DGAP-Adhoc

Cytos Biotechnology Ltd updates on a key transaction and plans going forward - Seite 2

- Each outstanding subordinated convertible bond of nominal CHF 2,500 is
mandatorily converted into 10'000 Cytos shares of nominal CHF 0.10.

- An incentive payment of CHF 25.00 per subordinated convertible bond is
paid in case the bond restructuring becomes valid and binding. The
incentive payment is subject to 35% withholding tax.

- Two thirds of all outstanding subordinated convertible bonds need to
support the bond restructuring.

- Maximum 77'490'000 shares to be issued for bond conversion. Such
issuance is subject to shareholder approval in an extraordinary
shareholders meeting to be held.

The conversion of the CHF 19'372'500 subordinated convertible bonds
maturing on February 20, 2015 into Cytos shares is essential for Cytos to
remain a going concern. In order to approve the conversion, a bondholders'
meeting is scheduled to take place on January 26, 2015 in Schlieren/Zurich,
Switzerland.

The notice to the bondholders as well as the detailed content of the
conversion of the outstanding subordinated convertible bonds can be
downloaded at www.cytos.com/bondrestructuring. The invitation to the
bondholders' meeting will be mailed within the next few days.

The terms for the conversion of the subordinated convertible bonds have
been carefully considered and represent, in the view of the Board of
Directors and the management, a fair and reasonable proposal which serves
to avoid liquidation and ensure that Cytos remains a going concern.

The Board of Directors and the management unanimously support approving the
conversion, which is in the best interest of bondholders, shareholders, and
other stakeholders, and will do their utmost to realize a solution that
enables Cytos to deliver shareholder value - for example by means of a
reverse merger in which Cytos would purchase another company with intact
operations and products.

In addition, Cytos announced today that it has executed an agreement
granting OnCore Biopharma, Inc. ("OnCore") an exclusive license to Cytos'
clinically validated virus like particle (VLP) platform to develop and
commercialize products for the treatment and prevention of hepatitis B
viral infections. Cytos also granted OnCore an option to extend the license
to additional viral diseases other than influenza.

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