Cytori Completes Equity Agreement; Funding to Support ADVANCE Clinical Trial & Other Corporate Initiatives

SAN DIEGO, CA--(Marketwire - Jul 12, 2011) - Cytori Therapeutics (NASDAQ: CYTX) entered into an equity purchase agreement with Seaside 88, LP ('Seaside'). As part of the agreement, Seaside completed the purchase of 1,326,262 common shares of Cytori at $4.52 per share for gross proceeds of $6,000,000 and committed to purchase an additional 5,000,000 shares of common shares over a nine month closing period beginning August 12. The Company has reserved the right at any time to terminate the agreement without penalty.

"Having secured this commitment, we believe the benefits of successive closings, potentially at higher market prices if certain value drivers are achieved, is superior to a single equity placement at this time," said Mark E. Saad, Chief Financial Officer of Cytori. "In addition to funding the ADVANCE European pivotal trial, proceeds from the offering will be used to support our efforts to initiate a U.S. cardiac clinical trial, achieve a European indication-for-use for the Celution^® System in treating no-option chronic myocardial ischemia patients, obtain Celution^® System regulatory approvals or clearances in additional countries, and achieve a significant strategic partnership."

The purchase price for the initial closing of the transaction was determined by a 12% discount to the trailing ten day volume weighted average share price of $5.14. Each future closing of 250,000 shares will be determined by a 9.75% discount to the weighted average trailing price at that time and occur biweekly beginning August 12 until either the total 5,000,000 shares are acquired or the agreement is terminated.

Cytori is offering the securities in this agreement pursuant to a shelf registration statement previously filed with the Securities and Exchange Commission ("SEC") and declared effective by the SEC on May 9, 2011. The offering is being made only by means of a prospectus. Copies of the final prospectus supplement and accompanying base prospectus relating to the offering can be obtained from Cytori's Investor Relations Department at 3020 Callan Rd., San Diego, CA 92121, or from the U.S. Securities and Exchange Commission's website 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

Cytori is a leader in cell therapy, providing patients and physicians around the world with medical technologies that harness the potential of adult regenerative cells from adipose tissue. The Celution^® System family of medical devices and instruments is being sold into the European and Asian cosmetic and reconstructive surgery markets but is not yet available in the United States. Our StemSource^® product line is sold globally for cell banking and research applications. Our PureGraft™ products are available in North America and Europe for fat grafting procedures. www.cytori.com

Cautionary Forward-Looking Statements

This press release includes forward-looking statements regarding future events and expectations, in particular the Company's current expectations relating to the timing of our planned clinical trials, obtaining regulatory approvals for our products, the ability to enter into strategic partnerships, anticipated transaction closings of the sale of common stock and the anticipated use and application of net proceeds. These forward-looking statements involve risks and uncertainties, many of which are beyond the Company's control, including risks and uncertainties relating to the Company's successful commercialization of its products, outcomes from ongoing and planned clinical trials, and obtaining regulatory approvals. For additional disclosure regarding these and other risks faced by Cytori Therapeutics, including but not limited to uncertainties in transitioning from a research and development-stage company to a commercial-stage organization, a history of operating losses, dependence on third party performance, and maintaining sufficient capital resources, refer to and carefully review the section titled "Risk Factors" in Cytori's filings with the SEC, including its annual report on Form 10-K for the year ended December 31, 2010 and subsequent quarterly reports on Form 10-Q. Cytori assumes no responsibility to update any forward-looking statements contained in this press release to reflect events, trends or circumstances after the date of this press release.