Cyberkinetics' Neural Sensing Technology Highlighted in Second Study Published in Nature.

FOXBOROUGH, Mass. -- Stanford Research Team Reports Findings that Support Feasibility of Brain Computer Interface Technology to Assist Those with Neurological Diseases or Injuries

Cyberkinetics Neurotechnology Systems, Inc. (OTCBB: CYKN; "Cyberkinetics") announced today that preclinical results reported by a team of researchers from Stanford University's Schools of Engineering and Medicine were published in the July 13, 2006, issue of the journal Nature. Scientific findings from the first participant in the Company's ongoing pilot clinical trials of the BrainGate Neural Interface System (BrainGate) were featured on the cover of the same issue. The Stanford team used Cyberkinetics' research products line of neural interface technology to demonstrate the ability to obtain accurate, high-speed neural recordings that can immediately be translated into a prediction of intended movement. This research underscores the feasibility for using neural signals as the basis for brain-computer interfaces (BCI) that could be developed to enable those with nervous system injuries or diseases to operate external devices that require fast, accurate selections, such as typing.

In the study, published in "Letters" to Nature, the authors describe a significant advance in discrete, high-speed, high-accuracy neural decoding in a preclinical model using the Cyberkinetics' electrode and data acquisition technology. These findings include the ability to voluntarily generate signals in the dorsal pre-motor cortex, the area of the brain responsible for the planning, selection and execution of movement. While accuracy levels have been previously published, the current study reveals unprecedented speed in retrieving and interpreting the neural signals that can be applied to the operation of external devices that require fast, accurate selections, such as typing. The researchers also found that, by locating the Cyberkinetics neural sensor in this area, they were able to immediately translate neural activity into a prediction of the intended movement in order to place a computer cursor directly on an intended target.

According to John Donoghue, Chief Scientific Officer of Cyberkinetics, and a co-inventor of the BrainGate technology, "The results achieved from this study demonstrate the utility and versatility of Cyberkinetics' neural sensing technology to achieve very rapid, accurate decoding - about as fast as humans ordinarily make decisions to move when asked. The contributions of complementary research with our electrode and data acquisition technology should enhance our development of the BrainGate System in its ability to, one day, enable those with severe paralysis or other neurological conditions to lead more independent lives."

"Through our research using these implanted electrodes we have achieved a level of performance (6.5 bits per second) that is roughly four times that achieved with electroencephalogram (EEG) systems to date," commented Krishna V. Shenoy, Ph.D., senior author of the study and Assistant Professor, Department of Electrical Engineering and Neurosciences Program at Stanford University. "Our study strongly suggests that high-performance brain-computer interfaces benefit from the use of individual neural signals as recoded by implantable electrodes."

"We are extremely pleased that Dr. Shenoy's team was able to achieve these groundbreaking results using Cyberkinetics' unique and powerful direct neural sensing technology," said Timothy R. Surgenor, President and Chief Executive Officer of Cyberkinetics. "As this study demonstrates, the same technology that has to Cyberkinetics dramatic achievements in the BrainGate pilot clinical trial, has provided these Stanford researchers a valuable research platform to generate breakthrough research that could ultimately lead to improved medical practice."

About the BrainGate System

The BrainGate Neural Interface System is a proprietary, investigational brain-computer interface (BCI) that consists of an internal sensor to detect brain cell activity and external processors that convert these brain signals into a computer-mediated output under the person's own control. The ultimate goal of the BrainGate System development program is to create a safe, effective and unobtrusive universal operating system that will enable those with motor impairments resulting from a variety of causes to quickly and reliably control a wide range of devices, including computers, assistive technologies and medical devices, simply by using their thoughts.

Co-authors of the study at Stanford University include: Gopal Santhanam, M.S., doctoral student in the Department of Electrical Engineering; Stephen I. Ryu, M.D., Clinical Assistant Professor in the Department of Neurosurgery; Byron. M. Yu, M.S., doctoral student in the Department of Electrical Engineering; Afsheen Afshar, M.S., doctoral student in the Department of Electrical Engineering and in the Medical Scientist Training Program, School of Medicine; and Krishna V. Shenoy, Ph.D., Assistant Professor in the Department of Electrical Engineering and in the Neurosciences Program, School of Medicine.

About Cyberkinetics Neurotechnology Systems, Inc.

Cyberkinetics Neurotechnology Systems, Inc., a leader in the neurotechnology industry, is developing neural stimulation, sensing and processing technology to improve the lives of those with severe paralysis resulting from spinal cord injuries, neurological disorders and other conditions of the nervous system. Cyberkinetics' product development pipeline includes: the NeuroPort(TM) System, a cleared-to-market neural monitor designed for acute inpatient applications and labeled for temporary (less than 30 days) recording and monitoring of brain electrical activity; the Andara(TM) Oscillating Field Stimulator (OFS) Device, an investigative device designed to stimulate regeneration of the neural tissue surrounding the damaged spinal cord; and the BrainGate System, an investigative device designed to provide communication and control of a computer, assistive devices, and, ultimately, limb movement for persons with movement disabilities. Additional Information is available at Cyberkinetics' website at http://www.cyberkineticsinc.com.

Forward-Looking Statements

This announcement contains forward-looking statements, including statements about Cyberkinetics' product development plans and progress, potential development of proprietary inventions and benefits that may be realized by certain research programs. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and can be identified by the use of forward-looking terminology such as "may," "will," "believe," "expect," "anticipate" or other comparable terminology. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements and reported results shall not be considered an indication of our future performance. Factors that might cause or contribute to such differences include our limited operating history; our lack of profits from operations; our ability to successfully develop and commercialize our proposed products; a lengthy approval process and the uncertainty of FDA and other governmental regulatory requirements; clinical trials may fail to demonstrate the safety and effectiveness of our products; the degree and nature of our competition; our ability to employ and retain qualified employees; compliance with recent legislation regarding corporate governance, including the Sarbanes-Oxley Act of 2002; as well as those risks more fully discussed in our public filings with the Securities and Exchange Commission, all of which are difficult to predict and some of which are beyond our control.