and the United States. Our flagship GMP facility in China, consisting of six independent cell production lines, is designed, certified and managed according to U.S. standards. To learn more about CBMG, please visit: Forward- Looking Statements Statements in this press release relating to plans, strategies, trends, specific activities or investments, and other statements that are not descriptions of historical facts may be forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward- looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include risks inherent in doing business, trends affecting the global economy, including the devaluation of the RMB by China in August 2015 and other risks detailed from time to time in CBMG s reports filed with the Securities and Exchange Commission, quarterly reports on form 10- Q, current reports on form 8- K and annual reports on form 10- K. Forward- looking statements may be identified by terms such as "may," "will," "expects," "plans," "intends," "estimates," "potential," or "continue," or similar terms or the negative of these terms. Although CBMG believes the expectations reflected in the forward- looking statements are reasonable, they cannot guarantee that future results, levels of activity, performance or achievements will be obtained. CBMG does not have any obligation to update these forward- looking statements other than as required by law.

4 CELLULAR BIOMEDICINE GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 30, December 31, Assets Cash and cash equivalents $23,651,084 $14,770,584 Accounts receivable 445, ,029 Other receivables 453, ,957 Inventory 400, ,249 Prepaid expenses 551, ,299 Other current assets - 110,347 Total current assets 25,501,440 16,095,465 Investments 14,819,407 6,886,033 Property, plant and equipment, net 1,322,099 1,280,410 Goodwill 7,678,789 7,678,789 Intangibles, net 16,817,661 11,156,676 Long-term prepaid expenses and other assets 915, ,729 Total assets $67,054,852 $43,685,102 Liabilities and Stockholders' Equity Liabilities: Accounts payable $106,612 $426,917 Accrued expenses 2,927,200 2,074,384 Taxes payable 640, ,288 Advances payable to related party - 36,254 Other current liabilities 1,543, ,479 Total current liabilities 5,217,951 4,076,322 Other non-current liabilities 240, ,689 Total liabilities 5,458,399 4,529,011 Stockholders' equity: Preferred stock, par value $.001, 50,000,000 shares authorized; none issued and outstanding as of June 30, 2015 and December 31, 2014, respectively - - Common stock, par value $.001, 300,000,000 shares authorized; 11,610,665 and 10,990,335 issued and outstanding as of June 30, 2015 and December 31, 2014, respectively 11,611 10,990 Additional paid in capital 99,095,398 75,467,316 Accumulated deficit (47,204,236) (37,890,590) Accumulated other comprehensive income (loss) 9,693,680 1,568,375 Total stockholders' equity 61,596,453 39,156,091 Total liabilities and stockholders' equity $67,054,852 $43,685,102

5 CELLULAR BIOMEDICINE GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Six Months Ended June 30, CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(9,313,646) $(7,120,794) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 928, ,015 Loss on disposal of assets - 10,358 Stock based compensation expense 3,618, ,622 Amortisation of deferred stock compensation - 63,518 Other than temporary impairment on investments 123,428 - Realized losses from sale of investments 5,178 5,913 Value of stock received for services - (1,610,000) Impairment of goodwill - 3,299,566 Changes in operating assets and liabilities: Accounts receivable (304,173) (13,419) Other receivables (222,716) 15,452 Inventory (27,839) (37,371) Prepaid expenses (8,427) (245,901) Other current assets 110,347 - Investments - 7,150 Long-term prepaid expenses and other assets (73,031) (498,888) Accounts payable (320,305) (104,794) Accrued expenses 112, ,889 Advance payable to related party (30,216) - Other current liabilities 88,991 (110,980) Taxes payable (173,739) - Other non-current liabilities (212,265) - Net cash used in operating activities (5,699,806) (4,722,664) CASH FLOWS FROM INVESTING ACTIVITIES: Proceed from sale of investments, net of transaction costs 1,480 - Purchases of intangible assets (4,385,940) - Purchases of property, plant and equipment (224,826) (77,537) Net cash used in investing activities (4,609,286) (77,537) CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from the issuance of common stock 18,964,849 11,221,956 Proceeds from exercise of stock options 234,599 - Repayment of advance from affiliate - (33,528) Net cash provided by financing activities 19,199,448 11,188,428 EFFECT OF EXCHANGE RATE CHANGES ON CASH (9,856) 79 INCREASE IN CASH AND CASH EQUIVALENTS 8,880,500 6,388,306 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 14,770,584 7,175,215 CASH AND CASH EQUIVALENTS, END OF PERIOD $23,651,084 $13,563,521 SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for income taxes $(226,855) $- Non-cash investing activities Acquisition of intangible assets through issuance of the Company's stock $1,096,399 $-

6 CELLULAR BIOMEDICINE GROUP, INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) For the Three Months Ended For the Six Months Ended June 30, June 30, Net sales and revenue $656,959 $118,069 $1,260,349 $179,120 Operating expenses: Cost of sales 398,229 51, ,291 92,553 General and administrative 3,768,535 1,642,758 6,448,772 2,954,761 Selling and marketing 161,219 44, ,241 65,495 Research and development 1,322, ,388 2,778,112 1,288,044 Impairment of investments ,428 - Total operating expenses 5,650,675 2,458,235 10,552,844 4,400,853 Operating loss (4,993,716) (2,340,166) (9,292,495) (4,221,733) Other income (expense): Interest income 5, , Other income (expense) 13,523 74,480 10,820 94,617 Total other income 19,443 74,821 31,851 95,182 Loss from continuing operations before taxes (4,974,273) (2,265,345) (9,260,644) (4,126,551) Income taxes provision (52,202) - (53,002) - Loss from continuing operations (5,026,475) (2,265,345) (9,313,646) (4,126,551) Loss on discontinued operations, net of taxes - (4,408,918) - (2,994,243) Net loss $(5,026,475) $(6,674,263) $(9,313,646) $(7,120,794) Other comprehensive income (loss): Cumulative translation adjustment 42,236 4,978 61,845 (6,835) Unrecognized gain (loss) on investments 10,631,731 4,042,797 8,063,460 3,521,349 Total other comprehensive loss: 10,673,967 4,047,775 8,125,305 3,514,514 Comprehensive income (loss) $5,647,492 $(2,626,488) $(1,188,341) $(3,606,280) Loss per share for continuing operations: Basic $(0.44) $(0.29) $(0.83) $(0.54) Diluted $(0.44) $(0.29) $(0.83) $(0.54) Loss per share for discontinued operations: Basic $- $(0.56) $- $(0.39) Diluted $- $(0.56) $- $(0.39) Net loss per share : Basic $(0.44) $(0.85) $(0.83) $(0.93) Diluted $(0.44) $(0.85) $(0.83) $(0.93) Weighted average common shares outstanding: Basic 11,531,497 7,829,314 11,286,712 7,660,974 Diluted 11,531,497 7,829,314 11,286,712 7,660,974

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