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CYTOTHERAPEUTICS ANNOUNCES PRIVATE FINANCING TOTALING $18.75 MILLION

 PROVIDENCE, R.I., Sept. 13 /PRNewswire/ -- CytoTherapeutics, Inc. (NASDAQ: CTII) today announced that it has reached an agreement on a financing totaling $18.75 million in a private placement of newly issued shares of common stock. The financing was arranged by Robertson, Stephens & Company and Tucker Anthony Incorporated.
 The offering consists of 2.5 million shares at $7.50 per share, an 11 percent discount from a bid price of $8.50 at the time the deal was negotiated. With the new issue, CytoTherapeutics will have approximately 10.4 million shares of common shares outstanding. Subject to normal closing conditions, CytoTherapeutics will receive the proceeds when a registration statement covering resales by the purchasers becomes effective. At the closing of the financing, the company's cash and investments will exceed $33 million.
 "Originally, we anticipated selling approximately 1.5 million shares," stated Daniel E. Geffken, chief financial officer of CytoTherapeutics. "However, due to the enthusiasm we have seen surrounding the progress of the company's technology, we expanded the offering significantly. We are particularly pleased to have included a number of new institutional investors in this financing."
 Thomas G. Wiggans, president and chief operating officer of the company, added, "We view this deal as a fitting climax to the accomplishment of a number of scientific milestones this summer. In light of a continuing difficult financing environment, the investors' support for the company is a significant reflection of these achievements, including our entry into human clinical trials. These added financial resources will allow us to accelerate our programs for chronic pain, Parkinson's disease and other central nervous system programs."
 CytoTherapeutics is a leader in the development of implantable delivery systems for biologically active and gene therapy products for the treatment of central nervous system (CNS) diseases and other chronic disorders. The company's CNS products in development include its CereCRIB(TM) implant for the treatment of severe, chronic pain and its NeuroCRIB(TM) implant for the treatment of Parkinson's disease. The company is also developing applications of its CRIB(TM) technology for the potential treatment of Alzheimer's disease, amyotrophic lateral sclerosis and multiple sclerosis, as well as other neurodegenerative diseases.
 -0- 9/13/93
 /CONTACT: Daniel E. Geffken, chief financial officer, 401-272-3310 ext. 2126; or Elizabeth Razee, communications coordinator, 401-272-3310 ext. 2132, both of CytoTherapeutics/
 (CTII)


CO: CytoTherapeutics, Inc.; Robertson, Stephens & Co.; Tucker Anthony
 Inc. ST: Rhode Island IN: MTC SU: FIN


DJ-CM -- NE006 -- 1223 09/13/93 10:54 EDT
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Publication:PR Newswire
Date:Sep 13, 1993
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