First Three Patients Treated in Adipose Stem and Regenerative Cell Clinical Safety and Feasibility Study for Breast Reconstruction; Represents First Clinical Use of Cytori's Regenerative Cell Processing System.

SAN DIEGO -- Cytori Therapeutics, Inc. (NASDAQ:CYTX)(FWB:XMPA) announced today the enrollment and treatment of the first three patients in a study using adult adipose (fat) derived stem and regenerative cells for breast reconstruction cancer therapy. This investigator-initiated study is being conducted by Keizo Sugimachi, M.D., President, Kyushu Central Hospital in Fukuoka Japan, using Cytori's regenerative cell processing system.

"We believe adipose stem and regenerative cells can have an important impact on the overall treatment of breast cancer patients," said Dr. Sugimachi. "If we can successfully use these cells, which are relatively easy to obtain, in conjunction with the patient's own fat tissue to reconstruct their breast after partial mastectomy, it will be a significant step forward for this growing patient population."

"This marks the first clinical experience for our system, which rapidly extracts and concentrates stem and regenerative cells from adipose tissue for use in the same surgical procedure," said Marc H. Hedrick, M.D., President for Cytori Therapeutics. "The scientific foundation underlying this study is that adipose-derived stem and regenerative cells, when added to the patient's own fat tissue, work by several mechanisms to maintain the volume of the reconstructed tissue."

More than one million women worldwide are diagnosed with breast cancer annually. Fortunately, early detection has served to increase the number of women eligible for partial mastectomy. This approach, though effective in the treatment of breast cancer, can often result in significant skin damage and tissue loss.

The investigation is a safety and feasibility study in breast cancer patients who have undergone a partial mastectomy. The study is expected to enroll up to 20 patients. In addition to safety, the study will evaluate volume retention as well as other outcomes of reconstructive surgery. Preliminary results are expected to be available in the first half of 2007.

About Cytori Therapeutics

Cytori Therapeutics, Inc. (NASDAQ:CYTX)(FWB:XMPA) is discovering and developing proprietary cell-based therapeutics utilizing adult stem and regenerative cells derived from adipose tissue, also known as fat. The Company's investigational therapies target cardiovascular disease, spine and orthopedic conditions, gastrointestinal disorders and new approaches for aesthetic and reconstructive surgery. To facilitate processing and delivery of adipose stem and regenerative cells, Cytori has developed its proprietary regenerative cell processing system to isolate and concentrate a patient's own stem and regenerative cells in about an hour. This system will dramatically improve the speed in which personalized cell-based therapies can be delivered to patients.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements regarding events, trends and prospects of our business which may 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 and expected continuing losses, the need for further financing, our ability to develop and commercialize regenerative cell-based therapies, our dependence on third parties, our ability to obtain, defend and enforce our intellectual property, and other risks and uncertainties described (under the heading "Risk Factors") in Cytori Therapeutics' Form 10-K annual report for the year ended December 31, 2005 and subsequent SEC filings, which will be available through our web site. We assume no responsibility to update or revise any forward-looking statements to reflect events, trends or circumstances after the date they are made.