**UNITED      STATES**

**SECURITIES AND EXCHANGE      COMMISSION**

**Washington,      D.C. 20549**

**______________**

**FORM      10-KSB**

**______________**

|            |                                                                                                                                        |        |
|------------|----------------------------------------------------------------------------------------------------------------------------------------|--------|
| **ý** | **ANNUAL                REPORT UNDER SECTION                13 OR 15(d)****OF THE SECURITIES                EXCHANGE ACT OF 1934**     |   |
|       | **For                the fiscal year ended December 31, 2005**                                                                         |   |
| ** ̈** | **TRANSITION                REPORT UNDER                SECTION 13 OR 15(d)****OF THE SECURITIES                EXCHANGE ACT OF 1934** |   |

**Commission      file number: 001-32518**

**______________**

**CYTOMEDIX,      INC.**

|                                                                                             |                                      |                                                                   |
|---------------------------------------------------------------------------------------------|--------------------------------------|-------------------------------------------------------------------|
| **Delaware**                                                                                |        | **23-3011702**                                                    |
| (State                or other jurisdiction ofincorporation or                organization) |                                 | (IRS                EmployerIdentification                Number) |

**416      Hungerford Drive, Suite 330**

**Rockville, Maryland      20850**

**(240)      499-2680**

**None**

**Common      Stock, Par Value $.0001**

----

**CYTOMEDIX,      INC.**

**TABLE      OF CONTENTS**

|                         |                          |                                                                                                                                                                                                                                                                                                                                                                                                                   |                          |          |
|-------------------------|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|----------|
|                    |                     |                                                                                                                                                                                                                                                                                                                                                                                                              |                     | **Page** |
| PART I                  |                     |                                                                                                                                                                                                                                                                                                                                                                                                              |                     |
| Item                1.  |                     | Business                                                                                                                                                                                                                                                                                                                                                                                                          |                     | 1        |
| Item                2.  |      | Description of Property                                                                                                                                                                                                                                                                                                                                                                                           |      | 10       |
| Item                3.  |                     | Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                 |                     | 10       |
| Item                4.  |                     | Submission of Matters to a Vote of Security                Holders                                                                                                                                                                                                                                                                                                                                                |                     | 10       |
|                    |                     |                                                                                                                                                                                                                                                                                                                                                                                                              |                     |     |
| PART II                 |                     |                                                                                                                                                                                                                                                                                                                                                                                                              |                     |
| Item                5.  |                     | Market for Common Equity and Related Stockholder                Matters                                                        |                     | 11       |
| Item                6.  |                     | Management’s Discussion and Analysis                                                                                                                                                                                                                                                                                                                                                                        |                     | 15       |
| Item                7.  |                     | Financial Statements (begin on page F-1 following                Item 14)                                                                                                                                                                                                                                                                                                                                         |                     | 23       |
| Item                8.  |                     | Changes in and Disagreements with Accountants                on                Accounting and Financial Disclosure                                                                                                                                                                                                                                                                                                |                     | 23       |
| Item                8A. |                     | Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                           |                     | 23       |
|                    |                     |                                                                                                                                                                                                                                                                                                                                                                                                              |                     |     |
| PART III                |                     |                                                                                                                                                                                                                                                                                                                                                                                                              |                     |
| Item                9.  |                     | Directors, Executive Officers, Promoters                and                Control Persons; Compliance with Section 16(a) of the Exchange                Act                                                                                                                                                                                                                                                      |                     | 24       |
| Item                10. |                     | Executive Compensation                                                                                                                                                                                                                                                                                                                                                                                            |                     | 26       |
| Item                11. |                     | Security Ownership of Certain Beneficial                Owners                and Management and RelatedStockholder Matters                                                                                                                                                                                                                                                                                       |                     | 29       |
| Item                12. |                     | Certain Relationships and Related                Transactions                                                                                                                                                                                                                                                                                                                                                     |                     | 32       |
| Item                13. |                     | Exhibits (see Exhibit Index at end of                report)                                                                                                                                                                                                                                                                                                                                                      |                     | 32       |
| Item                14. |                     | Principal Accountant Fees and Services                                                                                                                                                                                                                                                                                                                                                                            |                     | 32       |

----

**PART      I**

**Item 1.      Business**

**Corporate      History**

**Overview**

----

***Market***

|                                                                                                                              |              |          |              |               |
|------------------------------------------------------------------------------------------------------------------------------|--------------|----------|--------------|---------------|
| **Breakdown of Chronic                Wound                Market**(number of wounds in                millions)             |
| *Source:                Growth Factors: Indications, Products, and                Markets; Kalorama Publications, Oct. 2003* |
|                                                                                                                         |         |     |         |          |
|                                                                                                                         |         | **U.S.** |         | **Worldwide** |
| Diabetic                Foot Ulcers                                                                                          |    | 1.5      |    | 6.0           |
| Venous                Stasis                                                                                                 |         | 0.9      |         | 4.0           |
| Pressure                Ulcers                                                                                               |         | 2.1      |         | 8.0           |
| Totals                                                                                                                       |         | 4.5      |         | 18.0          |

