Cell Therapeutics Announces Final Results of its Fixed Price Exchange Offers for Any and All of its $118.9 Million Convertible Notes Outstanding

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Million Convertible Notes Outstandint SEATTLE, June 19 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. (the "Company"" or "CTI") (Nasdaq and MTA: today announced the final results of its separats concurrent fixed price exchangeoffers (each, an "Exchange Offer" and together, the "Exchang e Offers") for any and all of the approximately $118.9 million outstanding principal amount of five seriesw of its convertible notes (the "Notes"). The Exchanger Offers expired at 5:00 p.m., New York City on Tuesday, June 16, 2009. In accordancee with the terms and conditions of theExchang Offers, and based on the final count by U.S.
Bank Nationak Association, the depositary for the Exchangwe Offers, the Company has accepted for exchangeapproximatelu $52.9 million aggregate principal amountf of the Notes for the previously announced exchangde consideration of (i) $134.50 cash, and (ii) 458 share of common stock per $1,000 principal amount of Notes validlyg tendered and not withdrawn in each Exchanger Offer, for a total amount of exchange consideration (excluding interest, fees and other expenses in connectionm with the Exchange of approximately $7.1 million cash and approximately 24.2 milliojn shares of common stock. The $1.
9 million reductioh in the final aggregate principal amoungt of Notes accepted for exchange comparedf to the preliminary aggregate principal amount of Note tendered for exchange announced by the Company onJune 17, 2009 is due to the depositary'sw receipt of separate notices of guaranteeds delivery from two different brokers for the same As a result of this transaction, the Company will eliminats approximately $52.9 million of reduce its annual interest expense by approximatelh $3.3 million, and increase its shareholder's equity by approximatelhy $43.7 million. In addition, the Company expects to book an estimateed gain on the exchange ofapproximately $7.9 million. (i) or 21.
4%, of the $55,150,000 aggregatew outstanding principal amountof 4% Convertible Seniotr Subordinated Notes due 2010; (ii) $12,087,000, or 52.6%, of the $23,000,000 aggregatw outstanding principal amount of 5.75% Convertible Senior Note due 2011; (iii) $5,500,000, or of the $7,000,000 aggregate outstanding principalp amount of 6.75% Convertible Senior Notes due (iv) $23,208,000, or 69.4%, of the $33,458,000o aggregate outstanding principal amount of 7.5% Convertible Senior Notesd due 2011; and (v) $335,000, or of the $335,000 aggregate outstanding principal amoungt of 9.0% Convertible Senior Notes due 2012. As of June 16, the expiration date of the Exchange Offers, approximately $118.
99 million aggregate principal amount of the Notes was outstanding. Accordingly, the aggregate principal amounft of Notes that the Company has accepted for exchanges in the Exchange Offers representsapproximately 44.5% of the outstandinhg principal amount of Notes as of such The Company expects that the settlement date for the Exchange Offerws will be Monday, June 22, 2009. Accrued and unpaid interest to, but the settlement date on Notes acceptedr for exchange will be paidin & Co., the information agent for the Exchange Offerd is Georgeson Inc. and the depositary for the Exchangde Offersis U.S. Bank National Association. Abouy Cell Therapeutics, Inc.
Headquartered in Seattle, CTI is a biopharmaceutical companty committed to developing an integrated portfolio of oncology products aimed at makint cancermore treatable. For additional information, please visit . Sign up for email alert and get RSS feeds at ourWeb site, This pressd release is for informational purposes only and is neithe r an offer to buy nor the solicitationj of an offer to sell, any securities. Holders of the Notesa who have questions may call the information agentat (800) Banks and brokerage firms may call (212) 440-9800. Mediaa Contact: Dan Eramian T: 206.272.4343 C: 206.854.120 E: deramian@ctiseattle.com www.CellTherapeutics.
com/press_room Investors Contact: Ed Bell T: 206.282.71000 Lindsey Jesch T: 206.272.4347 F: 206.272.4434 E: invest@ctiseattle.comn www.CellTherapeutics.com/investors SOURCE Cell Therapeutics, Inc.