NHS National Innovation Centre Identifies Celution(R) as Cost-Effective Innovative Technology for Partial Breast Reconstruction

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Cytori Therapeutics, Inc. (NASDAQ: CYTX) today announced that results from an economic analysis carried out by the UK NHS National Innovation Centre identified the Celution® System for breast reconstruction as an innovative technology that is bringing benefits to National Health Service (NHS) hospitals and breast cancer patients.

The analysis compared the cost and patient benefit resulting from Celution®-based cell-enriched reconstruction with that of fat grafting, (lipomodelling). While there is currently no single commonly accepted standard-of-care for lumpectomy reconstruction, fat grafting is one of the procedures that may be offered to patients. When fat grafting is performed, it has been reported to require an average of three procedures to repair the defect, illustrating the need for new and improved options.

"The use of lipomodelling for reconstruction after breast cancer surgery has become a common technique," said Mr. Brian Winn, Head of Technology and Product Innovation at the NHS National Innovation Centre. "However, in patients who have undergone radiation therapy, repeat procedures are often required. Cytori's Celution® System supplements a fat graft with a patient's own adipose-derived regenerative cells to improve graft take and help regenerate damaged tissue. This minimally invasive treatment approach could reduce or eliminate the practice of repeat procedures, leading to significant cost savings for the NHS."

NHS figures state that 46,000 cases of breast cancer are diagnosed in the UK every year. According to the National Mastectomy and Breast Reconstruction Audit 2011, many women who choose reconstruction will experience improved psychological, emotional and physical outcomes.

"Cell-enriched fat grafting is the most important and exciting new technique in reconstructive surgery in particular for patients whose treatment by other techniques were not effective or available," said Consultant Plastic and Reconstructive Surgeon Mrs. Eva Weiler-Mithoff, who practices at NHS Glasgow Royal Infirmary Hospital and the Nuffield Health Glasgow Hospital. "The apparent benefits of the technique are correction of contour defects after breast conservation surgery, but its most important contribution lies in soft tissue defects after radiotherapy or wounds that can be improved by the body's own repair cells."

"The National Innovation Centre's recognition is important since it may support wider adoption of cell-enriched reconstruction within the United Kingdom," said Dr. Eric Daniels, Managing Director for Cytori Europe. "Together with our NHS customers, we are continuing our programs to train more surgeons in cell-enriched reconstruction to make this treatment available to patients across the UK."

Further information about cell-enriched reconstruction can be found at www.cellreconstruct.eu. To learn more about the NHS National Innovation Centre please visit www.nic.nhs.uk.

About ADRCs

Adipose-derived stem and regenerative cells encompass a group of cells, including adult stem cells, endothelial progenitor cells, tissue resident macrophages, microvascular cells, and vascular smooth muscle cells. The cells can be readily extracted from fat tissue and are believed to increase survival rate for fat transplantation from one part of the body to another by bringing the necessary oxygen and nutrients to the transplant area. This helps the body to heal, rather than scar.

About the Cell-Enriched Breast Reconstruction

Cell-enriched breast reconstruction utilises the body's own fat, enriched with stem and regenerative cells, to rebuild the breast's contour following breast cancer surgery. Cell-enriched reconstruction can be performed alone as a standalone reconstructive technique or in combination with synthetic implants. Fat is withdrawn via liposuction from the stomach, hips, thighs, or other area determined to provide the necessary tissue. A portion of this tissue is processed to extract stem and regenerative cells which naturally reside within the tissue. The cells are then combined with another sample of fat, forming a cell-enriched fat graft which is used to correct breast defects or asymmetry.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements regarding events, trends and business prospects, such as statement regarding the effectiveness of cell-enriched breast reconstruction to improve: fat graft retention, radiotherapy damage and wounds, and the effects of the economic analysis on commercial adoption of the procedure, which could 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, inherent risk and uncertainty in the protection of intellectual property rights, regulatory uncertainties, limited clinical data, dependence on third party performance, and other risks and uncertainties described under the "Risk Factors" in Cytori's Securities and Exchange Commission Filings, including its annual report on Form 10-K for the year ended December 31, 2010. Cytori assumes no responsibility to update or revise any forward-looking statements contained in this press release to reflect events, trends or circumstances after the date of this press release.
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