On October 12, 2019, the board of directors (the “Board”) of Cellular Biomedicine Group, Inc. (the “Company”) elected Edward Schafer as a non-executive Class I director of the Company. Mr. Schafer was also elected to serve as a member of the Audit Committee of the Company.

Mr. Schafer brings executive leadership experience, a valuable and different perspective due to his extensive background in natural resources, private sector, voluntary environmental solutions, digital communication and technology policy and politics along with strong experience in financial services. He has served on audit and compensation committees for public companies and has deep experience in strategic planning in both the private and public sectors. Mr. Schaferhas served as vice chairman of Bion Environmental Technologies Inc., anagriculture technology company, since 2011.Mr.Schafer is Co-Founder of Extend America, a rural America wirelesscommunication company. He is a board member of AGCO-Amity JV, and Vice Chairman of Amity Technology LLP,agricultural equipment companies, and serves on the board ofNorthstar CapitalPartners LLC, a financial services company.Mr. Schafer is also Chairman of Dynamic Food Ingredients, and aboard memberof the Center for Innovation at the University of North Dakota and teaches a leadership class at North Dakota State University. Mr. Schafer was elected as governor of the StateofNorth Dakota in two consecutive terms, is a past chair of the RepublicanGovernors Association, the Midwestern Governors’ Association, theInterstateOil and Gas Compact, the Western Governors’ Association and served as the 29thUnited States Secretary of Agricultural from 2008 to2009. Mr. Schafer holds aMaster’s degree in Business Administration from theUniversity of Denver.

In connection with his appointment, on October 12, 2019, the Company entered into an indemnification agreement (the “Indemnification Agreement”) with Mr. Schafer. to the Indemnification Agreement,the Company has agreed to indemnify Mr. Schafer from and against any and all expenses to the fullest extent permitted by law in the event that Mr. Schafer was, is, or becomes a party to or witness or other participant in, or is threatened to be made a party to or witness or other participant in, a legal proceeding by reason of, or arising in part out of, an event related to Mr. Schafer’s directorship at the Company on or after the effective date of the Indemnification Agreement.

In connection with his service on the Board and the Audit Committee, Mr. Schafer will be entitled to an annual director fee of $36,000 and an additional $40,000 fee as a member of the Audit Committee, payable monthly. In addition, as leader of the Company’s Strategic Task Force, Mr. Schafer will be entitled $110,000 remuneration, payable in equal monthly installments from November 2019 to April 2020. Half of the foregoing compensation will be paid in cash, with the remaining half to be paid in a stock option grant. As part of his compensation, on October 12, 2019, Mr. Schafer received a non-qualified stock option to purchase 5,044 shares of the Company’s common stock under the Company’s 2014 Equity Incentive Plan with an exercise of $14.93 per share, all of which will vest on April 24, 2020.

No family relationships exist between Mr. Schafer and any of the Company\’s other directors or executive officers. Other than reported herein, there are no transactions to which the Company is or was a participant and in which Mr. Schafer has a material interest subject to disclosure under Item 404(a) of Regulation S-K.

About CELLULAR BIOMEDICINE GROUP, INC. (NASDAQ:CBMG)

Cellular Biomedicine Group, Inc. (CBMG) is a biomedicine company. The Company is engaged in the development of treatments for cancerous and degenerative diseases utilizing cell-based technologies. The Company operates in Biomedicine Cell Therapy segment. The Company’s technology includes platforms, such as Immune Cell therapy for treatment of broad range of cancers using Vaccine, T Cells Receptor (TCR) clonality analysis technology and T Central Memory Cell (Tcm) preparation methodologies, Chimeric Antigen Receptor T cell (CAR-T), and human adipose-derived mesenchymal progenitor cells (haMPC) for treatment of joint and autoimmune diseases, with primary research and manufacturing facilities in China. It is focused on developing and marketing cell-based therapies based on its cellular platforms, to treat serious chronic and degenerative diseases, such as cancer, orthopedic diseases, including osteoarthritis and tissue damage, various inflammatory diseases and metabolic diseases.