CytoTools : withdraws planned convertible bond

• CytoTools AG withdraws the offer of a convertible bond issue at the end of the subscription period

• Approval in India leads to much lower capital requirements in financial planning

• Various alternatives for financing the clinical phases are being negotiated

Darmstadt, 5th May 2017 - The CytoTools AG, a technology holding company with shareholdings in the pharmaceutical and medical products fields, has withdrawn the offer to subscribe to a convertible bond with a total nominal amount of up to 600,000.00 EUR on the basis of the conditional capital 2016. This step was taken in consultation with all investors who wanted to subscribe.

The pre-committed financial resources would not have completely ensured the repeat of at least one of the planned phase III trials, and thus would not have been in accordance with the target of the issue of the convertible bond.

The board of the CytoTools AG is, however, optimistic that the required means for repeating the clinical trials can be generated through alternative financing possibilities. Thus, at the level of the DermaTools Biotech GmbH, the necessary strategic adjustments will be made and, in the coming weeks, additionally, further financing models will be negotiated. Here, in particular, new contacts in Asian countries regarding licensing agreements are being specifically targeted and, simultaneously, the goal of borrowing outside capital, on as small a scale as possible, is being followed up.

It should be stressed here that, due to the approval of the active substance DermaPro in India, in the medium-term, the capital requirements for the financial planning have already greatly decreased.

The work on the realisation of the medical product strategy was commenced according to plan. This can be carried out with the current liquidity reserve. The accompanying approach towards medical product manufacturers should, in the near future, ensure the sale, or establishment of partnerships, for this project.

Moreover, the company can confirm that, already only a few weeks after the market approval for India was obtained, the work on starting local production is almost completed.

This press release contains specific future oriented statements. These reflect the opinion of CytoTools on the date of this release. The actual results achieved by CytoTools could substantially deviate from the future- oriented statements made. CytoTools is not obligated to update these future-oriented statements.

CytoTools AG is a German biotechnology company focused on translating fundamental biology research on the mechanisms of cell growth and programmed cell death into unique therapies that are designed to treat the cause of the disease rather than the symptoms. The Company has developed a robust and diverse pipeline of disease modifying therapies that comprise proprietary small molecules and biologics. These have the potential to provide new treatment options in dermatology, cardiology and angiology, urology and oncology. CytoTools AG is structured as an investment and holding company and as such holds investments in its subsidiaries DermaTools Biotech GmbH (57%) and CytoPharma GmbH (42%).

CytoTools AG

Dr. Mark-André Freyberg Klappacher Str. 126

D-64285 Darmstadt

Tel.: +49-6151-95158-12

Fax: +49-6151-95158-13

E-Mail: freyberg@cytotools.de