Prevention and/or treatment of type 1 diabetes by augmentation of myeloid suppressor cell activity

A method of treating type 1 diabetes comprising the steps of:

• a) selecting a patient suffering from type 1 diabetes;
• b) extracting an immune cell population comprising T regulatory cells from said patient;
• c) exposing said immune cell population to interleukin-2 (IL-2) and conditioned media from mesenchymal stem cells derived from a source selected from the group consisting of:
• placental tissue, amniotic membrane, umbilical cord tissue, fallopian tube tissue, and subepithelial umbilical cord tissue and treated with interferon gamma;
• d) separating T regulatory cells from said immune cell population and administering said T regulatory cells back into said patient in need of treatment;
• and e) administering an agent capable of enhancing the number and/or activity of myeloid suppressor cells selected from the group consisting of granulocyte-macrophage colony-stimulating factor (GM-CSF) and Bacillus Calmette-Guérin (BCG) vaccine into said patient.