CytoSorbents Reports Second Quarter 2023 Financial and Operational Results Q2 2023 Total Revenue was $9.4 million, an 11% increase from $8.5 million in Q2 2022. Product sales rose 10% to $8.1 million vs $7.3 million in Q

CytoSorbents Reports Second Quarter 2023 Financial

and Operational Results

Q2 2023 Total Revenue was $9.4 million, an

11% increase from $8.5 million in Q2 2022. Product sales rose 10% to $8.1 million vs $7.3 million in Q2 2022. Product gross margins grew

700 basis points to 74%

PRINCETON, N.J., August

1, 2023 - CytoSorbents Corporation (NASDAQ: CTSO), a leader in the treatment of life-threatening

conditions in the intensive care unit and cardiac surgery using blood purification via its proprietary polymer adsorption technology,

today reported unaudited financial and operating results for the quarter ended June 30, 2023.

Second Quarter 2023 Financial Results

Recent Operating Highlights:

Dr. Phillip Chan, Chief Executive Officer of CytoSorbents

stated, "We are pleased to report another successful quarter of executing on our three key business objectives for 2023. Most importantly,

we expect to complete the pivotal STAR-T randomized, controlled trial imminently, following the 30-day follow-up of the last patient,

which we believe puts us on target for topline data before the end of the year.

We continue to march towards our goal of opening

the U.S. and Canadian markets with DrugSorb-ATR through the STAR-T (Safe and Timely Antithromobotic Removal

of Ticagrelor) and pending STAR-D programs. We thank our U.S. and Canadian STAR-T clinical trial investigators and centers, study

Principal Investigators, contract research organizations, and the clinical team at CytoSorbents, for an outstanding performance in the

study and for completing enrollment well ahead of schedule. We are also pleased the independent DSMB, following two scheduled reviews

of unblinded safety data on the first 80 patients, recommended completion of the study without modifications in June.

We have been working with centers in parallel

during the STAR-T study to ensure timely entry and monitoring of data, and despite enrolling the final 60 patients in the last 2.5 months

of the study with a lot of work ongoing, we expect to formally complete the study shortly and drive data cleaning and database lock in

the next several months. This will be followed by statistical analysis of the data, which we believe will enable us to achieve our goal

of announcing topline data before year-end. Meanwhile, our regulatory personnel have been coordinating the resources of the company to

assemble the regulatory dossier needed to submit for marketing approval to U.S. FDA and Health Canada, which we plan to do as soon as

possible assuming positive clinical study data. We plan to follow this with a formal presention of the data at a major U.S. cardiovascular

conference. With improved visibility on future approval, we expect to execute our pre-commercialization strategy and begin building our

sales and marketing infrastructure next year.

DrugSorb-ATR targets a large and growing market

opportunity that exists today and we expect it to further accelerate as low-cost generic versions of ticagrelor become available starting

in 2024. For example, the need to remove Brilinta (ticagrelor, AstraZeneca) in patients with acute coronary syndrome who have received

dual anti-platelet therapy (aspirin and a P2Y12 platelet inhibitor), but now require coronary artery bypass graft (CABG) surgery, is highlighted

by the rapid speed of patient enrollment in the U.S. and Canadian STAR-T trial. Today, physicians have the choice of using different P2Y12

anti-platelet drugs, including Brilinta , Plavix (clopidogrel, BMS/Sanofi), and Effient (prasugrel, Eli Lilly, Daiichi Sankyo,

UBE). Although Brilinta has superior antithrombotic efficacy to Plavix, Plavix is still widely used because it is generic and less expensive.

However, since Brilinta is expected to become generic ticagrelor in 2024, we believe it will take market share from both Plavix and Effient

as the price of ticagrelor drops. In addition, if DrugSorb-ATR is approved to remove Brilinta, Brilinta will become the only P2Y12 platelet

inhibitor with a solution available to allow timely surgery in patients on the drug - a powerful marketing message to prescribing

cardiologists and emergency room physicians who know that 5-10% of patients with acute coronary syndrome treated with a P2Y12 inhibitor

will not be candidates for stent placement and will require surgery and be at high risk of potentially fatal perioperative bleeding.

The preference for Brilinta (ticagrelor) by U.S.

cardiologists has been highlighted recently in the prestigious JAMA Network Open publication, entitled, "Assessing the Clinical

Treatment Dynamics of Antiplatelet Therapy Following Acute Coronary Syndrome and Percutaneous Coronary Intervention in the US" where

in a cohort study of more than 62,000 patients from 2010-2019 demonstrated that "ticagrelor has emerged as the most commonly prescribed

P2Y12 inhibitor" following acute coronary syndrome and percutaneous coronary intervention. The rise of ticagrelor usage in this

setting can be easily seen in Figure 1, where in 2019, ticagrelor was the drug of choice in 60.4% of cases, while clopidogrel (Plavix )

dropped to 29.6%, and prasugrel (Effient ) dropped to 10.0% of cases. We believe this trend bodes well for DrugSorb-ATR and supports

our contention that the U.S. and Canadian ticagrelor market will expand over time.

