EXHIBIT 99.1


CONTACTS:  Kris M. Maly or                             Kevin McGrath
           Becky Anderson                              Cameron Associates
           Investor Relations Department               Phone: (212) 245-4577
           Aastrom Biosciences, Inc.
           Phone: (734) 930-5777

  AASTROM BIOSCIENCES ANNOUNCES $9.1 MILLION PRIVATE PLACEMENT OF COMMON STOCK

ANN ARBOR, MICHIGAN, APRIL 5, 2004 -- Aastrom Biosciences, Inc. (NasdaqSC: ASTM)
announced today that it has placed 8 million shares of common stock with
institutional investors at approximately $1.14 per share, for an aggregate
purchase price of approximately $9.1 million in a registered direct offering. As
part of this transaction, the Company will also issue warrants, to the
purchasers, exercisable for five years to purchase up to 2.4 million shares of
common stock at a price of $1.42. The Company may require the exercise of the
warrants under certain circumstances prior to their expiration date. If
exercised, the warrants could generate up to an additional $3.4 million in
proceeds to Aastrom. Jesup & Lamont Securities Corp. served as placement agent
for the transaction.

A registration statement relating to these securities has been filed with the
U.S. Securities and Exchange Commission. A prospectus and prospectus supplement
relating to this transaction may be obtained directly from the Company or from
the U.S. Securities and Exchange Commission website at www.sec.gov.

This press release does not constitute and offer to sell or the solicitation of
an offer to buy, and these securities cannot be sold in any state which this
offer, solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.

ABOUT AASTROM BIOSCIENCES, INC.

Aastrom Biosciences, Inc. (NasdaqSC: ASTM) is a late-stage development company
focused on human cell-based therapies. The AastromReplicell(TM) System - a
patented, integrated system of instrumentation and single-use consumable kits
for the production of patient-specific cells - is the Company's core technology
for its Prescription Cell Products (PCP) business and its Cell Production
Products (CPP) business. The principal focus of the PCP business is the repair
or regeneration of tissue intended for large markets such as bone grafting and
vascular systems. Aastrom is currently engaged in clinical trials of its bone
grafting product both in the U.S. and Europe. The CPP business markets the
AastromReplicell(TM) System to researchers and companies for their production of
cells for clinical trials. These two businesses are intended to enable Aastrom
to generate multiple paths to revenue. The initial commercial phase of the CPP
business for dendritic cell production products is underway in Europe and the
United States. For more information, visit Aastrom's website at www.aastrom.com.

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