York Resigns As Executive Vice President Of CytoTherapeutics' Ophthalmics Program

LINCOLN, R.I. -- (BW HealthWire) -- July 24, 1998 -- CytoTherapeutics, Inc. (NASDAQ: CTII) announced today that, due to personal reasons, Billie M. York, Ph.D., Executive Vice President Ophthalmics Program has resigned from the Company. Dr. York shall remain a consultant to the Company.

CytoTherapeutics is continuing its Ophthalmics Program and is developing cell-based products to treat eye diseases and conditions. Specifically, the Company is developing its encapsulated cell technology to deliver continuous, low doses of novel and potent compounds directly within the eye that cannot be effectively and safely delivered any other method. The Company's human neural stem cell technology may used to replace retinal cells damaged by diseases such as macular degeneration and retinitis pigmentosa.

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CytoTherapeutics, Inc. is a leader in the development of cell-based therapeutics. The Company's encapsulated-cell technology is designed to treat a number of serious diseases and disorders of the central nervous system (CNS), including chronic pain, by delivering therapeutic proteins directly to the CNS. 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. For additional information, visit the Company's Internet web site at http://www.cyto.com.

Statements in this press release other than statements of historical facts constitute forward looking comments regarding, among other things, product development plans, clinical trial strategies and timing, regulatory requirements and future business operations. The Company's actual results may vary materially from those forward looking statements due to risks and uncertainties to which the Company is subject, such as uncertainties regarding clinical trial outcomes, failure to achieve required product development, delays in obtaining, or failure to satisfy conditions imposed for, regulatory approval, the need to raise additional capital, risks of third-party intellectual property, adverse clinical developments, and other risks, which 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, Inc.
      John S. McBride, (401) 288-1000, ext. 2126
       OR
      Elizabeth A. Razee, (401) 288-1000, ext. 2132