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CytoSorbents Provides Corporate Update and Reports Financial Results for the Period Ended June 30, 2013

CytoSorbents Provides Corporate Update and Reports Financial Results for the 
Period Ended June 30, 2013 
MONMOUTH JUNCTION, NJ -- (Marketwired) -- 08/14/13 --  CytoSorbents
Corporation (OTCBB: CTSO), a critical care focused company
commercializing its European Union approved CytoSorb(R) blood filter
to treat life-threatening illnesses in the intensive care unit,
provides a corporate update and reports its financial results for the
three and six month period ending June 30, 2013. 
Operational Highlights: 


 
--  Publication of our first CytoSorb(R) case report study in the
    medical journal, Blood Purification, reporting the successful
    reduction in cytokines and vasopressor support in a case of
    Staphylococcus aureus septic shock in a patient who survived at the
    University of Rostock, Germany
    
    
--  Submission for publication of another successful case report study in
    the treatment of rhabdomyolysis from Vienna General Hospital (AKH),
    Austria -- one of the largest hospitals in Europe. A number of other
    case reports are in preparation from other hospitals
    
    
--  Registration of two new investigator initiated clinical studies: One
    at University of Greifswald, Germany for the treatment of septic shock
    and one for the use of CytoSorb(R) in cardiac surgery at the
    Medical University of Vienna, Austria. These are the first of 18
    investigator studies being planned, an increase from 10 studies
    earlier this year
    
    
--  Acceptance of two abstracts at the German Sepsis Society meeting in
    Weimar, Germany (September 4-6, 2013). One is from the University of
    Ulm, Germany, concerning the first successful fungal sepsis case
    treated. The other is from Trauma Hospital in Linz, Austria for the
    treatment of a septic shock patient with liver cirrhosis. Both treated
    patients survived.
    
    
--  An increase in our key opinion leader network to approximately 100
    leaders in the field of critical care
    
    
--  Announcement that the FDA has approved a US Air Force funded
    30-patient randomized controlled pilot study for the treatment of
    trauma and rhabdomyolysis to start this year -- our first United
    States based critical care trial
    
    
--  Expansion of sales distribution to the United Kingdom/Ireland and
    Turkey, with exclusive distributorships with L.IN.C Medical and Hitit
    Medical, and ongoing discussions with other partners for distribution
    in other countries
    
    
--  Appointment of Dr. Rainer Kosanke as our European Scientific Director,
    formerly responsible for helping to introduce the procalcitonin (PCT)
    assay into the German speaking markets, which is now the current gold
    standard for diagnosing bacterial infection and sepsis in Europe
    
    
--  Presentation by Dr. Chan to an audience of approximately 200 people,
    including leaders in military blood research, after being selected to
    speak on our HemoDefend(TM) blood transfusion platform at the
    largest military healthcare conference in the United States, the
    Military Health System Research Symposium

  
Financial Highlights: 


 
--  Started our Year 2 technology development with DARPA in the
    Dialysis-Like Therapeutics program to treat sepsis, with second year
    milestones worth more than $1.5 million. We are working closely with
    Battelle Laboratories, the newly designated systems integrator, and
    its subcontractor NxStage Medical, to incorporate our cytokine and
    toxin removal technologies into the design of the final device
    prototype
    
    
--  Successfully completed our $1 million US Army Phase II SBIR contract
    negotiations and commenced our Phase II work with research leaders at
    the US Army Institute of Surgical Research (USAISR) in San Antonio
    using CytoSorb(R) in porcine burn injury and trauma models. USAISR
    is one of the nation's premier military joint research organizations,
    performing advanced research in burn injury, trauma, and other combat
    casualty care
    
    
--  Revenue for the first six months of 2013 totaled $663,000, with an
    increase in CytoSorb(R) product sales to $304,000 as compared to
    $50,000 for the same period the prior year
    
    
--  Revenue for the 2013 second quarter totaled $291,000, with an increase
    in CytoSorb(R) sales to $128,000 versus $33,000 for the same period
    the prior year
    
