Novartis AG Ditches $500 Million Cytos Biotechnology AG Pact

SCHLIEREN, Switzerland, January 23, 2013 — /PRNewswire/ -- Cytos Biotechnology Ltd (SIX:CYTN) today announced that Novartis will discontinue the NIC002 project, which is a therapeutic vaccine candidate for the treatment of nicotine addiction. Already communicated in October 2009 were results from a Phase 2 study with NIC002 conducted by Novartis that showed formation of nicotine-specific antibodies in patients but did not meet its primary endpoint of increased smoking cessation. As a result of the discontinuation, Novartis will terminate the licence granted in 2007 and will return to Cytos the licensed rights pursuant to the provisions of the licence agreement.

A second collaboration with Novartis on CAD106 in development for the treatment of patients with Alzheimer's Disease is not affected by this decision.

The termination of the NIC002 project has no impact on Cytos' financial and program guidance.

About Cytos Biotechnology Ltd

Cytos is a public biopharmaceutical company focused on the development of targeted immuno-therapies. The Company's lead product candidate CYT003 is a first-in-class biologic in Phase 2 clinical development as a potential new treatment for allergic asthma.

CYT003 acts via a novel, allergen-independent mechanism of action to selectively suppress the body's immune response to allergens, a predominant risk factor for asthma. In a successfully completed Phase 2a study, CYT003 was shown to maintain asthma control and lung function and asthma control in patients with persistent allergic asthma, even as standard inhaled corticosteroid treatment was withdrawn. CYT003 has been shown to be safe in over 450 patients to date.

Cytos was founded in 1995 as a spinoff from the Swiss Federal Institute of Technology (ETH) in Zurich. It is located in Schlieren (Zurich), Switzerland. The Company is listed according to the Main Standard on the SIX Swiss Exchange Ltd under the symbol CYTN.

http://www.cytos.com

This foregoing press release may contain forward-looking statements that include words or phrases such as "are intended for", "are designed to", or other similar expressions. These forward-looking statements are subject to a variety of significant uncertainties, including scientific, business, economic and financial factors, and therefore actual results may differ significantly from those presented. There can be no assurance that any further therapeutic entities will enter clinical trials, that clinical trial results will be predictive for future results, that therapeutic entities will be the subject of filings for regulatory approval, that any drug candidates will receive marketing approval from the U.S. Food and Drug Administration or equivalent regulatory authorities, or that drugs will be marketed successfully. Against the background of these uncertainties readers should not rely on forward-looking statements. The Company assumes no responsibility to update forward-looking statements or adapt them to future events or developments.

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