Press release

HACKENSACK, N.J. and PETACH TIKVAH, Israel ·

BrainStorm Announces Second Quarter 2017 Financial Results

BrainStorm Cell Therapeutics Inc. (NASDAQ: BCLI), a leading developer of adult stem cell technologies for neurodegenerative diseases, announced financial results for the second quarter ending June 30, 2017.

"We are in the advanced stages of preparing for our pivotal Phase 3 trial to investigate NurOwn® in ALS," said Chaim Lebovits, President and Chief Executive Officer of BrainStorm. "We have agreements with Mass. General Hospital, California Pacific Medical Center and University of California-Irvine Medical Center to participate as centers in the trial, which will be funded in part by a non-dilutive grant of $16 million awarded by the California Institute for Regenerative Medicine (CIRM). Based on the body of preclinical and clinical data we have compiled on NurOwn, including data from our placebo-controlled Phase 2 trial which showed evidence of halting in disease progression, we believe that NurOwn has the potential to become a valuable treatment option for ALS patients."

Second Quarter and Recent Financial Highlights:

Financial Results for the Second Quarter Ended June 30, 2017

Financial Results for the Six Months Ended June 30, 2017

Conference Call on Wednesday, August 16 th

Members of BrainStorm's senior management team, including Chaim Lebovits, CEO, and Ralph Kern, M.D., MHSc, COO and CMO, will host a conference call and live webcast for the investment community on Wednesday, August 16, 2017 at 8:30am Eastern Time. The details are as follows:

Toll Free: 877-718-5095 Israel Investors: 1 80 924 6042 International: 913-312-0381 Conference ID: 1392963 Webcast: http://public.viavid.com/index.php?id=125868

Replays, available through August 30, 2017 Toll Free: 844-512-2921 International: 412-317-6671 Conference ID: 1392963

About BrainStorm Cell Therapeutics Inc.

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (Except share data)
June 30, 2 0 1 7 U.S. $ in thousandsDecember 31, 2 0 1 6 U.S. $ in thousands
ASSETSUnauditedAudited
Current Assets:
Cash and cash equivalents$ 5,784$ 547
Short-term deposit (Note 4)9339,443
Account receivable735306
Prepaid expenses and other current assets230148
Total current assets7,68210,444
Long-Term Assets:
Prepaid expenses and other long-term assets2425
Property and Equipment, Net295297
Total Long-Term Assets319322
Total assets$ 8,001$ 10,766
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payables$ 227$ 345
Accrued expenses114152
Other accounts payable370367
Total current liabilities711864
Stockholders' Equity:
Stock capital: (Note 5)1111
Common stock of $0.00005 par value - Authorized: 100,000,000 shares at June 30, 2017 and December 31, 2016 respectively; Issued and outstanding: 18,747,327 and 18,687,987 shares at June 30, 2017 and December 31, 2016 respectively.
Additional paid-in-capital85,22785,014
Accumulated deficit(77,948)(75,123)
Total stockholders' equity7,2909,902
Total liabilities and stockholders' equity$ 8,001$ 10,766
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) U.S. dollars in thousands (Except share data)
Six months ended June 30, 2017 UnauditedThree months ended June 30, 2016 UnauditedJune 30, 2 0 1 7 UnauditedJune 30, 2 0 1 6 UnauditedJune 30, Unaudited
Operating expenses:
Research and development, net$ 1,376$ 1,376$ 1,137$ 435$ 151
General and administrative1,4691,4691,658640832
Operating loss(2,845)(2,845)(2,795)(1,075)(983)
Financial income, net(20)(20)(43)(35)(21)
Net loss$ (2,825)$ (2,825)$ (2,752)$ (1,040)$ (962)
Basic and diluted net profit (loss) per share$ (0.15)$ (0.15)$ (0.15)$ (0.06)$ (0.05)
Weighted average number of shares outstanding used in computing basic and diluted net loss per share18,713,57518,713,57518,653,92218,738,49618,654,040

BrainStorm Cell Therapeutics Inc. is a biotechnology company engaged in the development of first-of-its-kind adult stem cell therapies derived from autologous bone marrow cells for the treatment of neurodegenerative diseases. The Company holds the rights to develop and commercialize its NurOwn technology through an exclusive, worldwide licensing agreement with Ramot, the technology transfer company of Tel Aviv University. NurOwn has been administered to approximately 75 patients with ALS in clinical trials conducted in the United States and Israel. In a randomized, double-blind, placebo-controlled clinical trial conducted in the U. S., a clinically meaningful benefit was demonstrated by higher response to NurOwn compared with placebo. For more information, visit the company's website at www.brainstorm-cell.com.

