Cell Therapeutics Announces Preliminary Results of its Fixed Price Exchange Offers for Any and All of its $118.9 Million Convertible Notes O...( SEATTLE June 17 /- ...),Health

SEATTLE, June 17 /PRNewswire-FirstCall/ --

• Holders of Approximately 46.1% of Outstanding Notes Tendered in the Exchange Offers
• Outstanding Debt to be Reduced by Approximately $54.8 Million
• Future Annual Interest Expense Reduced by Approximately $3.4 Million
• Company to Book Approximately $8.2 Million Estimated Gain on Exchange
• Shareholder's Equity to Increase by Approximately $45.4 Million

Cell Therapeutics, Inc. (the "Company" or "CTI") (Nasdaq and MTA: CTIC) today announced the preliminary results of its separate concurrent fixed price exchange offers (each, an "Exchange Offer" and together, the "Exchange Offers") for any and all of the approximately $118.9 million outstanding principal amount of five series of its convertible notes (the "Notes"). The Exchange Offers expired at 5:00 p.m., New York City time, on Tuesday, June 16, 2009.

In accordance with the terms and conditions of the Exchange Offers, and based on the preliminary count by U.S. Bank National Association, the depositary for the Exchange Offers, the Company expects to accept for exchange approximately $54.8 million aggregate principal amount of the Notes for the previously announced exchange consideration of (i) $134.50 cash, and (ii) 458 shares of common stock per $1,000 principal amount of Notes validly tendered and not withdrawn in each Exchange Offer, for a total amount of exchange consideration (excluding interest, fees and other expenses in connection with the Exchange Offers) of approximately $7.4 million cash and approximately 25.1 million shares of common stock.

The approximately $54.8 million aggregate principal amount of Notes to be exchanged includes approximately $5.9 million principal amount of Notes tendered by notice of guaranteed delivery. Noteholder
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