Schlieren (Zurich), Switzerland, January 6, 2015 -Cytos Biotechnology Ltd. (SIX:CYTN) ("Cytos") announced today that it executed an exclusive license agreement granting OnCore Biopharma, Inc. ("OnCore") access to Cytos' clinically validated virus like particle (VLP) platform for the use in the treatment and prevention of hepatitis B viral infections. Cytos also granted an option for the treatment of additional viral diseases other than influenza. The agreement will become effective with the achievement of certain closing conditions, including a successful debt restructuring of Cytos.

For the first product in each of six possible product categories in the field of Hepatitis B that may be developed under the agreement, Cytos may receive up to USD 67 million in development milestones, or a maximum of USD 402 million if one product in each product category is developed. In addition, Cytos is eligible to receive commercial milestone payments of up to USD 120 million upon achievement of certain sales levels, and up to double-digit royalties on net sales from any successfully developed product.

"We are excited about the potential for our VLP platform to improve the outcome for patients with hepatitis B and other viral infections and believe that OnCore is well positioned to advance treatment options for this important unmet medical need", commented Christian Itin, Chairman and CEO of Cytos, and added "OnCore's management team has extensive experience in the development of hepatitis therapies. The choice of Cytos' VLP platform as part of their Hepatitis B pipeline provides our shareholders with a potential upside from milestone and royalty payments."

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 Hepatitis B

Hepatitis B is a serious infection of the liver caused by the hepatitis B virus (HBV) and is considered a major global health problem. Hepatitis B infection can cause chronic liver disease, which increases a patient's risk of death from liver cirrhosis and liver cancer. Estimates from the Centers for Disease Control and Prevention (CDC) indicate that up to 350 million people globally may be chronically infected with hepatitis B and, according to the World Health Organization (WHO), more than 780,000 people die every year due to hepatitis B. Most currently-available therapies aim to suppress this viral infection but do not lead to a cure in the overwhelming majority of patients.

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.

About Cytos' VLP platform
Cytos proprietory, versatile and highly-defined VLP platform which can be used for the generation B- and T- cell vaccines and as immunmodulators is based on bacteriophage Q beta-derived virus-like particles (Qb VLPs). These QbVLPs act as immune-stimulatory carriers for disease-associated antigens and can be used for the delivery of immune modulators. The platform builds on the repetitive and highly ordered protein array formed by Qb VLPs and the immune stimulatory nucleic acids included inside the VLPs acting as toll-like receptor (TLR) - ligands. GMP grade Qb VLPs are produced efficiently at large scale in E.coli. Qb VLPs can either be used directly as immune stimulators, or combined with selected antigens chemically linked to the VLP surface as conjugate vaccine.

Cytos and its partners have tested a wide array of antigens ranging from chemical entities, to peptides, to large multimeric proteins. Vaccine candidates based on Cytos' Qb VLP platform have been tested in various preclinical and clinical studies and were found to be safe, generally well tolerated and highly immunogenic. The vaccine platform is modular, robust and scalable. Clinical programs include the partnered B-cell vaccine programs against Alzheimer's Disease with Novartis, against allergy with Pfizer and against influenza with A*Star. Moreover the QbVLPs filled with a TLR9 agonist were clinically tested for a T-cell vaccine candidate against Melanoma as well as an immune modulator in allergic diseases like rhinitis and allergic asthma.

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