----

***Strategy***

***Clinical Trial      and      Reimbursement***

----

***Patents and      Licensing***

----

|                                                                                                                                                                              |                                |                                     |                                |                                         |                                |                                         |         |                                |                                                  |                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-------------------------------------|--------------------------------|-----------------------------------------|--------------------------------|-----------------------------------------|---------|--------------------------------|--------------------------------------------------|----------------------------------------------------|
| **Licensee**                                                                                                                                                                 |                           | **Date                ofAgreement** |                           | **Date                ofExpiration(4)** |                           | **Initial                LicensingFee** |    |                           | **On-goingRoyalty                Percentage(2)** |
|                                                                                                                                                                         |                           |                                |                           |                                    |                           |                                    |    |                           |                                             |                                               |
| DePuy                Spine, Inc.(1)                                                                                                                                          |       | 3/19/013/4/05                       |       | 11/24/09                                |       | $                                       | 750,000 |       |                                             | 6.5%                                               |
|                                                                                                                                                                         |                           |                                |                           |                                    |                           |                                    |    |                           |                                             |                                               |
| Medtronic,                Inc.                                                                                                                                               |                           | 5/1/05                              |                           | 11/24/09                                |                           | $                                       | 680,000 |                           |                                        | 7.5% on disposables1.5% on                hardware |
|                                                                                                                                                                         |                           |                                |                           |                                    |                           |                                    |    |                           |                                             |                                               |
| Harvest                Technologies, Inc.                                                                                                                                    |                           | 6/30/05                             |                           | 11/24/09                                |                           | $                                       | 500,000 |                           |                                             | 7.5% on disposables1.5% on                hardware |
|                                                                                                                                                                         |                           |                                |                           |                                    |                           |                                    |    |                           |                                             |                                               |
| Perfusion                Partners, Inc.                                                                                                                                      |                           | 6/26/05                             |                           | 11/24/09                                |                           | $                                       | 250,000 | (3)                            |                                             | 10%                                                |
|                                                                                                                                                                         |                           |                                |                           |                                    |                           |                                    |    |                           |                                             |                                               |
| COBE                Cardiovascular, Inc.                                                                                                                                     |                           | 10/7/05                             |                           | 11/24/09                                |                           | $                                       | 45,000  |                           |                                             | 7.5% on disposables1.5% on                hardware |
|                                                                                                                                                                         |                           |                                |                           |                                    |                           |                                    |    |                           |                                             |                                               |
| SafeBlood                Technologies,                Inc.                    |                           | 10/12/05                            |                           | 11/24/09                                |                           | $                                       | 50,000  | (3)                            |                                             | 8.0% to                9.0%                        |

***Non-Reimbursement      Sensitive Market***

----

***Sales and      Marketing***

***Competition***

----

***Intellectual      Property Rights***

***Government      Regulation***

----

***Government      Approval***

----

***Fraud      and Abuse Laws***

----

***Research      and Development***

***Employees***

**Item 2. Description      of      Property**

**Item 3. Legal      Proceedings**

**Item 4. Submission      of      Matters to a Vote of Security Holders**

|                                      |                          |                              |                          |                                   |                          |                  |
|--------------------------------------|--------------------------|------------------------------|--------------------------|-----------------------------------|--------------------------|------------------|
| **Nominee**                          |                     | **Votes                For** |                     | **Votes                Withheld** |                     | **Abstentions*** |
|                                 |                     |                         |                     |                              |                     |             |
| James                S. Benson       |                     | 16,814,605                   |                     | 101,303                           |                     | —          |
| David                P. Crews        |      | 16,816,605                   |      | 99,303                            |      | —          |
| Arun                K. Deva          |                     | 16,872,956                   |                     | 42,952                            |                     | —          |
| David                F. Drohan       |                     | 16,814,505                   |                     | 101,403                           |                     | —          |
| Mark                T. McLoughlin    |                     | 16,814,605                   |                     | 101,303                           |                     | —          |
| Dr. Kshitj                Mohan |                     | 16,869,406                   |                     | 46,502                            |                     | —          |

----

**PART      II**

**Item 5. Market for      Common Equity and Related Stockholder Matters**

|                                                                                                                                                                                                                                                                                                                               |                          |          |        |                          |        |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|----------|--------|--------------------------|--------|--------|
| **Quarter                Ended**                                                                                                                                                                                                                                                                                              |                     | **High** |   | **Low**                  |
|                                                                                                                                                                                                                                                                                                                          |                     |     |   |                     |   |   |
| December                31,                2005                                              |      | $        | 3.36   |      | $      | 2.01   |
| September                30, 2005                                                                                                                                                                                                                                                                                             |                     | $        | 6.85   |                     | $      | 1.68   |
| June                30,                2005                                                                                                                                                                                                                                                                                   |                     | $        | 5.07   |                     | $      | 3.12   |
| March                31,                2005                                                                                                                                                                                                                                                                                  |                     | $        | 3.50   |                     | $      | 2.35   |
| December                31, 2004                                                                                                                                                                                                                                                                                              |                     | $        | 2.58   |                     | $      | 1.99   |
| September                30, 2004                                                                                                                                                                                                                                                                                             |                     | $        | 2.14   |                     | $      | 1.24   |
| June                30,                2004                                                                                                                                                                                                                                                                                   |                     | $        | 2.83   |                     | $      | 1.80   |
| March                31,                2004                                                                                                                                                                                                                                                                                  |                     | $        | 2.55   |                     | $      | 1.15   |

