Cytori’s Celution(TM) System Approved in Japan for Stem Cell Collection & Preservation

Cytori Therapeutics (NASDAQ:CYTX) received approval in Japan on the Celution™ System for use in medical laboratories for stem cell collection and preservation procedures. Commercialization of the StemSource™ Cell Bank will now begin based on this achievement in addition to the recent receipt of a foreign manufacturing license. As a result, Green Hospital Supply, Inc., Cytori’s exclusive commercialization partner for the StemSource™ Cell Bank in Japan, expects to install the first hospital-based banks as early as the first quarter of 2008.

“The StemSource™ Cell Bank offers a new and compelling business opportunity for Japanese hospitals,” said Kunihisa Furukawa, President, Green Hospital Supply. “Installing the StemSource™ Cell Bank will allow medical centers to become early adopters of regenerative medicine, expand and strengthen patient relationships, and grow revenue through an automated cell bank and storage annuity.”

The StemSource™ Cell Bank is a comprehensive onsite cell banking service, which includes the Celution™ System for automated cell processing and all related equipment and proprietary know-how and software. The bank will provide patients with the first-ever opportunity to securely preserve their own adipose-derived stem and regenerative cells for potential future medical treatments.

“The Celution™ System makes the StemSource™ Cell Bank economically attractive,” said Seijiro Shirahama, Senior Vice President, Asia Pacific, Cytori Therapeutics. “This approval clears the way for Green Hospital Supply to begin hospital-directed commercialization activities. We are pleased to report that we received this approval well ahead of schedule and efforts to launch the cell bank are proceeding as planned.”

Adipose tissue is a rich and easily accessible source of stem and regenerative cells believed to be involved in the healing process. Scientific data has demonstrated that as the body ages, so too do one’s stem and regenerative cells. For this reason, early cell retrieval and storage may enhance their therapeutic potential when used at a later time.

Cytori Therapeutics

Cytori Therapeutics is a global leader in the development of regenerative medicine products. The company is developing therapeutic applications for its Celution™ System to enable real-time regenerative cell therapy in conjunction with breast reconstruction surgery, cardiovascular disease, and other unmet medical needs. The Company’s StemSource™ Cell Bank, which is based on Cytori’s innovative Celution™ System, will be commercialized in Japan starting in 2008 to hospitals and clinics to enable regenerative cell banking. www.cytoritx.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements regarding events, trends and prospects of our business, which may affect our future operating results and financial position. Such statements are subject to risks and uncertainties that could cause our actual results and financial position to differ materially. Some of these risks and uncertainties include our history of operating losses, the need for further financing, regulatory uncertainties, dependence on performance of third parties, and other risks and uncertainties described (under the heading “Risk Factors”) in Cytori Therapeutics’ Form 10-K annual report for the year ended December 31, 2006. We assume no responsibility to update or revise any forward-looking statements to reflect events, trends or circumstances after the date they are made.