Cytori Forms Stem Cell Therapy Distribution Partnership in Spain, Italy and Portugal

Cytori Therapeutics (NASDAQ:CYTX) (FWB:XMPA) entered into an
agreement with MBA Grupo, a European healthcare distributor, who will
distribute the Celution(TM) System in Spain, Italy and Portugal
starting early 2008 for reconstructive surgery applications. MBA Grupo
will oversee product sales, education and training for breast
reconstruction following partial mastectomy initially, and for other
reconstructive applications in the future. Cytori's Celution(TM)
System is an innovative medial device that removes a patient's own
stem and regenerative cells from their fat tissue. The cells can then
be delivered to the same patient in about an hour.

"Because regenerative medicine represents a tremendous emerging
market opportunity, we aligned ourselves with Cytori to sell the
Celution(TM) System, which will be the first broad-based commercial
stem cell product in Europe," said Baudilio Zapico, chief executive
officer, MBA Grupo. "Cytori's business model, which is based on the
sale of a device and single use therapeutic sets for breast
reconstruction, addresses a major unmet medical need and therefore we
expect rapid market adoption."

Cytori and MBA Grupo plan to establish key centers in Spain, Italy
and Portugal to conduct a post-market clinical study for breast
reconstruction following lumpectomy. While the initial focus is breast
reconstruction, Cytori and MBA Grupo intend to expand the use of the
Celution(TM) System for other reconstructive and aesthetic
applications in the future.

"Completing this distribution partnership is a key milestone
toward building our commercialization infrastructure in Europe," said
Bruce Reuter, senior vice president of international sales, marketing
and distribution. "MBA Grupo is the ideal partner for Spain, Italy and
Portugal due to their extensive experience in bringing new medical
technologies successfully to the marketplace."

MBA Grupo employs 150 direct salespeople focused on bringing new
and innovative technology to physicians in Spain, Italy and Portugal.
With annual revenues of $90 million they are the leading independent
distributor in this region.

About Cytori Therapeutics

Cytori Therapeutics is developing and seeks to commercialize stem
and regenerative cell therapies for cardiovascular disease,
reconstructive surgery and many other serious chronic and life
threatening conditions. To provide these therapies, physicians remove
a small amount of a patient's fat, also known as adipose tissue, and
run it through Cytori's Celution(TM) System. This System quickly
separates and concentrates stem and regenerative cells from adipose
tissue so they may be quickly administered back to the patient about
an hour later. This system will dramatically improve the way in which
personalized cell-based therapies can be delivered to patients.
(www.cytoritx.com)

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, the need for
further financing, regulatory uncertainties, dependence on performance
of third parties, 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. We assume no responsibility to update or revise any
forward-looking statements to reflect events, trends or circumstances
after the date they are made.