Cell Therapeutics Amends 'Modified Dutch Auction' Tender Offer for up to $89.2 million of Its Outstanding Convert...( SEATTLE May 18 /- Cell Therapeutics I...)

SEATTLE, May 18 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. (the "Company" or "CTI") (Nasdaq and MTA: CTIC) today announced that it has amended its "Modified Dutch Auction" tender offer (the "Exchange Offer") to increase the total consideration of its offer to exchange shares of its common stock, no par value (the "Common Stock"), and cash for an aggregate of up to $89.2 million principal amount of the following outstanding series of its convertible notes (the "Notes"):

• 4% Convertible Senior Subordinated Notes due 2010
• 5.75% Convertible Senior Notes due 2011
• 6.75% Convertible Senior Notes due 2010
• 7.5% Convertible Senior Notes due 2011
• 9% Convertible Senior Notes due 2012

Under the Exchange Offer, as amended, CTI will now offer to exchange shares of Common Stock and cash with a value not greater than $600 nor less than $550 (the "Exchange Consideration") for each $1,000 principal amount of Notes validly tendered and not withdrawn, with such value determined by a "Modified Dutch Auction" procedure. Originally, the minimum value had been $250 per $1,000 principal amount and the maximum value had been $300 per $1,000 principal amount. The cash portion of the Exchange Consideration will continue to be $200. Accrued and unpaid interest to, but excluding, the settlement date will continue to be exchanged for shares of Common Stock.

As a result of the increase in the portion of the Exchange Consideration consisting of shares of Common Stock, the Company has increased the maximum number of shares of Common Stock to be issued upon exchange of the Notes and to pay accrued and unpaid interest to 30.63 million shares of Common Stock.

A "Modified Dutch Auction" tender offer allows holders of the Notes to indicate the principal amount of Notes that such holders desire to tender
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