Cytori Therapeutics : Case Report Illustrates the Potential Value Cytori Cell Therapy in Treating Chronic Effects of Radiation Damage

Dear Investors,

A scientific article published in the August 2016 edition of Health Physics presents a report of a worker who received an estimated radiation dose of 12-19Gy to his thumb in an industrial accident. Delivery of 12-19Gy to the whole body would be fatal; when delivered to a subset of the body it results in substantial tissue destruction. The patient was evaluated and followed at the Radiation Emergency Assistance Center/Training Site in Oak Ridge, TN. After recurrent persistent tissue breakdown following conventional therapy-including 90 hyperbaric oxygen treatments-the patient was referred for treatment using Cytori Cell Therapy.

The patient received a single treatment of Cytori Cell Therapy and, 13 months later, the tissue remained healed with an improvement in symptoms. The article can be found by following this link.

This single case report illustrates the potential value Cytori Cell Therapy in treating the chronic effects of radiation damage to tissue. Cytori has an active contract with the US government to fund up to $106m of preclinical and clinical development activities associated with use of Cytori Cell Therapy in burns, including those complicated by radiation exposure. Preclinical research performed under this contract has reported that Cytori Cell Therapy leads to accelerated healing of cutaneous burns in animals exposed to sub-lethal full body irradiation (manuscript under review, link to release here). The data from this research showed more rapid healing of the outer skin layer, termed epithelialization, higher blood vessel density, and greater collagen deposition. Importantly, the radiation dose received by the patient's thumb in this case report was considerably greater than that used in our preclinical studies. This suggests a broader potential value of our technology to the US government and the medical community extending to injuries related to radiation alone, as well as those with thermal injury complicated by radiation exposure (the basis of our present contract).

Thank you for your ongoing interest and support.

John K. Fraser, PhD
Chief Scientist- Cytori Therapeutics

About Cytori Therapeutics

Cytori Therapeutics is a late stage cell therapy company developing autologous cell therapies from adipose tissue to treat a variety of medical conditions. Data from preclinical studies and clinical trials suggest that Cytori Cell Therapy acts principally by improving blood flow, modulating the immune system, and facilitating wound repair. As a result, Cytori Cell Therapy may provide benefits across multiple disease states and can be made available to the physician and patient at the point-of-care through Cytori's proprietary technologies and products. For more information: visit www.cytori.com.

Cautionary Statement Regarding Forward-Looking Statements

This release includes forward-looking statements regarding events, trends and business prospects, which may affect our future operating results and financial position. Such statements, including, without limitation, statements regarding the potential value of Cytori Cell Therapy in helping to treat the chronic effects of radiation damage to tissue (including the therapy's value to the US government and the medical community for injuries related to radiation alone, and its potential value in treating patients with thermal injury complicated by radiation exposure), the potential effects of Cytori Cell therapy (including potentially accelerated healing of cutaneous burns in animals exposed to full body irradiation, more rapid healing of the outer skin layer generally, higher blood vessel density, and greater collagen deposition), are subject to risks and uncertainties that could cause our actual results and financial position to differ materially. These risks and uncertainties, which include inherent uncertainties in the results of our pre-clinical and clinical trials regarding radiation and thermal injury, availability of future government funding and changes in government procurement priorities, the U.S. government's ability to reduce funds available under, or otherwise modify or terminate, our BARDA contract, and related regulatory uncertainties, are described under the heading 'Risk Factors' in Cytori's Securities and Exchange Commission Filings on Form 10-K and Form 10-Q. We assume no responsibility to update or revise any forward-looking statements to reflect events, trends or circumstances after the date they are made.

Cytori Therapeutics, Inc.
Tiago Girao, +1 (858) 458.0900
ir@cytori.com