**Recent Sales of      Unregistered Securities**

***Common      Stock***

***Series A      Convertible Preferred Stock***

----

***Series B      Convertible Preferred Stock***

***Series C      Convertible Preferred Stock***

----

***Warrants and      Options***

|                                                                     |                                |           |                                |           |
|---------------------------------------------------------------------|--------------------------------|-----------|--------------------------------|-----------|
| **Equity                Instrument**                                |                           | **2005**  |                           | **2004**  |
|                                                                |                           |      |                           |      |
| A                and B Warrants(1)                                  |       | 22,500    |       | 627,155   |
| C-1                Warrants(2)                                      |                           | 815,900   |                           | 1,301,500 |
| C-2                Warrants(2)                                      |                           | 876,750   |                           | 1,314,000 |
| Unit                Warrants(3)                                     |                           | 4,250,000 |                           | 4,500,000 |
| Other                warrants(4)                                    |                           | 2,563,838 |                           | 3,510,545 |
| Options                issued under the Long-Term Incentive Plan(5) |                           | 2,782,077 |                           | 2,516,577 |

----

***Activity***

|                                                                                                                                                                                                                                                                                                                        |                                |                                |                                |              |           |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------|-----------|
| **Source**                                                                                                                                                                                                                                                                                                             |                           | **#                of Shares** |                           | **Proceeds** |
|                                                                                                                                                                                                                                                                                                                   |                           |                           |                           |         |      |
| Conversion                of series A convertible preferred shares(1)                                                                                                                                                                                                                                                  |       | 431,528                        |       |         | —   |
| Conversion                of series B convertible preferred shares(1)                                                                                                                                                                                                                                                  |                           | 449,942                        |                           |         | —   |
| Conversion                of series C convertible preferred shares                                                                                                                                                                                                                                                     |                           | 839,500                        |                           |         | —   |
| Exercise                of class A warrants                                                                                                                                                                                                                                                                            |                           | 42,500                         |                           | $            | 42,500    |
| Exercise                of class B warrants(2)                                                                                                                                                                                                                                                                         |                           | 507,008                        |                           | $            | 673,851   |
| Exercise                of class C-1 warrants                                                                                                                                                                                                                                                                          |                           | 462,900                        |                           | $            | 694,350   |
| Exercise                of class C-2 warrants                                                                                                                                                                                                                                                                          |                           | 478,700                        |                           | $            | 689,925   |
| Exercise                of unit offering warrants                                                                                                                                                                                                                                                                      |                           | 250,000                        |                           | $            | 375,000   |
| Exercise                of options issued under the Long-Term Incentive                Plan(3)                                     |                           | 252,000                        |                           | $            | 367,500   |
| Exercise                of other warrants(2)                                                                                                                                                                                                                                                                           |                           | 870,190                        |                           | $            | 356,101   |
| Other                issuances                                                                                                                                                                                                                                                                                         |                           | 73,673                         |                           |         | —   |
| Totals                                                                                                                                                                                                                                                                                                                 |                           | 4,657,941                      |                           | $            | 3,199,227 |

----

**Item 6. Management’s      Discussion and Analysis**

**Comparative Results      of      Operations for the Years Ended December 31, 2005 and 2004**

***Revenues***

***Gross      Profit***

----

***Operating      Expenses***

**Operating      Expense Information Not in Conformity with      Generally Accepted Accounting Principles**

|                                                                                                                                                                                                                                                       |                          |                                                 |           |                                                                |        |                                                                               |                     |        |           |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|-------------------------------------------------|-----------|----------------------------------------------------------------|--------|-------------------------------------------------------------------------------|---------------------|--------|-----------|--------|
|                                                                                                                                                                                                                                                  |                     | **Year                Ended December 31, 2005** |      |
| **Account**                                                                                                                                                                                                                                           |                     | **GAAPas                Reported**              |      | **NetEquity                Based                Compensation** |   | **Non-GAAPOperatingExpensesWithout                Equity Based Compensation** |                |
|                                                                                                                                                                                                                                                  |                     |                                            |      |                                                           |   |                                                                          |                |   |      |   |
| Salaries                and wages                                                                                                                                                                                                                     |      | $                                               | 2,970,036 |                                            | $      | (1,352,448                                                                    | )    | $      | 1,617,588 |   |
| Consulting                expenses                                                                                                                                                                                                                    |                     |                                            | 768,116   |                                                           |   | (377,799                                                                      | )                   |   | 390,317   |   |
| Consulting                expenses – related party                                                                                                                                                                                              |                     |                                            | 185,764   |                                                           |   | (77,764                                                                       | )                   |   | 108,000   |   |
| Professional                fees                                                                                                                                                                                                                      |                     |                                            | 1,018,779 |                                                           |   | —                                                                       |                |   | 1,018,779 |   |
| Royalty                expenses – related party                                                                                                                                                                                                 |                     |                                            | 75,000    |                                                           |   | —                                                                       |                |   | 75,000    |   |
| Clinical                trial related expenses                                                                                                                                                                                                        |                     |                                            | 1,588,916 |                                                           |   | —                                                                       |                |   | 1,588,916 |   |
| General                and administrative                expenses                               |                     |                                            | 1,472,624 |                                                           |   | (208,644                                                                      | )                   |   | 1,263,980 |   |
| Total                operating expenses                                                                                                                                                                                                               |                     | $                                               | 8,079,235 |                                                           | $      |  (2,016,655                                                              | )                   | $      | 6,062,580 |   |