    
--  Gross profit margins for the 2013 second quarter was 61.3%

  
Dr. Phillip Chan, Chief Executive Officer, stated "We are beginning to
see the fruits of our labor, with robust activity across many fronts.
Our sales and marketing team has done an outstanding job in
introducing CytoSorb(R) into our direct target markets of Germany,
Austria and Switzerland. Looking at a map of Germany, our team of
four salespeople have created a broad foothold with product sales,
new clinical studies, case reports, and ongoing discussions in the
university and public hospitals across most of the major cities in
Germany and a growing number of hospitals in Austria. This is a
tremendous accomplishment in a relatively short period of time since
our CytoSorb(R) launch in the second half of last year. Now that we
have established this broad exposure and key opinion leader support
in this past phase, our focus now is to drive sales growth by
drilling down into these accounts with an expanded sales force, and
spurring usage and end user demand amongst daily treating physicians
in these departments." 
Financial Results for the First Six Months Ended June 30, 2013 
For the six months ended June 30, 2013, the Company generated revenue
of approximately $663,000 as compared to revenues of approximately
$133,000 for the six months ended 2012, an increase of 497%. Revenue
from product sales was approximately $304,000 in the first half of
2013, as compared to approximately $50,000 in the first half of 2012,
an increase of 609%. This increase in product sales is a result of
our direct sales force as well as sales to distributors in other
parts of Europe and the Middle East. Product gross margins were
approximately 60% for the six months ended June 30, 2013. Revenue
from grants was approximately $359,000 in the first half of 2013, as
compared to approximately $83,000 in the first half of 2012. 
Our net loss for the six months ended June 30, 2013 was approximately
$3,044,000 as compared to a net loss of approximately $2,474,000 for
the six months ended June 30, 2012. 
Financial Results for the Second Quarter Ended June 30, 2013 
CytoSorbents generated revenues of approximately $291,000 and $83,000
for the three months ending June 30, 2013 and June 30, 2012,
respectively. Product revenues were approximately $128,000 for the
quarter ended June 30, 2013, as compared to product revenues of
$33,000 for the three months ended June 30, 2012. Product gross
margins were 61.3% for the quarter ended June 30, 2013. Additionally,
grant revenue and other income approximated $164,000 and $50,000 for
the three month periods ended June 30, 2013 and 2012, respectively. 
Our net loss for the three months ending June 30, 2013 was
approximately $1,415,000 as compared to a net loss of approximately
$1,047,000 for the three months ended June 30, 2012. 
On June 30, 2013 our cash balances were approximately $1,871,000 as
compared to cash balances of approximately $1,729,000 as of December
31, 2012.  
For additional information please see the Company's 10-Q report for
the period ended June 30, 2013 filed on August 14, 2013 on
http://www.sec.gov.  
About CytoSorbents Corporation  
CytoSorbents is a critical care focused therapeutic device company
using blood purification to modulate inflammation - with the goal of
preventing or treating multiple organ failure in life-threatening
illnesses. Organ failure is the cause of nearly half of all deaths in
the intensive care unit, with little to improve clinical outcome.
CytoSorb(R), 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. CytoSorbents'
purification technologies are based on biocompatible, highly porous
polymer beads that can actively remove toxic substances from blood
and other bodily fluids by pore capture and surface adsorption.
CytoSorbents has numerous products under development based upon this
unique blood purification technology, protected by 32 issued US
patents and multiple applications pending, including HemoDefend(TM),
ContrastSorb, DrugSorb, and others. Additional information is
available for download on the Company's website:
http://www.cytosorbents.com 
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. Risk factors are detailed in the Company's
Form 10-K filed with the SEC on April 3, 2013, which is available at
http://www.sec.gov. 
Source: CytoSorbents Corporation  


 
                                                                            
                                                                            
                          CYTOSORBENTS CORPORATION                          
                        (a development stage company)                       
   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS   
                (amounts in thousands, except per share data)               
                                                                            
                          Six months ended           Three months ended     
                              June 30,                    June 30,          
                         2013          2012          2013          2012     
                      (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
                     ------------  ------------  ------------  ------------ 
Revenues                                                                    
  Sales              $        304  $         50  $        128  $         33 
  Grant income                359            83           163            50 
                     ------------  ------------  ------------  ------------ 
  Total revenues              663           133           291            83 
                                                                            
