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Cytori to Raise $12 Million in Strategic Equity Agreement With Green Hospital Supply

Posted on: Friday, 8 February 2008, 03:00 CST

Cytori Therapeutics, Inc. (NASDAQ:CYTX) entered into a strategic equity agreement with Green Hospital Supply, Inc. (TOKYO:3360). Green Hospital Supply, Cytori's StemSource™ commercialization partner for Japan, will purchase 2.0 million shares of unregistered Cytori common stock at $6.00 per share and be granted a non-voting observer seat on Cytori's board of directors. The transaction will close on or before February 28, 2008, subject to satisfaction of customary closing conditions. Following the transaction, Green Hospital Supply's ownership in Cytori will increase to 3.0 million shares, representing 11.5% of Cytori's total shares outstanding.

"Our increased equity position in Cytori is strategically important for our business," said Mr. Kunihisa Furukawa, President of Green Hospital Supply. "We have identified Cytori's StemSource™ Cellbank product as one of the primary foundations of our future growth. In addition, we believe their vision, products and business model will create the global leader in regenerative medicine."

"This strategic equity agreement strengthens our commercialization partnership with Green Hospital Supply, who will play an instrumental role in our future success," said Christopher J. Calhoun, chief executive officer of Cytori Therapeutics. "Simultaneously this deal provides us with capital to invest in the development and commercialization of our Celution™ System."

StemSource™ Cellbank

The StemSource™ Cellbank is a premier product in Japan for hospitals who wish to offer adult stem cell banking. The StemSource™ Cellbank will be commercialized to hospitals in Japan by Green Hospital Supply, Inc, in partnership with Cytori Therapeutics, Inc. The foundation of the StemSource™ Cellbank is Cytori's proprietary Celution™ System, which automates the separation and concentration of stem and regenerative cells residing within adipose tissue so they may be prepared for cryopreservation. (www.stemsource.jp)

Cytori Therapeutics

Cytori Therapeutics' (NASDAQ:CYTX) goal is to be the global leader in regenerative medicine. The company is dedicated to providing patients with new options for reconstructive surgery, developing treatments for cardiovascular disease, and banking patients' adult stem and regenerative cells. To reach its goal, Cytori has developed its innovative Celution™ System to separate and concentrate a patient's own adult stem and regenerative cells from adipose (fat) tissue for these cells to be delivered back to the patient during the same surgical procedure. In 2008, the Celution™ System is being introduced in Europe into the reconstructive surgery market and launched in Japan for cryopreserving a patient's own stem and regenerative cells. Clinical trials are ongoing or planned in cardiovascular disease, spinal disc degeneration, gastrointestinal disorders, and other unmet medical needs. (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.

Source: Business Wire

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