|                                                                                                                                                                                                                                                             |                          |                                                 |           |                                                                |        |                                                                               |                     |        |           |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|-------------------------------------------------|-----------|----------------------------------------------------------------|--------|-------------------------------------------------------------------------------|---------------------|--------|-----------|--------|
|                                                                                                                                                                                                                                                        |                     | **Year                Ended December 31, 2004** |      |
| **Account**                                                                                                                                                                                                                                                 |                     | **GAAPas                Reported**              |      | **NetEquity                Based                Compensation** |   | **Non-GAAPOperatingExpensesWithout                Equity Based Compensation** |                |
|                                                                                                                                                                                                                                                        |                     |                                            |      |                                                           |   |                                                                          |                |   |      |   |
| Salaries                and wages                                                                                                                                                                                                                           |      | $                                               | 1,769,170 |                                            | $      | (578,492                                                                      | )    | $      | 1,190,678 |   |
| Consulting                expenses                                                                                                                                                                                                                          |                     |                                            | 2,440,901 |                                                           |   | (1,934,668                                                                    | )                   |   | 506,233   |   |
| Consulting                expenses – related party                                                                                                                                                                                                    |                     |                                            | 789,189   |                                                           |   | (529,085                                                                      | )                   |   | 260,104   |   |
| Professional                fees                                                                                                                                                                                                                            |                     |                                            | 867,928   |                                                           |   | (10,250                                                                       | )                   |   | 857,678   |   |
| Royalty                expenses – related party                                                                                                                                                                                                       |                     |                                            | 75,000    |                                                           |   | —                                                                       |                |   | 75,000    |   |
| Clinical                trial related expenses                                                                                                                                                                                                              |                     |                                            | 1,385,120 |                                                           |   | —                                                                       |                |   | 1,385,120 |   |
| General                and administrative                expenses                                |                     |                                            | 1,294,816 |                                                           |   | (44,761                                                                       | )                   |   | 1,250,055 |   |
| Total                operating expenses                                                                                                                                                                                                                     |                     | $                                               | 8,622,124 |                                                           | $      |  (3,097,256                                                              | )                   | $      | 5,524,868 |   |

***Salaries and      Wages***

----

***Consulting      and Related Party Consulting Expenses***

***Professional      Fees***

***Clinical Trial      Related Expenses***

***General and      Administrative Expenses***

***Other      Income/Expenses***

----

**Modified      EBITDA Information Not in Conformity with Generally Accepted Accounting      Principles**

|                                                                                                                                                                                                   |                          |                                            |            |                     |        |             |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|--------------------------------------------|------------|---------------------|--------|-------------|--------|
|                                                                                                                                                                                              |                     | **Year                Ended December 31,** |       |
|                                                                                                                                                                                              |                     | **2005**                                   |       | **2004**            |   |
|                                                                                                                                                                                              |                     |                                       |       |                |   |        |   |
| Net                loss to common stockholders as stated (GAAP)                                                                                                                                   |      | $                                          | (6,588,387 | )    | $      | (11,259,187 | )      |
|                                                                                                                                                                                              |                     |                                       |       |                |   |        |   |
| Adjustments                to reconcile net loss to common stockholders to EBITDA:                                                                                                                |                     |                                       |       |                |   |        |   |
|                                                                                                                                                                                              |                     |                                       |       |                |   |        |   |
| Preferred                dividends accrued                                                                                                                                                        |                     |                                       | 84,902     |                |   | 201,935     |   |
| Series                C Preferred stock dividend attributable to belowmarket beneficial                conversion features                                                                        |                     |                                       | —    |                |   | 2,800,000   |   |
| Depreciation                and amortization of patents                                                                                                                                           |                     |                                       | 224,274    |                |   | 218,954     |   |
| Amortization                of Research Works report(1)                                                                                                                                           |                     |                                       | —    |                |   | 44,761      |   |
| Amortization                – deferred consulting fees(2)                                                                                                                                   |                     |                                       | 455,563    |                |   | 2,474,003   |   |
| Amortization                of the value of stock options recorded as                            compensation                (net)(3) |                     |                                       | 1,526,092  |                |   | 578,492     |   |
| Other                expense(4)                                                                                                                                                                   |                     |                                       | 262,500    |                |   | —     |   |
| MODIFIED                EBITDA – NON GAAP                                                                                                                                                   |                     | $                                          | (4,035,056 | )                   | $      | (4,941,042  | )      |

