CytoSorbents Reports First Quarter 2019 Financial Results and Provides Second Quarter 2019 Guidance

CytoSorbents Reports First Quarter 2019

Financial Results and Provides Second Quarter 2019 Guidance

N.J., May 7, 2019 - CytoSorbents Corporation (NASDAQ: CTSO), a critical care immunotherapy

leader using its CytoSorb blood purification technology to treat deadly inflammation in

critically-ill and cardiac surgery patients around the world, reports financial and operational results for the quarter ending

First Quarter 2019 Financial Results:

First Quarter 2019 Operational Highlights:

Dr. Phillip Chan, Chief Executive Officer

of CytoSorbents Corporation stated, "Q2 2019 product sales are expected to return to our historical growth trajectory, and

are anticipated to be the highest quarterly product sales reported in our history. In addition, we continue to forecast strong

revenue growth for all of 2019, despite a slow start in Q1, based on numerous growth opportunities we see."

Dr. Chan continued, "Specifically,

we anticipate CytoSorb direct sales will continue strengthening and accelerate into the second half of this year, driven by organic

growth, our investments in a larger direct sales team - particularly in Germany, reimbursement, contributions from new direct territories

including Poland, Netherlands, and Scandinavia, new clinical data and applications, and other catalysts."

"In addition, we believe the factors

that impacted Q1 indirect sales are short-term and specific to the three distributors as described above. For example, Fresenius

(FMC) is selling through its European inventory of CytoSorb in France and Finland, while it begins sales in the Czech Republic

and pursues registration of CytoSorb in both Mexico and South Korea. It is expected that FMC will order new CytoSorb devices for

these countries once registration is achieved. We are encouraged that each of these customers has increased their commitment to

selling CytoSorb, including aggressively pursuing new indications, increasing resource allocation, and working closely with our

company to drive success. Importantly, we see end-user demand increasing in their territories, based on the excellent foundation

they have established. Over the next several quarters, we expect a resumption of ordering from all three groups. Of special note,

we do not require these orders to achieve our guidance for Q2 2019." Dr. Chan concluded, "Lastly, we reiterate our

guidance on expanding our blended product gross margins to 80% on a quarterly basis this year."

"Please join us on our earnings conference call today,

details for which are below."

Conference Call Details:

Date: Tuesday, May 7, 2019

Time: 4:45 PM Eastern Time

Participant Dial-In: 877-451-6152

Conference ID: 13690052

Live Presentation Webcast: http://public.viavid.com/index.php?id=134206

It is recommended that participants dial

in approximately 10 minutes prior to the start of the call. There will also be a simultaneous live webcast of the conference call

that can be accessed through the following audio feed link: http://public.viavid.com/index.php?id=134206

An archived recording of the conference

call will be available under the Investor Relations section of the Company's website at http://cytosorbents.com/investor-relations/financial-results/.

Results of Operations

Comparison for the three months ended

March 31, 2019 and 2018:

Revenue from product sales was approximately

$4,577,000 in the three months ended March 31, 2019, as compared to approximately $4,433,000 in the three months ended March 31,

2018 an increase of approximately $144,000, or 3%. This increase was driven by an increase in direct sales of approximately $624,000

resulting from sales to both new customers and repeat orders from existing customers, offset by a decrease in distributor sales

of approximately $480,000. In addition, first quarter 2019 sales were negatively impacted by $363,000 as a result of the decrease

in the average exchange rate of the Euro. For the three months ended March 31, 2019, the average exchange rate of the Euro to the

U.S. dollar was $1.14 as compared to an average exchange rate of $1.23 for the three months ended March 31, 2018.

Grant income was approximately $615,000

for the three months ended March 31, 2019 as compared to approximately $491,000 for the three months ended March 31, 2018, an increase

of approximately $124,000 or 25%. This increase was a result of timing of certain grant revenue and income recognized from a new

Total revenues were approximately $5,192,000

for the three months ended March 31, 2019, as compared to total revenues of approximately $4,925,000 for the three months ended

March 31, 2018, an increase of approximately $267,000, or 5%.

