CytoSorbents Provides Corporate Update and Reports 2012 Year End Financial Results

CytoSorbents Provides Corporate Update and Reports 2012 Year End Financial

Q1 2013 CytoSorb(R) Product Revenue to Exceed Entire 2012 CytoSorb(R) Product

MONMOUTH JUNCTION, N.J., April 3, 2013 (GLOBE NEWSWIRE) -- CytoSorbents
Corporation (OTCBB:CTSO), a critical care focused company using blood
purification to treat life-threatening illnesses in the intensive care unit,
provides a shareholder update and reports its financial results for the fiscal
year ending December 31, 2012.

Highlights for the Year Ending December 31, 2012

  *Officially launched the CytoSorb® cytokine filter in the second half of
    2012 in Germany, Austria and Switzerland with a direct sales force led by
    our Vice President of Sales and Marketing, Dr. Christian Steiner.
    Reimbursement was established in Germany and Austria.
  *Total revenue for the year was $1.34 million, including grant income from
    DARPA and the U.S. Army, and initial CytoSorb® sales, with product gross
    margins greater than 50%.
  *CytoSorb® sales have been accelerating, with sales of CytoSorb® in the
    first quarter of 2013 exceeding CytoSorb® sales for all of 2012, and
    doubling from the previous quarter.
  *Experienced a strong market reception from more than 60 key opinion
    leaders in critical care medicine and other specialties who are either
    currently using or planning to use CytoSorb®, with at least six new
    investigator-initiated studies being planned.
  *Witnessing orders from a broad base of new customers, as well as re-orders
    from existing customers who have had success with CytoSorb^® across a wide
    range of critical care applications including sepsis, burn injury, trauma,
    lung injury, liver failure, pancreatitis, influenza and other
    life-threatening conditions.
  *Was awarded $5 million in milestone-based R&D contracts from DARPA for
    sepsis, and the U.S. Army for trauma and burn injury, of which $1.1
    million was recognized in 2012.
  *Advanced our product pipeline with solid progress on the HemoDefend
    platform that targets the improved safety of blood transfusion products,
    and introduction of ContrastSorb, a development stage polymer designed to
    efficiently remove IV contrast from blood following certain imaging or
    interventional radiology procedures to prevent kidney failure.

"While we are just at the ground floor of commercialization of CytoSorb®, one
only needs to visit an intensive care unit or speak to a physician or nurse to
understand the vast market and tremendous need for new therapies that can
actively help critically-ill patients.As a novel therapy targeting the
prevention or treatment of organ failure, the leading cause of death in the
ICU from any cause, CytoSorb^® has the unique potential opportunity to save
lives while reducing massive healthcare costs," stated Dr. Phillip Chan, CEO
of CytoSorbents."This revolutionary approach is fundamentally different from
the current standard of care 'life support' therapies that help keep patients
alive but don't actually help them get better. With CytoSorb^® targeting one
of the largest unmet medical needs in modern medicine, we believe that
CytoSorbents has the same or greater potential than many biotechnology
companies, but with the benefit of having an approved product on the market
generating revenue."

Fiscal Year 2012 Financial Results

For the year ended December 31, 2012, CytoSorbents reported $1.34 million in
revenue, consisting of $1.19 million in grant income from DARPA and the U.S.
Army, and $152K in CytoSorb® product sales.This compares to total revenue of
$36K in fiscal 2011.Overall, 2012 blended gross margins were 76%, with
product gross margins in excess of 50%.

The Company narrowed its operating loss to $3.5 million for the year ended
December 31, 2012, compared to an operating loss of $4.4 million in the year
ago period.Fiscal year 2012 results benefited from increased revenue from
grant income and product sales.The Company reported a net loss of $6.2
million for 2012 compared to a net loss of $8.6 million for the year ended
December 31, 2011.Results include a non-cash charge for preferred stock
dividends of $2.5 million in 2012 compared to $3.1 million in 2011.Cash used
by operating activities in 2012 was $3.6 million compared to $3.8 million in
2011.Cash and cash equivalents was $1.7 million as of December 31, 2012
compared with $1.2 million at December 31, 2011.