**Liquidity and Capital      Resources as of December 31, 2005**

|                                                                                                                                                                                                                                            |                          |        |           |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|--------|-----------|--------|
| Cash                on hand at December 31, 2005                                                                                                                                                                                           |      | $      | 3,123,927 |   |
| Committed                cash for completion of clinical                trials                           |                     |   | (244,100  | )      |
| Cash                available for operations in 2006                                                                                                                                                                                       |                     | $      | 2,879,827 |   |

----

**Risk      Factors**

***The Company Has      Limited Sources of Working Capital***

***The Company Has      a      History of Losses***

***The Company Has      a      Short Operating History and Limited Operating Experience***

***The Company’s      Intellectual Property Assets Are Critical to Its Success***

----

***The AutoloGelTMSystem Is Subject      to Governmental Regulation***

***The Company Could      Be Adversely Affected if Customers Cannot Obtain      Reimbursement***

----

***The Results from      the Clinical Trial Are Critical to the Company’s Success***

***Royalty Revenues      Are Unpredictable***

***The Success of      the      AutologelTM System Is Dependent on Acceptance by the Medical      Community***

***The Company May      Be      Unable to Attract and Retain Key Personnel***

***Legislative and      Administrative Action May Have an Adverse Effect on the      Company***

----

***The Company Could      Be Affected by Malpractice Claims***

***AutoloGelTM Has      Existing Competition in the Marketplace***

**Prospects for the      Future**

----

**Item 7. Financial      Statements**

**Item 8. Changes in      and      Disagreements with Accountants on Accounting and Financial      Disclosure**

**Item 8A. Control      and      Procedures**

----

**PART      III**

**Item 9. Directors,      Executive Officers, Promoters and Control Persons; Compliance with Section      16(a)      of the Exchange Act**

|                                                                                                                                      |                                |                                 |                                |                                                    |                                |                                                              |
|--------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|----------------------------------------------------|--------------------------------|--------------------------------------------------------------|
| **Name**                                                                                                                             |                           | **  Age  ** |                           | **Date                of Election or Appointment** |                           | **Position(s)                with the Company**              |
|                                                                                                                                 |                           |                            |                           |                                               |                           |                                                         |
| James                S. Benson                                                                                                       |       | 66                              |       | November                1, 2004                    |       | Director                                                     |
| David                P. Crews                                                                                                        |                           | 42                              |                           | September                28, 2001                  |                           | Director                                                     |
| Arun                K. Deva                                                                                                          |                           | 60                              |                           | November                23, 2004                   |                           | Director                                                     |
| David                F. Drohan                                                                                                       |                           | 66                              |                           | July                12,                2004        |                           | Director                                                     |
| Mark                T.                McLoughlin               |                           | 49                              |                           | June                7,                2004         |                           | Director                                                     |
| Kshitij                Mohan                                                                                                         |                           | 60                              |                           | April                20, 2004                      |                           | Chairman                of the Board Chief Executive Officer |
| Andrew                Maslan                                                                                                         |                           | 35                              |                           | August                15, 2005                     |                           | Chief                Financial Officer                       |
| Carelyn                Fylling                                                                                                       |                           | 58                              |                           | December                1, 2001                    |                           | Vice                President of Professional Services       |

