Cytori Therapeutics to Raise $10 Million in Registered Direct Offering.

SAN DIEGO -- Cytori Therapeutics, Inc. (NASDAQ: CYTX) entered into definitive agreements to raise $10 million, before placement agent fees and offering expenses. At closing, Cytori will issue and sell to select investors 4,771,174 units, with each unit consisting of one share of the Company's common stock and 1.4 warrants, at a purchase price of $2.10 per unit. The warrants, which will represent the right to acquire up to an additional 6,679,644 shares of common stock, will be exercisable beginning six months after the closing of the transaction at an exercise price of $2.59 per share, which was the Company's consolidated closing bid price per share on March 9, 2009, and will expire five years after the date the warrants are first exercisable.

The funds will be used for sales and marketing activities related to the commercialization of the Celution[R] System and consumables as well as other related and complementary products, for ongoing clinical studies of the Celution System for breast reconstruction and cardiovascular disease, for ongoing research and development to support the Company's products and its pipeline development, and for general working capital.

Cytori is offering the securities in this transaction pursuant to an effective shelf registration statement. Piper Jaffray & Co. served as the sole placement agent. The transaction is expected to close on or about March 13, 2009, subject to the satisfaction of customary closing conditions.

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 Therapeutics, Inc. manufactures, develops, and internationally commercializes innovative medical technologies, which allow physicians to practice regenerative medicine. Commercial activities are currently focused on marketing the Celution[R] cell processing system and related family of products across three areas. The first is cosmetic and reconstructive surgery in Europe and Asia-Pacific. The second is to fulfill the demand among physicians in Europe and Asia Pacific for access to clinical grade stem and regenerative cells. The third is to market the Celution[R]-based StemSource[R] Cell Bank worldwide to hospitals and tissue banks so they can in turn offer patients the opportunity to cryopreserve their own adipose-derived stem and regenerative cells. The Company's development pipeline includes applications for cardiovascular disease, renal failure, orthopedic damage, gastrointestinal disorders, and pelvic health conditions, among others. www.cytoritx.com

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements regarding events, trends and business prospects, which may affect Cytori's future operating results and financial position. Such statements, including, but not limited to, those regarding the anticipated closing of the offering and the anticipated use of the net proceeds from the offering, are subject to risks and uncertainties that could cause Cytori's actual results and financial position to differ materially. Some of these risks and uncertainties include Cytori's history of operating losses, the need for further financing, regulatory uncertainties regarding the collection and results of, clinical data, dependence on third party performance, and other risks and uncertainties described under "Risk Factors" in Cytori's Securities and Exchange Commission Filings, including its annual report on Form 10-K for the year ended December 31, 2008. 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.