Cost of revenue               453            20           199            10 
                     ------------  ------------  ------------  ------------ 
                                                                            
Gross profit                  210           113            92            73 
                                                                            
Expenses:                                                                   
  Research and                                                              
   development              1,412         1,392           708           716 
  Legal, financial                                                          
   and other                                                                
   consulting                 413           235           190            74 
  Selling, general and                                                          
            
   administrative           1,214           563           601           293 
                     ------------  ------------  ------------  ------------ 
  Total operating                                                           
   costs and                                                                
   expenses                 3,039         2,190         1,499         1,083 
                                                                            
Operating loss             (2,829)       (2,077)       (1,407)       (1,010)
Other expenses, net           215           397             8            37 
                     ------------  ------------  ------------  ------------ 
Net loss before                                                             
 benefit from income                                                        
 taxes                     (3,044)       (2,474)       (1,415)       (1,047)
Benefit from income                                                         
 taxes                         --            --            --            -- 
                     ------------  ------------  ------------  ------------ 
Net loss                   (3,044)       (2,474)       (1.415)       (1,047)
Preferred stock                                                             
 dividend                   1,203         1,241           616           578 
                     ------------  ------------  ------------  ------------ 
Net loss available                                                          
 to common                                                                  
 shareholders        $     (4,247) $     (3,715) $     (2,031) $      1,625)
                     ============  ============  ============  ============ 
Earnings per share:                                                         
  Basic and diluted                                                         
   earnings per                                                             
   share             $      (0.02) $      (0.02) $      (0.01) $      (0.01)
Basic and diluted                                                           
 weight average                                                             
 shares outstanding   227,299,644   187,795,284   231,583,119   194,439,923 
                     ============  ============  ============  ============ 
                                                                            
Net loss             $     (3,044) $     (2,474) $     (1,415) $     (1,047)
Other comprehensive                                                         
 loss:                                                                      
  Currency                                                                  
   translation                                                              
   adjustment                  (3)           --            (1)           -- 
                     ------------  ------------  ------------  ------------ 
Comprehensive loss   $     (3,047) $     (2,474) $     (1,416) $      (1047)
                     ============  ============  ============  ============ 
                                                                            
                                                                            
                                                                            
                          CYTOSORBENTS CORPORATION                          
                        (a development stage company)                       
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                           (amounts in thousands)                           
                                                                            
                                               June 30, 2013   December 31, 
                                                (Unaudited)        2012     
                                               -------------  ------------- 
ASSETS:                                                                     
Cash and cash equivalents                      $       1,871  $       1,729 
Accounts receivable, net                                  84             52 
Inventories                                              476            683 
Prepaid expenses and other current assets                156            476 
                                               -------------  ------------- 
  Total current assets                                 2,587          2,940 
                                                                            
Property and equipment, net                              143            145 
Other assets                                             251            254 
                                               -------------  ------------- 
  TOTAL ASSETS                                 $       2,981  $       3,339 
                                               =============  ============= 
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
Accounts payable                               $         721  $         801 
Accrued expenses and other current liabilities           471            349 
Convertible notes payable, net                           912            926 
                                               -------------  ------------- 
  Total current liabilities                            2,104          2,076 
                                               -------------  ------------- 
  TOTAL LIABILITIES                                    2,104          2,076 
                                                                            
Redeemable Series B Convertible Preferred                                   
 Stock                                                14,062         12,888 
                                                                            
Total stockholders' equity                           (13,185)       (11,625)
                                               -------------  ------------- 
                                                                            
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY     $       2,981  $       3,339 
                                               =============  ============= 

  
Company Contact:
CytoSorbents Corporation
Dr. Phillip Chan
Chief Executive Officer
(732) 329-8885 ext. *823
pchan@cytosorbents.com 
Investor Contact:
Alliance Advisors, LLC
Alan Sheinwald
(914) 669-0222
asheinwald@allianceadvisors.net 
Valter Pinto
(914) 669-0222 x201
valter@allianceadvisors.net 
Media Contact:
JQA Partners
Jules Abraham
(917) 885-7378
jabraham@jqapartners.com
 
 
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