***James S.      Benson***

***David P.      Crews***

***Arun K.      Deva***

***David F.      Drohan***

----

***Mark T.      McLoughlin***

***Dr. Kshitij      Mohan***

***Andrew S.      Maslan***

***Carelyn P. Fylling,      RN, MSN,***

***Audit      Committee***

----

***Code of Conduct      and Ethics***

***Section 16(a)      Beneficial Ownership Reporting Compliance***

**Item 10. Executive      Compensation**

**Summary      Compensation Table**

|                                                                                                                                                                                              |                    |                                              |                    |                                        |         |                           |        |                                             |                    |                                                      |        |                    |           |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|----------------------------------------------|--------------------|----------------------------------------|---------|---------------------------|--------|---------------------------------------------|--------------------|------------------------------------------------------|--------|--------------------|-----------|
|                                                                                                                                                                                         |               |                                         |               |                                   |    | **Long-TermCompensation** |
|                                                                                                                                                                                         |               |                                         |               | **Annual                Compensation** |    | **Awards**                |
| **Name                and Principal Position**                                                                                                                                               |               | **   Year   ** |               | **Salary**                             |    | **Bonus**                 |   | **Other                AnnualCompensation** |               | **SecuritiesUnderlying                Options/SARs** |
|                                                                                                                                                                                         |               |                                         |               |                                   |    |                      |   |                                        |               |                                                 |   |               |      |
| Kshitij                Mohan(1)                                                                                                                                                              |     | 2005                                         |     | $                                      | 300,097 |            | $      | 150,000                                     |     | $                                                    | 25,000 |     | 100,000   |
| Chief                Executive Officer                                                                                                                                                       |               | 2004                                         |               |                                   | 192,709 |                      |   | —                                     |               |                                                 | 35,558 |               | 1,000,000 |
| (Effective                April 1, 2004)                                                                                                                                                     |               | 2003                                         |               |                                   | — |                      |   | —                                     |               |                                                 |   |               | —   |
|                                                                                                                                                                                         |               |                                         |               |                                   |    |                      |   |                                        |               |                                                 |   |               |      |
| Mark                E. Cline(2)                                                                                                                                                              |               | 2005                                         |               |                                   | — |                      |   | —                                     |               |                                                 |   |               | —   |
| President                                                                                                                                                                                    |               | 2004                                         |               |                                   | 72,841  |                      |   | —                                     |               |                                                 |   |               | 150,000   |
| (Resigned                June 29, 2004)                                                                                                                                                      |               | 2003                                         |               |                                   | 15,625  |                      |   | —                                     |               |                                                 |   |               | —   |
|                                                                                                                                                                                         |               |                                         |               |                                   |    |                      |   |                                        |               |                                                 |   |               |      |
| Carelyn                P. Fylling(3)                                                                                                                                                         |               | 2005                                         |               |                                   | 134,815 |                      |   | —                                     |               |                                                 |   |               | —   |
| VP                Professional Services                                                                                                                                                      |               | 2004                                         |               |                                   | 130,545 |                      |   | —                                     |               |                                                 |   |               | —   |
|                                                                                                                                                                                         |               | 2003                                         |               |                                   | 130,000 |                      |   | —                                     |               |                                                 |   |               | 19,077    |
|                                                                                                                                                                                         |               |                                         |               |                                   |    |                      |   |                                        |               |                                                 |   |               |      |
| Andrew                S. Maslan(4)                                                                                                                                                           |               | 2005                                         |               |                                   | 67,500  |                      |   | —                                     |               |                                                 |   |               | 60,000    |
| Chief                Financial Officer                                                                                                                                                       |               | 2004                                         |               |                                   | — |                      |   | —                                     |               |                                                 |   |               | —   |
| (Effective                August 16, 2005)                                                                                                                                                   |               | 2003                                         |               |                                   | — |                      |   | —                                     |               |                                                 |   |               | —   |
|                                                                                                                                                                                         |               |                                         |               |                                   |    |                      |   |                                        |               |                                                 |   |               |      |
| William                L. Allender(5)                                                                                                                                                        |               | 2005                                         |               |                                   | 118,688 |                      |   | 15,000                                      |               |                                                 |   |               | —   |
| Chief                Financial Officeer                                                                                                                                                      |               | 2004                                         |               |                                   | 100,000 |                      |   | —                                     |               |                                                 |   |               | —   |
| (Resigned                August 15,                2005)                       |               | 2003                                         |               |                                   | 11,875  |                      |   | —                                     |               |                                                 |   |               | 175,000   |

