Peter K. Simon Joins Board At CytoTherapeutics

Retired Head of Roche's Pharma Operations Elected CTII Director

PROVIDENCE, RI, May 21, 1996 -- CytoTherapeutics, Inc. (Nasdaq: CTII) today announced the election of Peter K. Simon to its Board of Directors. From 1985 to 1995, Mr. Simon held a series of senior executive positions at Roche Holding AG, most recently as Head, Pharmaceutical Operations. At Roche Holding, the holding company for Hoffman La Roche of Basel Switzerland, Mr. Simon led the creation of Roche Bioscience, a new unit formed following Roche's acquisition of Syntex. In addition, he was responsible for supporting the launch of Genentech products in Europe following Roche's acquisition of a majority ownership position in Genentech. Mr. Simon currently serves as an advisor to several major pharmaceutical companies.

"Peter's strategic and operational expertise should have immediate impact on CytoTherapeutics as we select and implement our next corporate partnerships," said Seth A. Rudnick, M.D., Chairman of the Board and Chief Executive Officer. "In addition, his global manufacturing and marketing experience will help us implement commercially-driven strategies for product development."

A native of Switzerland, Mr. Simon has also served as President of INTERPHARMA, the Swiss Association of research-based pharmaceutical companies. Prior to joining Roche, he served as a regional Vice President and as the Marketing Director for Europe, Africa and the Middle East at Schering-Plough.

With the election of Mr. Simon, CytoTherapeutics' Board includes seven members. In addition to Mr. Simon and Dr. Rudnick, the members of CytoTherapeutics' Board of Directors are Patrick Aebischer, M.D., Ph.D., Director of the Gene Therapy Center at the CHUV, Switzerland; Edwin C. Cadman, M.D., Chief of Staff, Yale-New Haven Hospital; Donald R. Conklin, President, Schering-Plough Health Care Products; Mark J. Levin, Chief Executive Officer, Millenium Pharmaceuticals, Inc.; and Richard J. Ramsden, a private investor.

"Peter's addition enhances the balance CytoTherapeutics' Board has aimed for on several dimensions: both medical and business expertise, both large pharmaceutical company and biotechnology company experience, as well as both U.S. and European perspectives," added Dr. Rudnick.

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CytoTherapeutics, Inc. is a leader in the development of proprietary products and technology designed to deliver therapeutic substances to the central nervous system (CNS). The Company's CNS-focused technology is designed to provide controlled, site-specific and safe delivery of a variety of novel therapeutic substances across the blood-brain barrier, potentially overcoming a fundamental obstacle in the effective treatment of CNS diseases. The Company is currently developing products for the treatment of chronic pain, ALS and Parkinson's disease, with additional research efforts directed to several other CNS disorders. For additional information, visit the Company's Internet web site at http://www.cyto.com.

Certain statements in this press release include forward looking comments regarding, among other things, product development programs and clinical trial strategies. CytoTherapeutics' actual results may vary materially from those forward looking statements due to risks and uncertainties to which the Company is subject and which are described in Exhibit 99 to the Company's Annual Report on Form 10-K entitled "Cautionary Factors Relevant to Forward Looking Statements."