Cytomedix Taking the Science of Wound Repair ...and Using It to Treat Wounds
CENTERS FOR MEDICARE AND MEDICAID SERVICES (CMS) REACHES FINAL COVERAGE DECISION ON PRP GEL
Cytomedix to Focus on Sales Efforts, Additional Data Generation, and Development of Other Patents Company to Host Conference Call on Thursday, March 20 at 11:00 a.m. EDT

Rockville, MD, March 19, 2008 – Cytomedix, Inc. (AMEX: GTF) today announced that the Centers for Medicare and Medicaid Services (CMS) has issued a national coverage determination applicable to platelet rich plasma (PRP) gel for use on chronic wounds. This decision reaffirms an existing CMS 2003 decision and, in essence, continues non-coverage of PRP gel, citing inadequate evidence. In its decision memorandum, CMS stated, “suggestive evidence is now available for review; however this evidence is significantly limited in quality and therefore inadequate.” The full decision is available at the CMS website via the following link: https://www.cms.hhs.gov/mcd/viewdecisionmemo.asp?id=208

The Company is disappointed with this outcome and believes that the evidence, including data from its own randomized, controlled, multi-center, double-blinded clinical trial, and other published studies, is adequate to support the reversal of the 2003 non-coverage decision, at least as related to diabetic foot ulcers, the focus of the Company’s clinical trial and the emphasis of the Company’s recent submissions to CMS. The Company is currently seeking a meeting with CMS to obtain clarification of further data and information that may be required by CMS to arrive at a positive coverage determination.

“We believe that the CMS determination tends to foster a two-tiered system whereby those who can afford to pay for PRP gel will receive it, but those who can’t will go without access to a technology that, in our view, is supported by good science and evidence of clinical and cost effectiveness benefits and strongly deserves to be reimbursed through Medicare,” said Dr. Kshitij Mohan, Chairman and Chief Executive Officer of Cytomedix. “We are determined to see Medicare and other third-party payers cover this technology, and are evaluating the most expeditious path to achieve that goal,” Dr. Mohan added.

The Company will also focus its efforts on its recently implemented sales and marketing strategy. The Company officially launched the AutoloGel™ System in the first quarter of 2008 and continues to devote significant resources and efforts toward its recently implemented sales and marketing strategy targeting the existing large non Medicare-sensitive markets such as Long-Term Acute Care Hospitals (LTAC’s) and Veterans Administration Hospitals (VA’s), which are not expected to be impacted by the CMS determination. A pharmaco-economic study commissioned by the Company and conducted by an independent consulting firm indicates that the AutoloGelTM System compares favorably against alternative wound management technologies for which comparable performance data was publicly available. The Company believes that this should be viewed positively by LTACs, which generally operate in a capitated payment environment, and VAs, which are sensitive to budgetary considerations.

 “We will continue to invest in our sales and marketing efforts as we can now market our product for its intended use on chronic wounds, and we believe that we are the only company with a published, prospective, randomized, and controlled clinical trial and a PRP gel technology that has a chronic wound indication. To further hasten the commercialization of our product, we have been strengthening both our sales force and senior leadership of our sales, marketing, and commercialization efforts,” said Dr. Mohan.

While maintaining a focus on the AutoloGel™ System, Cytomedix also plans to further strengthen its on-going efforts and discussions with other companies to commercialize other technologies based on its patents in areas such as hair restoration and angiogenic and anti-inflammatory peptides.

CONFERENCE CALL

The Company will host a conference call tomorrow, Thursday, March 20, 2008 at 11:00 am Eastern time. To participate, dial 1-877-407-9205 approximately 10 minutes before the conference call is scheduled to begin. Hold for the operator and reference the Cytomedix, Inc. conference call. International callers should dial 201-689-8054.

Access to a recording will also be available for seven days following the conference call. Dial 1-877-660-6853 to access playback. For international callers, dial 201-612-7415. Enter account number 286. The Conference I.D. is 279411.

ABOUT CYTOMEDIX

Cytomedix, Inc. is a biotechnology company specializing in processes and products derived from autologous platelet releasates for use on wounds and other applications. The current offering is the AutoloGel™ System, a process that utilizes an autologous platelet gel composed of multiple growth factors, other platelet releasates, and fibrin matrix. Additional information regarding Cytomedix is available at: http://www.cytomedix.com.

SAFE HARBOR STATEMENT

All statements in this news release that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this press release, include, without limitation, the Company’s plans and intentions relating to its sales and marketing strategy, its expectations relating to the effect of the CMS determination on the non-Medicare sensitive markets, its expectations as to how LTAC’s and VA’s will view the merits of the Company’s AutoloGel™ System, its ability to generate the data that would be satisfactory for CMS to arrive at a positive coverage decision, and its ability to commercialize technologies based on its other patents. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, including among others, the success of sales initiatives, governmental regulation, acceptance by the medical community and competition, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, as updated, from time to time, in the Company’s Quarterly Reports on Form 10-Q. We operate in a highly competitive and rapidly changing environment, thus new or unforeseen risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking statements. Readers are also urged to carefully review and consider the other various disclosures in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, as well as other public filings with the SEC since such date.