----

**Option/SAR      Grants in 2005**

|                                                                                                                                                                   |                                |                                                                     |                                |                                                                                           |                                 |                                               |         |                                                              |        |                    |                                |           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------------------------------------------|--------------------------------|-------------------------------------------------------------------------------------------|---------------------------------|-----------------------------------------------|---------|--------------------------------------------------------------|--------|--------------------|--------------------------------|-----------|
| **Name                and Principal Position**                                                                                                                    |                           | **Number                ofSecuritiesUnderlyingOptions/SARsGranted** |                           | **%                of TotalOptions/SARsGranted toEmployees                inFiscal Year** |                            | **Exerciseor                BasePrice($/sh)** |    | **MarketValueon                Dateof                Grant** |   | **ExpirationDate** |
|                                                                                                                                                              |                           |                                                                |                           |                                                                                      |                            |                                          |    |                                                         |   |               |                           |      |
| Kshitij                Mohan                                                                                                                                      |       | 100,000                                                             |       | 63                                                                                        | %      | $                                             | 1.50    |                                     | $      | 5.00               |       | 6/6/2015  |
| Chief                Executive                Officer                   |                           |                                                                |                           |                                                                                      |                            |                                          |    |                                                         |   |               |                           |      |
| (Effective                April 1, 2004)                                                                                                                          |                           |                                                                |                           |                                                                                      |                            |                                          |    |                                                         |   |               |                           |      |
|                                                                                                                                                              |                           |                                                                |                           |                                                                                      |                            |                                          |    |                                                         |   |               |                           |      |
| Mark                E. Cline                                                                                                                                      |                           | —                                                             |                           | —                                                                                   |                            |                                          | — |                                                         |   | —            |                           | —   |
| President                                                                                                                                                         |                           |                                                                |                           |                                                                                      |                            |                                          |    |                                                         |   |               |                           |      |
| (Resigned                June 29, 2004)                                                                                                                           |                           |                                                                |                           |                                                                                      |                            |                                          |    |                                                         |   |               |                           |      |
|                                                                                                                                                              |                           |                                                                |                           |                                                                                      |                            |                                          |    |                                                         |   |               |                           |      |
| Carelyn                P. Fylling                                                                                                                                 |                           | —                                                             |                           | —                                                                                   |                            |                                          | — |                                                         |   | —            |                           | —   |
| VP                Professional Services                                                                                                                           |                           |                                                                |                           |                                                                                      |                            |                                          |    |                                                         |   |               |                           |      |
|                                                                                                                                                              |                           |                                                                |                           |                                                                                      |                            |                                          |    |                                                         |   |               |                           |      |
| Andrew                S. Maslan                                                                                                                                   |                           | 60,000                                                              |                           | 37                                                                                        | %                               |                                          | 5.07    |                                                         |   | 5.07               |                           | 1/11/2016 |
| Chief                Financial Officer                                                                                                                            |                           |                                                                |                           |                                                                                      |                            |                                          |    |                                                         |   |               |                           |      |
| (Effective                August 16, 2005)                                                                                                                        |                           |                                                                |                           |                                                                                      |                            |                                          |    |                                                         |   |               |                           |      |
|                                                                                                                                                              |                           |                                                                |                           |                                                                                      |                            |                                          |    |                                                         |   |               |                           |      |
| William                L. Allender                                                                                                                                |                           | —                                                             |                           | —                                                                                   |                            |                                          | — |                                                         |   | —            |                           | —   |
| Chief                Financial Officeer                                                                                                                           |                           |                                                                |                           |                                                                                      |                            |                                          |    |                                                         |   |               |                           |      |
| (Resigned                August 15, 2005)                                                                                                                         |                           |                                                                |                           |                                                                                      |                            |                                          |    |                                                         |   |               |                           |      |

----

|  |  |  |  |  |  |  |  |  |  |  |  |  |
|--|--|--|--|--|--|--|--|--|--|--|--|--|

**Aggregated      Option/SAR Exercises in 2005 and Year-End      Option/SAR Values**

|                                                                                                                                                                                                                                          |                                |                             |                                |        |                   |                                |                                                                                                                                            |                                |                                                                                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-----------------------------|--------------------------------|--------|-------------------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------------------------------------------------------------|
| **Name                and Principal Position**                                                                                                                                                                                           |                           | **ShareAcquiredonExercise** |                           |   | **ValueRealized** |                           | **Number                of                SecuritiesUnderlyingUnexercisedOptions/SARs atFY                End(Exercisable/Unexercisable)** |                           | **Value                of UnexercisedIn-The-MoneyOptions/SARs                atFY End(Exercisable/Unexercisable)** |
|                                                                                                                                                                                                                                     |                           |                        |                           |   |              |                           |                                                                                                                                       |                           |                                                                                                               |
| Kshitij                Mohan                                   |       | —                     |       | $      | —           |       | 850,000/250,000                                                                                                                            |       | $722,500/$212,500                                                                                                  |
| Chief                Executive Officer                                                                                                                                                                                                   |                           |                        |                           |   |              |                           |                                                                                                                                       |                           |                                                                                                               |
| (Effective                April 1, 2004)                                                                                                                                                                                                 |                           |                        |                           |   |              |                           |                                                                                                                                       |                           |                                                                                                               |
|                                                                                                                                                                                                                                     |                           |                        |                           |   |              |                           |                                                                                                                                       |                           |                                                                                                               |
| Mark                E. Cline                                                                                                                                                                                                             |                           | 20,000                      |                           |   | 25,950            |                           | 130,000/0                                                                                                                                  |                           | 110,500/0                                                                                                          |
| President                                                                                                                                                                                                                                |                           |                        |                           |   |              |                           |                                                                                                                                       |                           |                                                                                                               |
| (Resigned                June 29, 2004)                                                                                                                                                                                                  |                           |                        |                           |   |              |                           |                                                                                                                                       |                           |                                                                                                               |
|                                                                                                                                                                                                                                     |                           |                        |                           |   |              |                           |                                                                                                                                       |                           |                                                                                                               |
| Carelyn                P. Fylling                                                                                                                                                                                                        |                           | —                     |                           |   | —           |                           | 269,077/0                                                                                                                                  |                           | 233,485/0                                                                                                          |
| VP                Professional Services                                                                                                                                                                                                  |                           |                        |                           |   |              |                           |                                                                                                                                       |                           |                                                                                                               |
|                                                                                                                                                                                                                                     |                           |                        |                           |   |              |                           |                                                                                                                                       |                           |                                                                                                               |
| Andrew                S. Maslan                                                                                                                                                                                                          |                           | —                     |                           |   | —           |                           | 15,000/45,000                                                                                                                              |                           | 0/0                                                                                                                |
| Chief                Financial Officer                                                                                                                                                                                                   |                           |                        |                           |   |              |                           |                                                                                                                                       |                           |                                                                                                               |
| (Effective                August 16, 2005)                                                                                                                                                                                               |                           |                        |                           |   |              |                           |                                                                                                                                       |                           |                                                                                                               |
|                                                                                                                                                                                                                                     |                           |                        |                           |   |              |                           |                                                                                                                                       |                           |                                                                                                               |
| William                L. Allender                                                                                                                                                                                                       |                           | —                     |                           |   | —           |                           | 175,000/0                                                                                                                                  |                           | 148,750/0                                                                                                          |
| Chief                Financial Officer                                                                                                                                                                                                   |                           |                        |                           |   |              |                           |                                                                                                                                       |                           |                                                                                                               |
| (Resigned                August 15, 2005)                                                                                                                                                                                                |                           |                        |                           |   |              |                           |                                                                                                                                       |                           |                                                                                                               |

