CytoCore Announces 2005 Financial Results.

CHICAGO -- CytoCore, Inc. (OTCBB:MCDG) announced its 2005 year end financial results where the Company continues to increase its positive financial momentum with significant improvement in operating results along with the recent announcement of new equity capital to provide for the launch and development of new products.

CytoCore significantly reduced its operating loss before interest and dividends for the December 2005 quarter and 2005 fiscal year. The loss for the December 2005 quarter was $68 thousand, a 92% reduction from the $924 thousand loss for the December 2004 quarter. The 2005 fiscal year loss before interest was $1.15 million, a 75% reduction from the $4.724 million loss for fiscal year 2004.

Overall, the Company reports a net loss of $4.346 million or $(.04) per share for 2005, a 70% reduction from the $14.601 million and $(.19) per share loss for 2004. Of the 2005 loss, 60% or $2.673 million is for the non cash expense of the unamortized note discount incurred with the conversion of notes to equity.

As further evidence of the effectiveness of the turn around, new management has reduced the operating loss before interest and preferred dividends by 99% to $20 thousand cumulative for the 3rd and 4th quarters of 2005, compared to an operating loss before interest and preferred dividends of $1.130 million for the first 6 months of 2005 and $4.724 million for 3rd and 4th quarters 2004.

Through 2006, the company will continue to reduce debt by converting note holders to equity and settling with vendors on reduced terms. The full impact of discounts from settlements negotiated in 2005 will not be realized until the settlements are fully paid.

As previously announced, the new equity capital obtained from institutional investors will provide for the launch of the E2 Collector; development and commencement of patient trials for the cervical and endometrial cancer markers and the cervical drug delivery device.

According to Chief Financial Officer, Robert F. McCullough Jr., "Most of the accrued liabilities and accounts payable should be settled in 2006 at amounts well below the amounts currently carried in the financial statements. We also look forward to strengthening the capital structure by converting much of the remaining notes and preferred stock to equity during Q2 2006. By significantly reducing the operating loss, we expect that most of the Company's resources in the foreseeable future will be focused to move the company forward; enhancing shareholder value through multiple product development programs and product sales for the Collector, AIPS and Endometrial Cancer Screen."

CytoCore's CEO, Dr. David Weissberg stated: "I am truly pleased to be able to report that we have been able to build off our year end results to increase our real momentum.

"We've been very successful in clearing up the liabilities and putting the company on sound financial footing, we changed the company name to better reflect the complete nature of the work being performed, and we settled an outstanding patent suit.

"The continued positive progress made in the financial turn around for the Company in four months at the end of 2005 paved the way during the first quarter of 2006 for the signing of a new strategic relationship with University Hospitals of Cleveland and Dr. Gorodeski, and the licensing of the two new products that enhance the InPath System. The power, impact and opportunity this new relationship and these new products represent for the Company and the InPath System can hardly be overstated.

--  The Company formed a new research relationship with UHC and
        Dr. Gorodeski. With Dr. Gorodeski's guidance, we will shortly
        begin the research efforts on our new products at UHC's
        Clinical Research facility.

    --  Through a technology transfer agreement with UHC and Dr.
        Gorodeski, the Company licensed two new products:

        --  The first is a distinctive new cancer bio-marker that
            expands the InPath System providing improved screening
            capability for both Cervical and Uterine cancers.

        --  Company is going to pursue early development of this new
            bio-marker as a uterine cancer screen, which it believes
            can be brought to market quickly - within 12 months. The
            opportunity is very large, as there is no cancer screen
            available at this time for uterine cancer.

        --  The second product is a unique new Drug Delivery System
            that will offer the physician for first time the ability
            to therapeutically treat cervical lesions. Treatment of
            questionable cervical lesions is estimated at a $3bb
            market with only one option at this time - surgery. The
            opportunity for this product is significant indeed.

    --  We continue to expand our scientific capabilities by adding a
        gifted gynecologic cancer researcher in Dr. Steven Waggoner to
        our Medical Advisory Board.

    --  The Company last week secured a major new round of
        institutional equity financing which allows us to rapidly
        deploy a number of important development projects.

    --  The prototype for the e2 Collector has been successfully
        developed and tested, making this product ready for
        manufacturing.

    --  The Collector will shortly be put into the final
        pre-manufacturing engineering phase - tooling. Early
        production runs will begin in 5-6 months.

    --  We expect to begin confirmation lab testing of the new
        bio-marker as an Endometrial Cancer Screen, prior to an FDA
        trial. This cancer screen can be offered to the market without
        the necessity of the AIPS system, which means sooner. At a
        later date, the AIPS can be brought along as a Phase II
        enhancement to the Screen test.

    --  Tests will begin this quarter on the CVX Cocktail with the new
        marker combination.

    --  AIPS development program is moving forward toward late summer
        completion with early testing expected by end of Q2. At that
        point, the process of customizing the AIPS to fit the CVX
        cocktail with the new bio-marker will begin.

"This is a very exciting time for this Company. In a short period of time and with limited resources, we have truly turned the Company around. Now with the expanded product opportunities and the financial resources, we expect to again increase the momentum and pace of development.

"As we look toward the coming year, it is fair to say that we could not be better positioned. With the major advertising dollars currently being spent to focus attention on the importance of the HPV screening test and the major ad dollars that soon will be spent by Merck in support of their new HPV vaccine, we expect these campaigns will bring lots and lots of investor attention and interest to companies in our sector. CytoCore's InPath System is so far advanced from the competition, offers such significant improvement to each phase of the Pap test with component products so close to the market, we believe we will begin to attract the deserved attention of the investment community at large.

I am personally very excited about our prospects for the next year and look forward to reporting our progress to you."

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, 2004 and its Quarterly Reports on Form 10-QSB for the quarters ended June 30, 2005 and September 30, 2005. Except as expressly required by law, CytoCore undertakes no obligation to publicly update or revise any forward-looking statements contained herein.