Cytori Therapeutics to Raise $21.5 Million in Registered Direct Offering

SAN DIEGO -- Cytori Therapeutics, Inc. (NASDAQ:CYTX) (FWB:XMPA) entered into definitive agreements to raise $21.5 million, before placement agent fees and offering expenses. At closing, Cytori will issue 3.75 million shares of common stock at $5.74 per share with 50% warrant coverage, which represents up to an additional 1.87 million shares of common stock. The warrants have a five year term and are immediately exercisable at an exercise price of $6.25 per share.

The funds will be used for clinical trials of Cytori's Celution(TM) System for cardiovascular disease and breast reconstruction post lumpectomy, preclinical research and development, to support preparations to commercialize the Celution(TM) System in Europe in early 2008 for reconstructive surgery applications, and for general working capital.

The securities in this transaction were offered by Cytori pursuant to an effective shelf registration statement and a registration statement filed pursuant to Rule 462(b) promulgated under the Securities Act of 1933, as amended. Piper Jaffray & Co. served as the sole placement agent. The transaction is expected to close on or about February 28, 2007, subject to the satisfaction of customary closing conditions.

The offering is being made only by means of a prospectus and prospectus supplement. Copies of the prospectus and prospectus supplement relating to the offering can be obtained from Cytori's Investor Relations Department, 3020 Callan Rd., San Diego, CA 92121 or from the U.S. Securities and Exchange Commission at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sales of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Cytori Therapeutics

Cytori Therapeutics is developing and seeks to commercialize stem and regenerative cell therapies for cardiovascular disease, reconstructive surgery and many other serious chronic, and life threatening conditions. To provide these therapies, physicians remove a small amount of a patient's fat, also known as adipose tissue, and run it through Cytori's Celution(TM) System. This System quickly separates and concentrates stem and regenerative cells from adipose tissue so they may be quickly administered back to the patient about an hour later. This system will dramatically improve the way in which personalized cell-based therapies can be delivered to patients. 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, 2005 and subsequent SEC filings. We assume no responsibility to update or revise any forward-looking statements to reflect events, trends or circumstances after the date they are made.

Contacts

Cytori Therapeutics, Inc.
Tom Baker, 858-875-5258 (Investors)
tbaker@cytoritx.com
or
Porter Novelli Life Sciences
Amy Blackley, Ph.D., 619-849-6008 (Media)
ablackley@pnlifesciences.com