Press release

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

BrainStorm Announces Third Quarter 2017 Financial Results

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

"We have had a very active third quarter culminating in the initiation of our Phase 3 trial investigating NurOwn® in amyotrophic lateral sclerosis(ALS), as announced yesterday. The first patients have enrolled into the trial, and we look forward to data in 2019," said Chaim Lebovits, president and chief executive officer of BrainStorm. "ALS is a devastating disease with very few treatment options for patients. In our placebo-controlled phase 2 trial NurOwn demonstrated significant clinical benefit for ALS patients. We look forward to providing updates as the Phase 3 trial progresses."

Third Quarter Highlights:

Financial Results for the Third Quarter Ended September 30, 2017

Financial Results for the Nine Months Ended September 30, 2017

Conference Call on Tuesday, October 17, 2017 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 Tuesday, October 17, 2017 at 8:30am Eastern Time. The details are as follows:

Toll Free:

888-395-3237

Israel Investors:

1 80 924 5905

International:

719-325-2349

Conference ID:

4131959

Webcast:

http://public.viavid.com/index.php?id=126580

Replays, available through October 31, 2017

Toll Free:

844-512-2921

International:

412-317-6671

Conference ID:

4131959

About BrainStorm Cell Therapeutics Inc. 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

Toll Free:888-395-3237
Israel Investors:1 80 924 5905
International:719-325-2349
Conference ID:4131959
Webcast:http://public.viavid.com/index.php?id=126580
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (Except share data)
September 30, 2017 U.S. $ in thousandsDecember 31, 2016 U.S. $ in thousands
ASSETSUnauditedAudited
Current Assets:
Cash and cash equivalents$ 2,464$ 547
Short-term deposit (Note 4)8,0839,443
Account receivable318306
Prepaid expenses and other current assets86148
Total current assets10,95110,444
Long-Term Assets:
Prepaid expenses and other long-term assets2625
Property and Equipment, Net358297
Total Long-Term Assets384322
Total assets$ 11,335$ 10,766
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payables$ 275$ 345
Accrued expenses204152
Deferred grant income (Note 5)5,250-
Other accounts payable411367
Total current liabilities6,140864
Stockholders' Equity:
Stock capital: (Note 6)1111
Common stock of $0.00005 par value - Authorized: 100,000,000 shares at September 30, 2017 and December 31, 2016 respectively; Issued and outstanding: 18,842,726 and 18,687,987 shares at September 30, 2017 and December 31, 2016 respectively.
Additional paid-in-capital85,53585,014
Accumulated deficit(80,351)(75,123)
Total stockholders' equity5,1959,902
Total liabilities and stockholders' equity$ 11,335$ 10,766
BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) U.S. dollars in thousands (Except share data)
Nine months ended September 30, 2017 UnauditedThree months ended September 30, 2016 UnauditedSeptember 30, 2017 UnauditedSeptember 30, 2016 UnauditedSeptember 30, Unaudited
Operating expenses:
Research and development, net$ 2,544$ 2,544$ 1,927$ 1,168$ 790
General and administrative2,6932,6932,5061,224848
Operating loss(5,237)(5,237)(4,433)(2,392)(1,638)
Financial expense (income), net(9)(9)(75)11(32)
Net loss$ (5,228)$ (5,228)$ (4,358)$ (2,403)$ (1,606)
Basic and diluted net profit (loss) per share$ (0.28)$ (0.28)$ (0.23)$ (0.13)$ (0.09)
Weighted average number of shares outstanding used in computing basic and diluted net loss per share18,737,30718,737,30718,654,82618,783,99718,656,615

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (Except share data)

September 30,

December 31,

U.S. $ in thousands

ASSETS

Unaudited

Audited

Current Assets:

Cash and cash equivalents

$ 2,464

$ 547

Short-term deposit (Note 4)

8,083

9,443

Account receivable

318

306

Prepaid expenses and other current assets

148

Total current assets

10,951

10,444

Long-Term Assets:

Prepaid expenses and other long-term assets

Property and Equipment, Net

358

297

Total Long-Term Assets

384

322

Total assets

$ 11,335

$ 10,766

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payables

$ 275

$ 345

Accrued expenses

204

152

Deferred grant income (Note 5)

5,250

Other accounts payable

411

367

Total current liabilities

6,140

864

Stockholders' Equity:

Stock capital: (Note 6)

Common stock of $0.00005 par value - Authorized: 100,000,000 shares at September 30, 2017 and December 31, 2016 respectively; Issued and outstanding: 18,842,726 and 18,687,987 shares at September 30, 2017 and December 31, 2016 respectively.

Additional paid-in-capital

85,535

85,014

Accumulated deficit

(80,351)

(75,123)

Total stockholders' equity

5,195

9,902

Total liabilities and stockholders' equity

$ 11,335

$ 10,766

BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) U.S. dollars in thousands (Except share data)

Nine months ended

Three months ended

September 30,

September 30,

Unaudited

Unaudited

Operating expenses:

Research and development, net

$ 2,544

$ 1,927

$ 1,168

$ 790

General and administrative

2,693

2,506

1,224

848

Operating loss

(5,237)

(4,433)

(2,392)

(1,638)

Financial expense (income), net

(9)

(75)

(32)

Net loss

$ (5,228)

$ (4,358)

$ (2,403)

$ (1,606)

Basic and diluted net profit (loss) per share

$ (0.28)

$ (0.23)

$ (0.13)

$ (0.09)

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

18,737,307

18,654,826

18,783,997

18,656,615

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)

September 30,

December 31,

2017

2016

U.S. $ in thousands

ASSETS

Unaudited

Audited

Current Assets:

Cash and cash equivalents