With STAR-T enrollment complete, our clinical

team is now focused on the activities leading up to the analysis of the results, and if positive, preparation of the documentation needed

for our planned U.S. and Health Canada regulatory submissions for DrugSorb-ATR. When appropriate, we plan to continue our STAR (Safe and

Timely Antithrombotic Removal) program with the resumption of the STAR-D trial, that will evaluate the use of DrugSorb-ATR to remove the

direct oral anticoagulant (DOAC) Factor Xa inhibitors, Eliquis and Xarelto (among the highest revenue generating pharmaceuticals in the

world), and to reduce bleeding risk in cardiothoracic surgery patients on these agents. We plan to leverage the same site network as in

STAR-T and based on their feedback that they routinely encounter patients on DOACs needing cardiac surgery and their proven track record

of trial execution, we believe the STAR-D trial can be run quickly and cost-effectively.

Finally, CMS recently announced details surrounding

the Transitional Coverage for Emerging Technologies (TCET) program and are currently in the public comment period. The current proposed

program falls short of what was widely anticipated by the medical device community and its trade organization, Advamed, providing a transparent

pathway for securing dedicated CMS national coverage of FDA Breakthrough Designated Devices within 6 months of FDA clearance or approval,

but departing from the automatic four-year national coverage upon FDA approval of qualified Breakthrough Devices that was discussed by

CMS previously. We expect there to be ongoing discussion and possible modification of the program. We believe DrugSorb-ATR, as a Breakthrough

Designated Device whose core target population falls squarely in the age group covered by Medicare, would still be an excellent candidate

for this TCET program and we will continue to follow the story as it develops. Meanwhile, the STAR-T trial is expected to provide significant

health economics data to support reimbursement through traditional private and public insurance pathways.

CytoSorb targets the massive critical care and

cadiac surgery markets outside the U.S., helping to control deadly inflammation and other life-threatening conditions such as sepsis,

lung injury, trauma, burn injury, liver failure, complications of surgery, cytokine release syndrome in cancer immunotherapy, and many

others. Following a post-COVID slowdown in hospital-based markets globally in 2022, we are pleased to report our third consecutive quarter

of sequential product sales growth and a 10% increase in Q2 2023, year-over-year. With many new growth initiatives, and importantly new

leadership in key positions in our therapy area verticals and our overall commercialization organization, we anticipate further momentum

of our business over time. Importantly, product gross margins have rebounded 700 basis points to 74%, a trend consistent with our guidance

of returning to 75-80% product gross margins on a quarterly basis this year. Our new manufacturing facility is fully online and producing

CytoSorb devices in volume.

We believe there is now no question of what we

have known for years - that CytoSorb is a powerful treatment of cytokine storm, particularly following the landmark publication in the

journal Critical Care, describing the excellent effect of CytoSorb on reducing systemic cytokine levels in a well-controlled human endotoxin

challenge model. We have learned a lot over the past 11 years of CytoSorb commercialization and the more than 200,000 human treatments

administered to date in patients that are literally battling between life and death. Every study that has been published - positive, neutral,

or negative - has taught us more about how to best treat patients with CytoSorb. We have distilled it down to the very simple message

of "Right Patient, Right Timing, Right Dose."

The concept of treating the right patient at the

right time with the right dose to have good clinical outcomes is, in fact, relevant to most therapies. For example, antibiotics are some

of the most commonly used drugs in the intensive care unit and are a perfect analogy for CytoSorb. Certainly you need antibiotics to kill

the pathogen and to survive a life-threatening infection, just as you need to control the deadly massive inflammatory response in sepsis

with CytoSorb. But despite antibiotics and the best standard of care (excluding CytoSorb), approximately 20-25% of patients with sepsis

and organ dysfunction will die, and 35-50% of patients with septic shock will still die. A lot of these failures can be traced back to

not following the "Right Patient, Right Timing, Right Dose" mantra. For example, if a patient with an infection is misdiagnosed

and treated with the wrong antibiotic, it will not work (e.g. treating COVID-19 with penicillin instead of Paxlovid ). Or if an infection

is not treated with antibiotics until the infection has spiraled out of control and the patient develops sepsis - then this is too

little too late.' Or if the dose of the antibiotic is not adjusted for the severity of illness, the antibiotic may not work optimally.

This is why for the past several years, thanks

to the observations of many dedicated CytoSorb users around the world, we have been emphasizing the "Right patient, right timing,

and right dose" with the early and aggressive treatment of patients with clear evidence of hyperinflammation. Many of the older

studies, for example, used CytoSorb relatively late in patients that had already developed kidney failure and were on dialysis, a generally

later stage complication in critical illness that itself increases the risk of death, making it more difficult to demonstrate a benefit.

Other studies did not evaluate the inflammatory status of patients. But when CytoSorb is used early and aggressively in documented hyperinflamed

patients, we have seen some outstanding results. This includes the recently published final CTC (CytoSorb Therapy in COVID-19) Registry