CytoCore's Capital Structure Improves with First Quarter Financials.

CHICAGO -- CytoCore, Inc. (OTCBB:MCDG)

The Company announced with its first quarter financials interest expense was reduced by 59% from $401,000 in Q1 2005 to $164,000 for Q1 2006. Preferred dividends were reduced by 100% from $225,000 in Q1 2005 to $0 in Q1 2006. These results reflect continued improvement in the capital structure of the company. The first quarter 2006 results reflect expenses associated with our agreement, with Dr. George Gorodeski and University Hospital of Cleveland, to begin the product research work and the trails associated with that agreement. There were legal costs associated with ongoing arbitration against the former Chairman and CEO, Peter Gombrich. CytoCore reports a loss of $.01 per share for the first quarter ended March 31, 2006.

CytoCore's CFO, Robert F. McCullough Jr., stated: "The Company's capital structure continues to improve through the second quarter of 2006. We have settled the majority of liability claims at significant discounts to the amounts carried in the financial statements. During this quarter we converted approximately 33% of note holders to equity. Last week, holders of over 50% of the Preferred Stock yielding a 10% dividend, agreed to convert to equity. In the immediate future we expect to convert remaining note holders and much of the preferred stock to equity. We expect our second quarter results to positively reflect the completion of our financial restructuring efforts.

We are pleased to have settled this quarter with Diamics, Inc., and to have finished the majority of the arbitration litigation and associated expenses against the former Chairman and CEO of the Company, Peter Gombrich. We expect to substantially reduce our future legal expenses with the addition of Mr. Edward Renner as Vice President of Regulatory and Legal Affairs.

This quarter we have funded a significant amount of the expenses associated with the primary developmental stage for the endometrial cancer screen clinical trial for 2006. We continue to accelerate the progress in achieving our goals for the development and marketing of our products addressing very large markets."

About CytoCore Inc.

CytoCore develops cost-effective cancer screening systems, which can be utilized in a laboratory or at the point-of-care, to assist in the early detection of cervical, endometrial, and other cancers. The InPath(TM) System is being developed to provide medical practitioners with a highly accurate, low-cost, cervical cancer screening and treatment system that can be integrated into existing medical models or at the point-of-care. More information is available at: www.Molecular-Dx.com.

Certain statements in this release are forward-looking. These statements are based on CytoCore's current expectations and involve many risks and uncertainties, such as the company's inability to obtain sufficient financing, the possibility that clinical trials will not substantiate CytoCore's expectations with respect to the InPath(TM) System, and other factors set forth in reports and documents filed by CytoCore with the Securities and Exchange Commission. Actual results may differ materially from CytoCore's current expectation depending upon a number of factors affecting the Company's business. These factors include, among others, risks and uncertainties detailed in the Company's periodic public filings with the Securities and Exchange Commission, including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 2005. Except as expressly required by law, CytoCore undertakes no obligation to publicly update or revise any forward-looking statements contained herein.