Cytori Therapeutics entered into an agreement with MBA Grupo, a European healthcare distributor, who will distribute the Celution System in Spain, Italy and Portugal starting early 2008 for reconstructive surgery applications.

MBA Grupo will oversee product sales, education and training for breast reconstruction following partial mastectomy initially, and for other reconstructive applications in the future.

Cytori's Celution System is an innovative medial device that removes a patient's own stem and regenerative cells from their fat tissue. The cells can then be delivered to the same patient in about an hour.

"Because regenerative medicine represents a tremendous emerging market opportunity, we aligned ourselves with Cytori to sell the Celution System, which will be the first broad-based commercial stem cell product in Europe," said Baudilio Zapico, chief executive officer, MBA Grupo. "Cytori's business model, which is based on the sale of a device and single use therapeutic sets for breast reconstruction, addresses a major unmet medical need and therefore we expect rapid market adoption."

Cytori and MBA Grupo plan to establish key centres in Spain, Italy and Portugal to conduct a post-market clinical study for breast reconstruction following lumpectomy. While the initial focus is breast reconstruction, Cytori and MBA Grupo intend to expand the use of the Celution System for other reconstructive and aesthetic applications in the future.

"Completing this distribution partnership is a key milestone toward building our commercialization infrastructure in Europe," said Bruce Reuter, senior vice president of international sales, marketing and distribution. "MBA Grupo is the ideal partner for Spain, Italy and Portugal due to their extensive experience in bringing new medical technologies successfully to the marketplace."

MBA Grupo employs 150 direct salespeople focused on bringing new and innovative technology to physicians in Spain, Italy and Portugal. With annual revenues of $90 million they are the leading independent distributor in this region.