-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 TG+h3XCjG/ulF2PfTlaiv9Sz87jVaMPAzmBf6dl9AA1xr741/6Vvxf2gc7UHesWk
 XhZy3YAR+k72+VpCnxvvsg==

<SEC-DOCUMENT>0001157523-06-008927.txt : 20060901
<SEC-HEADER>0001157523-06-008927.hdr.sgml : 20060901
<ACCEPTANCE-DATETIME>20060901203026
ACCESSION NUMBER:		0001157523-06-008927
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060830
FILED AS OF DATE:		20060901
DATE AS OF CHANGE:		20060901

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PHASE III MEDICAL INC/DE
		CENTRAL INDEX KEY:			0000320017
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090]
		IRS NUMBER:				222343568
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		330 SOUTH SERVICE ROAD
		STREET 2:		SUITE 120
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
		BUSINESS PHONE:		6315744955

	MAIL ADDRESS:	
		STREET 1:		330 SOUTH SERVICE ROAD
		STREET 2:		SUITE 120
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CORNICHE GROUP INC /DE
		DATE OF NAME CHANGE:	19951117

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FIDELITY MEDICAL INC
		DATE OF NAME CHANGE:	19951025

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FIDELITY MEDICAL SERVICES INC
		DATE OF NAME CHANGE:	19830825

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			ZUCKERMAN JOSEPH
		CENTRAL INDEX KEY:			0001277835

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-10909
		FILM NUMBER:		061072550

	MAIL ADDRESS:	
		STREET 1:		C/O PHASE III MEDICAL INC
		STREET 2:		330 SOUTH SERVICE RD STE. 120
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>a5220303_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-08-30</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000320017</issuerCik>
        <issuerName>PHASE III MEDICAL INC/DE</issuerName>
        <issuerTradingSymbol>PHSM</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001277835</rptOwnerCik>
            <rptOwnerName>ZUCKERMAN JOSEPH</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O NEOSTEM, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>420 LEXINGTON AVENUE, SUITE 450</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10170</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, $.001 par value</value>
            </securityTitle>
            <transactionDate>
                <value>2006-08-30</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>C</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F3"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>284090</value>
                    <footnoteId id="F5"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>.044</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
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            <postTransactionAmounts>
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    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>9% Convertible Promissory Notes due 2006</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>.06</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-08-30</value>
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                </transactionAcquiredDisposedCode>
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            <exerciseDate>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2006-10-06</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
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            <exerciseDate>
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            </exerciseDate>
            <expirationDate>
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            <underlyingSecurity>
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        <derivativeTransaction>
            <securityTitle>
                <value>9% Convertible Promissory Notes due 2006</value>
            </securityTitle>
            <conversionOrExercisePrice>
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            <transactionDate>
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                <transactionFormType>4</transactionFormType>
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                <footnoteId id="F3"/>
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            <expirationDate>
                <value>2006-10-06</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
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                </underlyingSecurityTitle>
                <underlyingSecurityShares>
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                    <footnoteId id="F5"/>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
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        <derivativeTransaction>
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            </securityTitle>
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            </conversionOrExercisePrice>
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            </transactionDate>
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                    <footnoteId id="F5"/>
                </transactionShares>
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                    <footnoteId id="F3"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F2"/>
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            <expirationDate>
                <value>2006-10-06</value>
            </expirationDate>
            <underlyingSecurity>
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                </underlyingSecurityTitle>
                <underlyingSecurityShares>
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                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Warrants (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>.08</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-08-30</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
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                    <footnoteId id="F5"/>
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                <transactionPricePerShare>
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                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
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            <exerciseDate>
                <footnoteId id="F4"/>
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            <expirationDate>
                <value>2011-08-30</value>
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    </derivativeTable>

    <footnotes>
        <footnote id="F1">On August 30, 2006, Joseph Zuckerman entered into a letter agreement (the &quot;Agreement&quot;) with Gilbert Raker, pursuant to which
 Dr. Zuckerman agreed to purchase a total of $12,500 of principal amount of that certain Convertible Promissory Note (the
 &quot;Note&quot;) made by NeoStem, Inc. (f/k/a/ Phase III Medical, Inc., the &quot;Company&quot;) to Mr. Raker on January 6, 2006, in the total
 principal amount of $25,000. The total consideration paid by Dr. Zuckerman to Mr. Raker pursuant to the Agreement was
 $12,500.</footnote>
        <footnote id="F2">The convertible promissory note is convertible immediately.</footnote>
        <footnote id="F3">Pursuant to a special offer made by the Company to all holders of promissory notes issued by the Company in a private
 placement that took effect in December 2005 and January 2006 (in which Mr. Raker purchased the Note), Dr. Zuckerman executed
 an agreement with the Company on August 30, 2006, whereby Dr. Zuckerman agreed to convert the Note.  As consideration for
 entering into such agreement, the Company agreed to:  (i) reduce the conversion price of the convertible promissory note
 from $.06 per share to $.044 per share, (ii) issue 56,818 shares of the Company's common stock to Dr. Zuckerman and (iii)
 grant to Dr. Zuckerman a warrant to purchase 208,333 shares of common stock of the Company at an exercise price of $0.08 per
 share.</footnote>
        <footnote id="F4">The warrant is exercisable immediately.</footnote>
        <footnote id="F5">Number does not reflect a one-for-ten reverse stock split that was effective August 31, 2006.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Mark Weinreb, Attorney-In-Fact</signatureName>
        <signatureDate>2006-09-01</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----