CytoTherapeutics and Cognetix Collaborate on
 Development of New Class of CNS Compounds
 Agreement Covers Cell and Gene-based
 Delivery of Highly Specific, ..

 Source: PR Newswire

 PROVIDENCE, R.I. and SALT LAKE CITY, Feb. 20 /PRNewswire/ via
Individual Inc. --  CytoTherapeuties, Inc. (Nasdaq: CTII) and Cognetix,
Inc. today announced an agreement to  develop cell and gene-based
therapies to treat a broad range of human diseases. Under the  terms of
the agreement, CytoTherapeutics will take a significant equity position
in Cognetix  over the next year, and the companies will screen select
proprietary peptides isolated by  Cognetix that are specific to a range
of central nervous system (CNS) receptor targets for  clinical
development using CytoTherapeutics' proprietary cell-based delivery
technology.

 Cognetix is isolating proprietary conopeptides and similar compounds to
act on selected targets in the CNS. Under the terms of the agreement,
CytoTherapeutics will have access to Cognetix's proprietary conopeptides
and the Company's ongoing research in additional proprietary
conopeptides and similar compounds for genetic delivery.
CytoTherapeutics, in  return, will apply its proprietary technology
using encapsulated cells to deliver therapeutics to the CNS and the
periphery. CytoTherapeutics and Cognetix will work together exclusively
in the development of cell and gene products to deliver Cognetix's
proprietary portfolio of conopeptides as well as new compounds
discovered under the collaboration.

 In the collaboration, CytoTherapeutics and Cognetix will focus on
several CNS compounds with an initial emphasis on highly specific, high
affinity calcium, sodium and potassium channel blockers. These peptides
represent attractive therapeutic candidates for a broad range of
neurological disorders, such as epilepsy, Parkinson's disease, chronic
pain, stroke, and spinal ischemia.

 The parties expect to share development costs and profits, unless
otherwise agreed. The Companies will jointly decide which candidates to
screen and which products to develop.

 "Cognetix and CytoTherapeutics are working jointly because we believe
that CytoTherapeutics' cell-based delivery provides unique benefits for
delivery of Cognetix's peptides to the central nervous system," stated
Davis Temple, Ph.D., Chairman and Chief Executive Officer of Cognetix,
Inc.

 "This program will give CytoTherapeutics access to a novel class of
potentially highly potent candidate compounds, thereby allowing the
Company to expand our clinical development opportunities in areas where
our technology is uniquely useful," stated Seth A. Rudnick, M.D.,
Chairman and Chief Executive Officer of CytoTherapeutics. "The
combination  of our technologies will provide a way to deliver small
molecule-like therapeutics targeting  unique CNS pathologies and to move
them into the clinical pipeline. We are excited to move  forward with
the research and management team at Cognetix."

 Cognetix is a biopharmaceutical company formed to discover and develop
lead compounds from conopeptides to treat CNS, peripheral nervous system
and cardiovascular diseases. Conopeptides are derived from conus, a
predatory species of marine sea snails, and are extremely specific for
different receptor classes and their associated ion channels. The potent
specificity of the conopeptides has arisen from millions of years of
natural selection in the  snail's environment. The Company's conopeptide
technology is based on more than 20 years of research by its scientific
co-founder, Dr. Baldermo Olivera, and his colleagues at the University
of Utah.

 CytoTherapeutics, Inc. is a leader in the development of proprietary
products and technology designed to deliver therapeutic substances to
the central nervous system (CNS). The Company's CNS-focused technology
is designed to provide controlled, site-specific and safe delivery of a
variety of novel therapeutic substances across the blood-brain barrier,
potentially overcoming a fundamental obstacle in the effective treatment
of CNS diseases. The Company is currently developing products for the
treatment of chronic pain, ALS, and Parkinson's disease, with research
efforts also directed to several additional CNS disorders. For
additional information, visit the Company's Internet web site at
http://www.cyto.com. Certain statements in this press release include
forward looking comments regarding, among other things, availability of
funding, technical and business progress and clinical trial timetables.
The Company's actual results may vary materially from those forward
looking statements due to risks and uncertainties to which the Company
is subject, such as delays in product development and in obtaining
regulatory approvals, failure to meet milestones or other obligations
under collaborative agreements and other risks, which are described in
Exhibit 99 to the Company's Annual Report on Form 10-K entitled
"Cautionary Factors Relevant to Forward Looking Statements." SOURCE
CytoTherapeutics, Inc.

 /CONTACT: Seth A. Rudnick, M.D., Chairman and CEO of CytoTherapeutics,
401-272-3310, ext. 2113 or R. Tyler McCabe, Ph.D., Vice President, R&D,
of Cognetix, 801-581-0400, or Karen Bergman of Burns McClellan,
212-505-1919/ (CTII) CO: Cyto Therapeutics, Inc.; Cognetix, Inc. ST:
Rhode Island, Utah IN: MTC SU: JVN   CH-SB -- NETH009 -- 2880 02/20/97
09:10 EST http://www.prnewswire.com  [02-20-97 at 12:00 EST, PR
Newswire]