SEC Form 3 
FORM 3	UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940 	  
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1. Name and Address of Reporting Person*
KOSHY GEORGE	

(Last)	(First)	(Middle)	
C/O STEMCELLS, INC.	
3155 PORTER DRIVE	

(Street) 
PALO ALTO	CA	94304	

(City)	(State)	(Zip)	
	2. Date of Event Requiring Statement (Month/Day/Year)
07/25/2003 	3. Issuer Name and Ticker or Trading Symbol 
STEMCELLS INC [ stem ] 		
		4. Relationship of Reporting Person(s) to Issuer 
(Check all applicable) 
	Director		10% Owner	
	Officer (give title below)	X	Other (specify below)	
principal accounting officer	
	5. If Amendment, Date of Original Filed (Month/Day/Year)				
			6. Individual or Joint/Group Filing (Check Applicable Line) 
X	Form filed by One Reporting Person	
	Form filed by More than One Reporting Person	
	
Table I - Non-Derivative Securities Beneficially Owned	
1. Title of Security (Instr. 4) 	2. Amount of Securities Beneficially Owned (Instr. 4) 	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5) 	4. Nature of Indirect Beneficial Ownership (Instr. 5) 	
Common Stock	15,000	D		
Table II - Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities) 	
1. Title of Derivative Security (Instr. 4) 	2. Date Exercisable and Expiration Date (Month/Day/Year)	3. Title and Amount of Securities Underlying Derivative Security (Instr. 4) 	4. Conversion or Exercise Price of Derivative Security 	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5) 	6. Nature of Indirect Beneficial Ownership (Instr. 5) 	
	Date Exercisable	Expiration Date	Title	Amount or Number of Shares				
Stock Option (Right to Buy)	07/03/2001(1) 	10/05/2010	Common Stock	14,250	5.09	D		
Stock Option (Right to Buy)	10/06/2001(2) 	10/05/2010	Common Stock	10,000	5.09	D		
Stock Option (Right to Buy)	03/14/2002(1) 	05/25/2011	Common Stock	4,200	4.65	D		
Stock Option (Right to Buy)	10/22/2001(2) 	10/21/2011	Common Stock	10,000	2.62	D		
Stock Option (Right to Buy)	10/07/2002(2) 	10/06/2012	Common Stock	30,000	0.61	D		
Explanation of Responses:	
1. Performance-based Employee Incentive Stock Option, vested on achievement of objectives	
2. Employee Incentive Stock Option; vests 1/4 on the first anniversary of grant and 1/48 per month thereafter	
Remarks:	
	
	George Koshy by Iris Brest, Attorney-in-Fact	07/31/2003	
	** Signature of Reporting Person	Date	
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.	
* If the form is filed by more than one reporting person, see Instruction 5 (b)(v).	
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).	
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.	
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.	
        POWER OF ATTORNEY

Know all by these presents, that the undersigned
hereby constitutes and appoints each of Iris Brest and Martin McGlynn,
signing singly, the undersigned's true and lawful attorney-in-fact
to:

(1)     execute for and on behalf of the undersigned, in the
undersigned's capacity as a filer of Forms 3, 4, and 5 in regard to his
position with StemCells, Inc. (the "Company"), in accordance with Section
16(a) of the Securities Exchange Act of 1934 and the rules
thereunder;

(2)     do and perform any and all acts for and on behalf of the
undersigned which may be necessary or desirable to complete and execute any
such Form 3, 4, or 5 and timely file such form with the United States
Securities and Exchange Commission and any stock exchange or similar
authority; and

(3)     take any other action of any type whatsoever in
connection with the foregoing which, in the opinion of such
attorney-in-fact, may be of benefit to, in the best interest of, or legally
required by, the undersigned, it being understood that the documents
executed by such attorney-in-fact on behalf of the undersigned pursuant to
this Power of attorney shall be in such form and shall contain such terms
and conditions as such attorney-in-fact may approve in such
attorney-in-fact's discretion.

The undersigned hereby grants to each
such attorney-in-fact full power and authority to do and perform any and
every act and thing whatsoever requisite, necessary, or proper to be done
in the exercise of any of the rights and powers herein granted, as fully to
all intents and purposes as the undersigned might or could do if personally
present, with full power of substitution or revocation, hereby ratifying
and confirming all that such attorney-in-fact, or such attorney-in-fact's
substitute or substitutes, shall lawfully do or cause to be done by virtue
of this power of attorney and the rights and powers herein granted.  The
undersigned acknowledges that the foregoing attorneys-in-fact, in serving
in such capacity at the request of the undersigned, are not assuming, nor
is the Company assuming, any of the undersigned's responsibilities to
comply with Section 16 of the Securities Exchange Act of 1934.

This
Power of Attorney shall remain in full force and effect until the
undersigned is no longer required to file Forms 3, 4, and 5 with respect to
the undersigned's holdings of and transactions in securities issued by the
Company, unless earlier revoked by the undersigned in a signed writing
delivered to the foregoing attorneys-in-fact.

IN WITNESS WHEREOF, the
undersigned has caused this Power of Attorney to be executed as of this
29th day of July,
2003.

        __________________/s/___________________
        Signature

        __________George
Koshy_____________
        Print Name