Cytori Divests Puregraft® Products, Licenses Celution® for Alopecia and Options Broader Aesthetic Market Rights

  Cytori Divests Puregraft® Products, Licenses Celution® for Alopecia and
  Options Broader Aesthetic Market Rights

Business Wire

SAN DIEGO -- July 31, 2013

Cytori Therapeutics (NASDAQ: CYTX) has entered into a $15 million three-part
agreement with Bimini Technologies and its affiliates, Puregraft Technologies
and Kerastem Technologies. First, Cytori has sold global manufacturing and
commercialization rights for the Puregraft® product line. In exchange, Cytori
has received a $5 million upfront payment and will receive up to an additional
$10 million from commercial milestones related to future Puregraft® sales. In
addition, Bimini has acquired global, exclusive rights to commercialize the
Celution® System for Alopecia (Hair Field). Under the commercial agreement,
Bimini will be responsible for all clinical studies, regulatory approvals and
market development activities for Alopecia and will pay Cytori perpetual
royalties on sales. Finally, Bimini has acquired an exclusive option to
license Celution® products for the global aesthetics market. The option is
effective until December 31, 2013.

“This transaction enables Cytori to monetize a non-core product, Puregraft®,
simultaneously increase operational focus on core Celution® cell therapeutic
applications and market development, and establish a strategic partnership in
the development of new market opportunities in Alopecia,” said Christopher J.
Calhoun, CEO for Cytori. “Under this agreement, Cytori maintains certain
limited rights to Puregraft® and the related technology and receives an
exclusive license from Bimini for cell-enriched applications and future
development activities (in exchange for royalty payments on Puregraft® from
Cytori to Bimini), which in the aggregate, represent significant market
opportunities for Cytori.”

“Our vision is to develop a leading company in the expanding cash-pay
aesthetics market,” reported Bradford Conlan, CEO of Bimini. “Puregraft®
represents a best-in-class solution that addresses the emerging fat grafting
market. Expanding into the Alopecia market adds depth and innovation to our
portfolio and increases potential utilization of Puregraft® as an integrated
component with Celution® in the hair growth procedure. Additionally, we will
continue negotiations to acquire market rights from Cytori for the cell-based
aesthetics market beyond Alopecia, which are actively underway and represent
the next major step in expanding our portfolio.”

About Puregraft®

Puregraft® is an FDA-approved fat grafting product that allows patients to
receive injections of their own fat in a single outpatient procedure. Cytori
originally developed Puregraft® to be used in combination with its cell
therapy technology. Given its simplicity and performance, Cytori has been
offering Puregraft® as a stand-alone product to physicians in the U.S., Asia
and Europe since 2010.

About Bimini Technologies

Bimini is a newly formed company and is based in San Diego, California.
Bradford Conlan, who has been part of the Cytori team for nearly 9 years
developing and marketing both the Puregraft® and Celution® products, is the
founding CEO of Bimini, as well as its affiliates Puregraft Technologies and
Kerastem Technologies. Additionally, Brad is joined by a small group of
seasoned entrepreneurs and investors including James Conlan, Rich Heise, Jr.,
John Gasparovic, and Larry Nyhan. The experience, knowledge, and resources of
each of the founders will provide Bimini a significant advantage in creating a
successful new company focused exclusively on the global aesthetics market.

About Cytori Therapeutics, Inc.

Cytori Therapeutics is developing cell therapies based on autologous
adipose-derived regenerative cells (ADRCs) to treat cardiovascular disease and
other medical conditions. Our scientific data suggest ADRCs improve blood
flow, moderate the inflammatory response and keep tissue at risk of dying
alive. As a result, we believe these cells can be applied across multiple
“ischemic” conditions. These therapies are made available to the physician and
patient at the point-of-care by Cytori’s proprietary technologies and
products, including the Celution® System product family. www.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 those regarding potential
milestones and execution of additional licensing agreements 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
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.

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Contact:

Cytori Therapeutics
Investors
Tom Baker, +1-858-875-5258
tbaker@cytori.com
or
Media
Megan McCormick, +1-858-875-5279
mmccormick@cytori.com
 
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