2013 First Quarter Revenue

CytoSorbents expects to report 2013 first quarter CytoSorb® product revenue in
the range of $170-180K (unaudited) with product gross margins in excess of

About CytoSorbents

CytoSorbents Corporation is a critical care focused therapeutic device company
using blood purification to modulate the immune system and fight multi-organ
failure in life-threatening illnesses.Its purification technology is based on
biocompatible, highly porous polymer beads that can actively remove toxic
substances from blood and other bodily fluids by pore capture and
adsorption.CytoSorb®, the Company's flagship product, is approved in the
European Union as a safe and effective extracorporeal cytokine filter,
designed to reduce the "cytokine storm" that could otherwise cause massive
inflammation, organ failure and death in common critical illnesses such as
sepsis, burn injury, trauma, lung injury, and pancreatitis.These are
conditions where the mortality is extremely high, yet no effective treatments
exist.Additional information is available for download on the Company's

Forward-Looking Statements

This press release includes forward-looking statements intended to qualify for
the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements in this press
release are not promises or guarantees and are subject to risks and
uncertainties that could cause our actual results to differ materially from
those anticipated. These statements are based on management's current
expectations and assumptions and are naturally subject to uncertainty and
changes in circumstances. We caution you not to place undue reliance upon any
such forward-looking statements. Actual results may differ materially from
those expressed or implied by the statements herein. CytoSorbents Corporation
and CytoSorbents, Inc believe that its primary risk factors include, but are
not limited to: obtaining government approvals including required FDA and
additional CE Mark approvals; ability to successfully develop commercial
operations; dependence on key personnel; acceptance of the Company's medical
devices in the marketplace; the outcome of potential litigation; compliance
with governmental regulations; reliance on research and testing facilities of
various universities and institutions; the ability to obtain adequate and
timely financing in the future when needed; product liability risks; limited
manufacturing experience; limited marketing, sales and distribution
experience; market acceptance of the Company's products; competition;
unexpected changes in technologies and technological advances; and other
factors detailed in the Company's Form 10-K filed with the SEC on April 3,
2013, which is available at

(a development stage company)
(amounts in thousands, except per share data)
                                                     Year Ended
                                                      December 31,
                                                     2012        2011
Sales                                                 $152      $36
Grant income                                          1,191       --
Total revenues                                        1,343       36
Cost of revenue                                       319         12
Gross profit                                          1,024       24
Research and development                              2,532       2,888
Legal, financial and other consulting                 627         343
Selling, general and administrative                   1,355       1,230
Total operating costs and expenses                    4,514       4,461
Operating loss                                        (3,490)    (4,437)
Other expenses, net                                   565        1,045
Net loss before benefit from income taxes             (4,055)    (5,482)
Benefit from income taxes                             (391)      --
Net loss                                              (3,664)    (5,482)
Preferred stock dividend                              2,511      3,087
Net loss available to common stockholders             $(6,175)  $(8,569)
Earnings per share:                                              
Basic and diluted earnings per share                  $(0.03)   $(0.05)
Basic and diluted weighted average shares outstanding 198,228,289 160,235,291

(a development stage company)
(amounts in thousands)
                                          December 31, 2012 December 31, 2011
Cash and cash equivalents                  $1,729          $1,186
Accounts receivable, net                   52               36
Inventories                                682              431
Prepaid expenses and other current assets  476              44
Total current assets                       2,939            1,697
Property and equipment, net                146              155
Other assets                               254              271
TOTAL ASSETS                               $3,339          $2,123
Accounts payable                           $801            $676
Accrued expenses and other current         350              558
Convertible notes payable, net             926              294
Total current liabilities                  2,077            1,528
Convertible notes payable, net             --              276
Total liabilities                          2,077            1,804
Redeemable Series B Convertible Preferred  12,887           10,408
Total stockholders' equity                 (11,625)         (10,089)
TOTAL LIABILITIES AND EQUITY               $3,339          $2,123

CONTACT: Company Contact:
         CytoSorbents Corporation
         Dr. Phillip Chan
         Chief Executive Officer
         (732) 329-8885 ext. *823
         Investor Contact:
         Alliance Advisors, LLC
         Alan Sheinwald
         (914) 669-0222
         Valter Pinto
         (914) 669-0222 x201
         Media Contact:
         JQA Partners
         Jules Abraham
         (917) 885-7378
Press spacebar to pause and continue. Press esc to stop.