Cytos Biotechnology Ltd Reports the Financial Results of the First Half Year 2015

Schlieren (Zurich), Switzerland, July 29, 2015 - Cytos Biotechnology Ltd. (SIX:CYTN) ("Cytos" or the "Company") announced today its financial results for the first half year ended June 30, 2015.

Financial Results

Six-month period from January 1 to June 30, 2015

Funds available for financing the Company's operations amount to CHF 2.5 million as per June 30, 2015, and include cash and cash equivalents, financial assets and trade and other receivables. This is CHF 14.6 million lower than on December 31, 2014 (CHF 17.1 million) and is primarily driven by the repayment of CHF 14.2 million of the non-subordinated part of the convertible loans on February 10, 2015.

Revenue comprising deferred income from license fees paid by Novartis of CHF 0.50 million has been recognized in the first six month of 2015, unchanged from the same period in 2014. Novartis has bought out the collaboration and license contract for CAD106 for a lump-sum payment of CHF 4 million (plus VAT) and Cytos has assigned that payment to the loan note holders as part of the final settlement of all outstanding loan notes. Novartis will not make any further payments under the collaboration and license agreement in the future.

Net operating costs during the first six months of 2015 amounted to CHF 2.29 million, compared to CHF 16.46 million in the same period of the previous year. Compared to the first half-year 2014, research and development costs decreased by CHF 13.45 million to CHF 0.73 million in the first half-year of 2015 due to decreased activities after the discontinuation of the Phase 2b clinical study in asthma in first half-year 2014. General and administrative costs and sales and marketing expenditures combined amounted to CHF 2.83 million and do contain costs associated with the restructuring of the debt. Other income in the first half-year of 2015 was CHF 1.27 million and is comprised of proceeds from sub-lease agreements.

In the first six month of 2015, financial income was CHF 11.23 million which is significantly higher compared with the corresponding period in the prior year (TCHF 88). The two main elements of this difference are the effects of (i) the mandatory conversion of all convertible bonds into equity (CHF 9.61 million) as well as (ii) a partial waiver of claims by the loan note holders (CHF 1.62 million). Both effects are one-time effects and will no longer occur in the future as all debt has been eliminated.

Net income was CHF 7.77 million in the first half-year of 2015 (compared to a net loss of CHF 23.44 million in the same period in 2014). This significant decrease is mostly based on one-time effects related to the elimination of debt as described above, as well as the revenue from the amendment of the collaboration and license agreement for CAD106 by Novartis. As already mentioned, all three effects are one-time effects and will not occur again. Further, the on-going operating costs have been significantly reduced due to decreased operating activities.

Financial summary (IFRS, consolidated)

Events after balance sheet date

The closing took place of the license agreement with Tekmira under which certain payments are to be made. The closing of the amendment of the collaboration and license agreement (buy-out) by Novartis triggered a payment of CHF 4 million (plus VAT). In conjunction with the settlement with loan note holders, receivables in the amount of CHF 4,359,962.50 were pre-assigned to them and, following the receipt of the payment done by Novartis, the above amount was paid to the loan note holders.

With effect as of July 1, 2015, a total of 5.4 million options were granted with a duration of five years, a regular vesting of four years, a full vesting upon change of control and a strike price of CHF 0.60 (the closing price of the Cytos share on July 1, 2015 was CHF 0.55).

The detailed First Half Year Financial Report 2015 can be downloaded at:

http://www.cytos.com/uploads/2015/Cytos_HY_1_2015_EN.pdf

For further information, please contact:

Cytos Biotechnology Ltd
Harry Welten, MBA
Chief Financial Officer
Tel: +41 44 733 46 46
harry.welten@cytos.com

About Cytos Biotechnology Ltd

Cytos is a public biopharmaceutical company located in Schlieren (Zurich), Switzerland. The Company is listed according to the Main Standard on the SIX Swiss Exchange Ltd under the symbol CYTN.

Forward Looking Statements
This media release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. You are urged to consider statements that include the words "will" or "expect" or the negative of those words or other similar words to be uncertain and forward-looking. Factors that may cause actual results to differ materially from any future results expressed or implied by any forward-looking statements include scientific, business, economic and financial factors, Against the background of these uncertainties, readers should not rely on forward-looking statements. The Company assumes no responsibility for updating forward-looking statements or adapting them to future events or developments.

www.cytos.com