For the three months ended March 31, 2019

and 2018, cost of revenue was approximately $1,739,000 and $1,568,000, respectively, an increase of approximately $171,000. Product

cost of revenues increased approximately $52,000 during the three months ended March 31, 2019 as compared to the three months ended

March 31, 2018 due to increased sales. Product gross margins were approximately 74% for each of the three months ended March 31,

Research and Development Expenses:

For the three months ended March 31, 2019,

research and development expenses were approximately $2,419,000 as compared to research and development expenses of approximately

$1,725,000 for the three months ended March 31, 2018. The increase of approximately $694,000 was due to an increase in clinical

trial costs of approximately $888,000, which is primarily related to our REFRESH 2-AKI trial and an increase in non-clinical research

and development salary related costs of approximately $9,000. These increases were offset by an increase in direct labor and other

costs being deployed toward grant-funded activities of approximately $118,000, which had the effect of decreasing the amount of

our non-reimbursable research and development costs, a decrease in new product development costs of approximately $67,000 and a

decrease of other non-clinical research and development costs of approximately $18,000.

Legal, Financial and Other Consulting

Legal, financial and other consulting expenses

were approximately $562,000 for the three months ended March 31, 2019, as compared to approximately $416,000 for the three months

ended March 31, 2018. The increase of approximately $146,000 was due to an increase in legal fees of approximately $167,000 related

to patent matters and certain corporate initiatives and an increase in consulting fees of approximately $18,000. These increases

were offset by a decrease in employment agency fees of approximately $36,000 and a decrease in accounting fees of approximately

Selling, General and Administrative

Selling, general and administrative expenses

were approximately $4,758,000 for the three months ended March 31, 2019, as compared to approximately $4,317,000 for the three

months ending March 31, 2018. The increase of $441,000 was due to an increase in salaries, commissions and related costs of approximately

$424,000, an increase in travel and entertainment and other costs of approximately $142,000, additional sales and marketing costs,

which include advertising and conferences of approximately $88,000, an increase in royalty expenses of approximately $7,000 due

to the increase in product sales, an increase in rent expense of approximately $11,000 related to the expansion of manufacturing

and office facilities and an increase in other general and administrative cost increases of approximately $21,000. These increases

were offset by a decrease in non-cash stock compensation of approximately $252,000.

Interest Expense, net:

For the three months ended March 31, 2019,

interest expense was approximately $205,000, as compared to interest expense of approximately $239,000 for the three months ended

March 31, 2018. This decrease in interest expense of approximately $34,000 is due to an increase in interest earned on our cash

balances during the three months ended March 31, 2019.

Gain (Loss) on Foreign Currency Transactions:

For the three months ended March 31, 2019,

the loss on foreign currency transactions was approximately $(393,000) as compared to a gain of approximately $358,000 for the

three months ended March 31, 2018. The 2019 loss is directly related to the decrease in the exchange rate of the Euro to the U.S.

dollar at March 31, 2019 as compared to December 31, 2018. The exchange rate of the Euro to the U.S. dollar was $1.12 per Euro

at March 31, 2019, as compared to $1.15 per Euro at December 31, 2018. The 2018 gain is directly related to the increase in the

exchange rate of the Euro at March 31, 2018 as compared to December 31, 2017. The exchange rate of the Euro to the U.S. dollar

was $1.23 per Euro at March 31, 2017 as compared to $1.07 per Euro at December 31, 2017.

History of Operating Losses:

We have experienced substantial operating

losses since inception. As of March 31, 2019, we had an accumulated deficit of approximately $174,408,000, which included losses

of approximately $4,884,000 and $2,982,000 for the three-month periods ended March 31, 2019 and 2018, respectively. Historically,

losses have resulted principally from costs incurred in the research and development of our polymer technology, clinical studies,