Cytori Therapeutics : Investor Note: First Patient Treated in the U.S. STAR Trial

Dear Investors,

Cytori recently treated our first patient in our STAR trial for scleroderma related hand dysfunction. I was fortunate to be involved in the procedure (as an observer only), and I would like to highlight to our investors several aspects of the case and this trial.

First, let me give a brief overview of the case. The procedure was performed at Baptist Medical Center in Little Rock, Arkansas. Baptist Health has a very active clinical research group led by Dr. Clint W. Abner and a statewide referral network of scleroderma patients. The patient had longstanding scleroderma and significant hand involvement.

The patient first underwent a small abdominal fat harvest similar to a cosmetic liposuction using surgical equipment from Cytori. The patient was awake during the procedure and received a mix of intravenous sedation and local anesthesia in the procedure room to provide analgesia during the small volume fat harvest procedure.

Immediately following the harvest, the patient left the procedure room for recovery. While the patient recovered, the fat tissue was placed into the Celution 800 system embedded with a new software version designed to improve the cellular manufacturing process for the STAR trial and these patients.

Approximately 90 minutes later a dose of 40 million cells was prepared along with a placebo dose containing blood-tinged saline indistinguishable from the syringe containing the active therapeutic, ECCS-50.

After randomization, the selected syringe was emptied into ten 1mL syringes each containing approximately 4 million cells. The surgeon, in the recovery room, prior to discharge of the patient to her home, delivered the syringe contents, one syringe to each finger through two, small, 25 gauge needle sticks per finger. The patient had received a small dose of IV analgesia, but no other specific anesthesia in the extremities and required no bandaging after injection. She left the hospital soon thereafter. The cell injection procedure took approximately a half hour and there were no periprocedural complications.

"Scleroderma is a multifaceted disease with hand disability being a severe problem for patients and currently there are no solutions that provide significant relief," said Dr. Clint W. Abner, Director of Operations and Business Development, Baptist Health Center for Clinical Research. "The Cytori procedure was well tolerated in our first enrolled patient and our team here is very excited about the procedure and we are dedicated to the STAR clinical trial".

So what's relevant about this first case to investors:

• Cytori has successfully and uneventfully begun its first ever U.S. approval trial.
• Consistent with our experience in treating scleroderma in Europe, this patient tolerated the procedure well.
• Although the scleroderma patient population tends to be thin, the fat harvest procedure and injection can be performed in a straightforward fashion and was well tolerated.
• Cytori's new software code and Celution 800 configuration functioned admirably in the production of the ECCS-50 cellular therapeutic.

Our Cytori team would like to thank the team and Baptist Hospital for the wonderful care given to this patient, the meticulous attention to detail in the execution of the trial and congratulate them on treating the first patient in the United States with this innovative technology.

STAR is an eighty patient randomized, double blinded controlled trial of a single dose of the ECCS-50 therapeutic compared to placebo in up to 20 centers in the United States. Details of the trial including inclusion and exclusion criteria can be found at the following links:https://clinicaltrials.gov/ct2/show/NCT02396238?term=Cytori&rank=5andhttp://www.startrial-us.com/

The STAR trial was predicated on promising data from the European phase II/pilot trial named SCLERADEC which was published in 2014 (Granel et al. Annals of Rheumatic Diseases) and reported data suggesting that the treatment was safe and potentially effective in improving certain hand symptoms in patients with scleroderma. The data canbe found at the following link:

http://ard.bmj.com/content/early/2014/08/10/annrheumdis-2014-205681.full .

Subsequent follow up of the SCLERADEC patients at 12 months revealed that the beneficial effect of Cytori's ECCS-50 therapy in scleroderma persisted at least to 12 months and that data has been accepted for publication and is currently in the press.

Sincerely,

Dr. Marc H. Hedrick, President and Chief Executive Officer

About Cytori Therapeutics, Inc.

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: visitwww.cytori.com .

Cautionary Statement Regarding Forward-Looking Statements

This press 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, those regarding conduct of and prospective data from our STAR clinical trial, as well as product performance, are all subject to risks and uncertainties that could cause our actual results and financial position to differ materially. Some of these risks and uncertainties include, but are not limited to, risks related to our history of operating losses, the need for further financing and our ability to access the necessary additional capital for our business, inherent risk and uncertainty in the protection intellectual property rights, regulatory uncertainties, risks in the conduct of clinical trials, risks in the collection and results of clinical data, final clinical outcomes, dependence on third party performance, performance and acceptance of our products in the marketplace, as well as other risks and uncertainties 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