CytoTherapeutics Announces Management Changes

SUNNYVALE, Calif. -- (BW HealthWire) -- Jan. 31, 2000 -- CytoTherapeutics, Inc. (Nasdaq:CTII), the stem cell company, today announced that effective February 1, 2000, life sciences veteran George W. Dunbar, Jr., will become Acting President and CEO of the Company, succeeding Richard M. Rose, M.D., who has been President and CEO since 1997.

"When the Company decided to relocate from Rhode Island to Sunnyvale, California, in order to concentrate on stem cell programs as our core mission, Rich agreed to stay through the transition. We are grateful for his loyalty and commitment to the Company and its technology since he took office," said John Schwartz, Chairman of the Board of Directors.

Mr. Dunbar has been Acting President of StemCells, Inc., the wholly owned subsidiary of CytoTherapeutics, since November, 1999, and will continue in that role. Dr. Schwartz added, "StemCells, Inc., is now the focus of CytoTherapeutics and will continue to benefit greatly from the management skills and industry experience that Mr. Dunbar has been providing during his service as Acting President for the past several months."

Mr. Dunbar has 25 years of biomedical experience including President and CEO of Metra Biosystems, which merged with Quidel Corporation (Nasdaq:QDEL) last year. Prior to Metra, Mr. Dunbar was a vice president of The Ares-Serono Group, a Swiss healthcare company, and vice president of Amersham International's life science business in the United States, and General Manager, Eastern Region including the Pacific Rim markets.

Mr. Dunbar serves as a Board member for Competitive Technologies, Quidel, LJL Biosystems, Sonus Pharmaceuticals, and The Valley Medical Center Foundation. He is a graduate of Auburn University with degrees in Electrical Engineering and an MBA, and sits on the School of Business MBA Advisory Board.

In a further management change, Iris Brest has joined the Company as General Counsel. Prior to CytoTherapeutics, she served as Vice President and General Counsel to SyStemix, Inc., and was Associate General Counsel at Stanford University. She holds an A.B. degree from Swarthmore College and earned her LL.B. from Harvard Law School.

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CytoTherapeutics is a biotechnology company focused on the discovery, development and commercialization of stem cell-based therapies to treat diseases of the central nervous system, liver, and pancreas. The Company's stem cell programs seek to repair or repopulate neural or other tissue that has been damaged or lost as a result of disease or injury.

Statements in this press release other than statements of historical facts constitute forward-looking statements regarding, among other things the Company's future business operations. The Company's actual results may vary materially from those contemplated in the forward looking statements due to risks and uncertainties to which the Company is subject, including uncertainties regarding future funding for the Company and others that are described in Exhibit 99 to the Company's Annual Report on form 10-K entitled "Cautionary Factors Relevant to Forward Looking Statements."


     CONTACT: CytoTherapeutics
              George Dunbar, 408/731-8670 (Acting President & CEO)
                 or
              IR PR Strategies, LLC (Media for StemCells, Inc.)
              Laura Hansen, Ph.D., 858/860-0266