Geron Corporation (Nasdaq:GERN) today announced that it has entered into a worldwide, exclusive license agreement with the University of Edinburgh covering technology that allows the efficient production of chondrocytes (cartilage forming cells) from human pluripotent stem cells. The license gives Geron exclusive rights to the technology for therapeutic applications, and will enhance Geron’s program to develop cell replacement therapies for orthopedic indications such as osteoarthritis, a disease affecting 27 million people in the U.S. Financial terms of the license agreement were not disclosed.

The technology was developed in the laboratory of Professor Brendon Noble, as part of a research collaboration between Geron and the University. The research was also supported by the UK Stem Cell Foundation, with funding from Scottish Enterprise and the Medical Research Council.

“This successful research collaboration gave us proof of concept in rodent models for the repair of damaged cartilage using chondrocytes made from human embryonic stem cells,” said David J. Earp, J.D., Ph.D., Geron’s chief patent counsel and senior vice president of business development. “The rights we have licensed in this agreement will serve to protect our continued development of the technology.”

The studies in Dr. Noble’s laboratory showed that injection of hESC-derived chondrocytes into the damaged knee joint cartilage of immunocompetent rats produced well-integrated cartilage with full repair of the lesion for at least nine months. Large animal models are now being used to test the cells in human scale lesions to further assess cartilage integration, mechanical function, and durability.

Professor Sir John Savill, Head of College of Medicine and Veterinary Medicine, University of Edinburgh, said, “This license agreement reflects the high quality of research carried out at the University of Edinburgh, where there is a great emphasis on translating research at the laboratory bench into direct applications that can benefit patients.”

Background information about hESC-derived chondrocytes for cartilage cell therapy is available at http://eon.businesswire.com/news/eon/20100913005628/en.

About Geron

Geron is developing first-in-class biopharmaceuticals for the treatment of cancer and chronic degenerative diseases, including spinal cord injury, heart failure and diabetes. The company is advancing an anti-cancer drug and a cancer vaccine that target the enzyme telomerase through multiple clinical trials in different cancers. For more information, visit www.geron.com.

This news release may contain forward-looking statements made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that statements in this press release regarding potential applications of Geron’s human embryonic stem cell technology constitute forward-looking statements that involve risks and uncertainties, including, without limitation, risks inherent in the development and commercialization of potential products, uncertainty of clinical trial results or regulatory approvals or clearances, need for future capital, dependence upon collaborators and protection of our intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in Geron’s periodic reports, including the quarterly report on Form 10-Q for the quarter ended June 30, 2010.