CytRx’s Board of Directors Sends Important Letter to Stockholders to Expose Dissident Investor and his Misguided Campaign - Seite 2

MR. HAMMANN HAS A LONG HISTORY OF FRIVOLOUS LEGAL ACTIONS, CONCERNING EMPLOYMENT DISPUTES AND POOR PERSONAL AND FINANCIAL JUDGEMENT

The Board is unanimous in its view that character, integrity and professionalism are core qualifications for serving as a CytRx director. Unfortunately, the dissident has failed to demonstrate any of these qualities when dealing with CytRx’s representatives and seeking to communicate with stockholders. He has chosen to deliberately omit the following items from the four iterations of the preliminary proxy statement that he has filed with the Securities and Exchange Commission (“SEC”):

• A Lengthy List of Frivolous, Unsuccessful Lawsuits – He has unsuccessfully sued nearly 20 banks, former lessors, real estate companies and other miscellaneous parties. After losing at the lower court level, he has taken numerous cases to the Minnesota Appellate Court, the United States District Court and the United States Supreme Court. A Minnesota court ultimately labeled him a "frivolous litigant." We believe Mr. Hammann’s litigious tendencies and his willingness to wage costly, unsupported legal actions are indicative of his extremely poor judgement.

• A Contentious Eviction – He unsuccessfully sued Wells Fargo Bank, N.A. in connection with his eviction from a foreclosed property. He asserted claims for ouster, unlawful exclusion or removal, and breach of landlord covenants. Ultimately, the Hennepin County District Court dismissed the lockout action with prejudice. We believe Mr. Hammann’s involvement in this dispute is further evidence of his poor judgement and raises questions regarding his respect for his obligations.

• Concerning Disputes with Former Employers – He has sued two former employers: Schwan’s Sales Enterprises Inc. (“Schwan”) and Diversified Consulting Associates, LLC (“Diversified Consulting”). Litigation against Schwan resulted in Mr. Hammann being ordered to pay $12,000 for attorney’s fees and a sanction of $1,000 for his repeated attempts to litigate the matter. Litigation against Diversified Consulting was just filed in July 2020. We question how stockholders can have faith in Mr. Hammann’s ability to serve as a collegial, collaborative director when he frequently has disputes with his employers.

• No Experience Working at a Biopharmaceutical Company – He contends he has healthcare industry experience based on his accounting career at now-defunct Arthur Andersen LLP, which was complicit in the Enron Corporation fraud, and his subsequent tenure as an independent consultant. A records search conducted by CytRx indicates Mr. Hammann has no experience working at a biopharmaceutical entity or serving on a public company’s board of directors. He is currently the self-reported owner of Healthcare Performance Innovations, which has an unknown business registration and history. We question how stockholders can have faith in Mr. Hammann’s ability to add any value to the Board when he does not understand our business, exhibits poor judgement and possesses no relevant working experience.

In light of these facts, we urge stockholders not to be misled by his value-destructive and misguided crusade to destabilize the Board and target Steven A. Kriegsman. We believe adding an uninformed, irrational individual as a director will only weaken CytRx and undermine our path to enhanced value for all stockholders.