Donald Kennedy Joins Board At CytoTherapeutics; Former FDA Commissioner and President Emeritus of Stanford University

LINCOLN, R.I. -- (BUSINESS WIRE) -- July 23, 1999 -- CytoTherapeutics, Inc. (Nasdaq:CTII) today announced the election of Donald Kennedy, Ph.D., to its Board of Directors. Since 1960, Dr. Kennedy has held a number of academic research, advisory and public policy positions related to health and the environment. Dr. Kennedy currently co-directs the Center for Environmental Science and Policy in the Institute for International Studies at Stanford University in Palo Alto, California.

"Dr. Kennedy's considerable expertise in the development of regulatory and public health policies -- combined with his extensive research experience in the field of neurobiology - should immediately impact ongoing development of our proprietary neural stem cell technology," stated Richard M. Rose, M.D., President and Chief Executive Officer.

"We are indeed fortunate to draw on Dr. Kennedy's experience to assist us in developing our programs for the Company's human stem cell technologies," added John J. Schwartz, Ph.D., Chairman of the Board.

"I am excited to have an opportunity to help advance this exciting technology toward human therapeutic reality," commented Dr. Kennedy. "Stem cell therapy, if successfully developed, could enable the replacement or repair of human tissues and organs. As such, it could prove to be the most significant advancement in medicine to date
-- potentially eliminating or reducing the human and monetary costs associated with a number of life-threatening conditions."

From 1965 to 1972, Dr. Kennedy served as Chairman of the Department of Biology at Stanford University. In 1973, he helped create and subsequently served as Chairman of an interdisciplinary Program in Human Biology. In 1977, Dr. Kennedy took a leave of absence from Stanford to serve as Commissioner of the United States Food and Drug Administration where he participated in various improvements in the new drug-approval process. Upon his return to Stanford, he was appointed President of Stanford, a position he held for 12 years.

Dr. Kennedy received his bachelor and doctorate degrees from Harvard University in Cambridge, Massachusetts. He is a member of the National Academy of Sciences and co-chairs a new Academy program on science and the law.

With the election of Dr. Kennedy, CytoTherapeutics' Board now includes seven members. Other CytoTherapeutics' Directors are:

-- John J. Schwartz, Ph.D., Chairman of the Board of CytoTherapeutics and President of Quantum Strategies Management Company;

-- Richard M. Rose, M.D., President and Chief Executive Officer of CytoTherapeutics, Inc.;

-- Moses B. Goddard, M.D., Vice President of CytoTherapeutics, Inc.;

-- Mark J. Levin, Chief Executive Officer, Millenium Pharmaceuticals, Inc.;

-- Richard J. Ramsden, a private investor; and

-- Irving L. Weissman, M.D., Professor of Cancer Biology and Professor, Department of Pathology and Developmental Biology at Stanford University.

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CytoTherapeutics, Inc. is a biotechnology company focused on the discovery, development and commercialization of stem cell-based therapies. 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, 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 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."

     
     CONTACT: CytoTherapeutics, Inc.                               
              Richard M. Rose, M.D.                                
              President and Chief Executive Officer                
              401/288-1000                                         
              or
              CytoTherapeutics, Inc.                  
              Elizabeth A. Razee                      
              Vice President, Corporate Communications
              401/288-1000