Safe-Harbor Statement

Statements in this announcement other than historical data and information constitute "forward-looking statements" and involve risks and uncertainties that could cause BrainStorm Cell Therapeutics Inc.'s actual results to differ materially from those stated or implied by such forward-looking statements. Terms and phrases such as "may", "should", "would", "could", "will", "expect", "likely", "believe", "plan", "estimate", "predict", "potential", and similar terms and phrases are intended to identify these forward-looking statements. The potential risks and uncertainties include, without limitation, risks associated with BrainStorm's limited operating history, history of losses; minimal working capital, dependence on its license to Ramot's technology; ability to adequately protect the technology; dependence on key executives and on its scientific consultants; ability to obtain required regulatory approvals; and other factors detailed in BrainStorm's annual report on Form 10-K and quarterly reports on Form 10-Q available at http://www.sec.gov. These factors should be considered carefully, and readers should not place undue reliance on BrainStorm's forward-looking statements. The forward-looking statements contained in this press release are based on the beliefs, expectations and opinions of management as of the date of this press release. We do not assume any obligation to update forward-looking statements to reflect actual results or assumptions if circumstances or management's beliefs, expectations or opinions should change, unless otherwise required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

CONTACTS Media: Uri Yablonka Chief Business OfficerBrainStorm Cell Therapeutics Inc.Phone: 646-666-3188 uri@brainstorm-cell.com

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

(Except share data)

June 30,

December 31,

2 0 1 7

2 0 1 6

U.S. $ in thousands

ASSETS

Unaudited

Audited

Current Assets:

Cash and cash equivalents

$ 5,784

$ 547

Short-term deposit (Note 4)

933

9,443

Account receivable

735

306

Prepaid expenses and other current assets

230

148

Total current assets

7,682

10,444

Long-Term Assets:

Prepaid expenses and other long-term assets

Property and Equipment, Net

295

297

Total Long-Term Assets

319

322

Total assets

$ 8,001

$ 10,766

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payables

$ 227

$ 345

Accrued expenses

114

152

Other accounts payable

370

367

Total current liabilities

711

864

Stockholders' Equity:

Stock capital: (Note 5)

Common stock of $0.00005 par value - Authorized: 100,000,000 shares at June 30, 2017 and December 31, 2016 respectively; Issued and outstanding: 18,747,327 and 18,687,987 shares at June 30, 2017 and December 31, 2016 respectively.

Additional paid-in-capital

85,227

85,014

Accumulated deficit

(77,948)

(75,123)

Total stockholders' equity

7,290

9,902

Total liabilities and stockholders' equity

$ 8,001

$ 10,766

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

U.S. dollars in thousands

(Except share data)

Six months ended

Three months ended

June 30,

June 30,

2 0 1 7

2 0 1 6

Unaudited

Unaudited

Operating expenses:

Research and development, net

$ 1,376

$ 1,137

$ 435

$ 151

General and administrative

1,469

1,658

640

832

Operating loss

(2,845)

(2,795)

(1,075)

(983)

Financial income, net

(20)

(43)

(35)

(21)

Net loss

$ (2,825)

$ (2,752)

$ (1,040)

$ (962)

Basic and diluted net profit (loss) per share

$ (0.15)

$ (0.15)

$ (0.06)

$ (0.05)

Weighted average number of shares outstanding used in computing basic and diluted net loss per share

18,713,575

18,653,922

18,738,496

18,654,040

Contacts

Media:

Uri Yablonka

Chief Business Officer

BrainStorm Cell Therapeutics Inc.

Phone: 646-666-3188

uri@brainstorm-cell.com

Investors:

Michael Rice

LifeSci Advisors, LLC

Phone: 646-597-6979

mrice@lifesciadvisors.com

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

(Except share data)

June 30,

December 31,

2 0 1 7

2 0 1 6

U.S. $ in thousands

ASSETS

Unaudited

Audited

Current Assets:

Cash and cash equivalents