**Employment      Agreements**

----

**Compensation of      Directors**

**Item 11. Security      Ownership of Certain Beneficial Owners and Management and RelatedStockholder      Matters**

**Equity      Compensation Plan Information as of December 31, 2005**

|                                                                                                                                                                                                                        |                                |                                                                                                                                        |                                |                                                                                          |        |                                                                                           |         |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|---------|
| **Plan                Category**                                                                                                                                                                                       |                           | **Number                ofSecurities toBe Issued                UponExercise ofOutstandingOptions,Warrants,and                Rights** |                           | **WeightedAverageExercisePrice                ofOutstandingOptions,Warrants,and Rights** |   | **Number                ofSecuritiesRemainingAvailablefor                FutureIssuance** |
|                                                                                                                                                                                                                   |                           | **(a)**                                                                                                                                |                           | **(b)**                                                                                  |   | **(c)**                                                                                   |
|                                                                                                                                                                                                                   |                           |                                                                                                                                   |                           |                                                                                     |   |                                                                                      |    |
| Equity                compensation plans approved by security holders                                                                                                                                                  |       | 2,782,077                                                                                                                              |       | $                                                                                        | 1.73   |                                                                  | 910,923 |
|                                                                                                                                                                                                                   |                           |                                                                                                                                   |                           |                                                                                     |   |                                                                                      |    |
| Equity                compensation plans not approved by security                holders                      |                           | 0                                                                                                                                      |                           |                                                                                     |   |                                                                                      | 0       |
|                                                                                                                                                                                                                   |                           |                                                                                                                                   |                           |                                                                                     |   |                                                                                      |    |
| Total                                                                                                                                                                                                                  |                           | 2,782,077                                                                                                                              |                           | $                                                                                        | 1.73   |                                                                                      | 910,923 |

----

**Security Ownership      of Certain Beneficial Owners**

|                                                                                                                                                                                                                                               |                                |                                                                       |                                |                                                                           |                                   |                                    |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-----------------------------------------------------------------------|--------------------------------|---------------------------------------------------------------------------|-----------------------------------|------------------------------------|--------|
| **Title                of Class**                                                                                                                                                                                                             |                           | **Name                and Address ofBeneficial                Owner** |                           | **Amount                andNature ofBeneficial                Ownership** |                              | **Percent                ofClass** |   |
|                                                                                                                                                                                                                                          |                           |                                                                  |                           |                                                                      |                              |                               |   |
| Common                Stock                                    |       | Michael P. Marcus                                                     |       | 1,388,500                                                                 | (1)      | 5.3                                | %      |
|                                                                                                                                                                                                                                          |                           | 1600 Rockcliff Rd.                                                    |                           |                                                                      |                              |                               |   |
|                                                                                                                                                                                                                                          |                           | Austin, Texas  78746                                             |                           |                                                                      |                              |                               |   |
|                                                                                                                                                                                                                                          |                           |                                                                  |                           |                                                                      |                              |                               |   |
| Common                Stock                                                                                                                                                                                                                   |                           | David E. Jorden                                                       |                           | 1,625,000                                                                 | (2)                               | 6.1                                | %      |
|                                                                                                                                                                                                                                          |                           | 600 Travis, Suite 3700                                                |                           |                                                                      |                              |                               |   |
|                                                                                                                                                                                                                                          |                           | Houston, Texas  78746                                            |                           |                                                                      |                              |                               |   |

**Security Ownership      of      Management**

|                                   |                                |                                                                       |                                |                                                                              |                                   |                                        |        |
|-----------------------------------|--------------------------------|-----------------------------------------------------------------------|--------------------------------|------------------------------------------------------------------------------|-----------------------------------|----------------------------------------|--------|
| **Title                of Class** |                           | **Name                and Address ofBeneficial                Owner** |                           | **Amount                andNature ofBeneficial                Ownership(1)** |                              | **Percent                of Class(1)** |   |
|                              |                           |                                                                  |                           |                                                                         |                              |                                   |   |
| Common                Stock       |       | James S. Benson                                                       |       | 80,000                                                                       | (2)      | *                                      |   |
|                              |                           | 416 Hungerford Dr., Suite 330                                         |                           |                                                                         |                              |                                   |   |
|                              |                           | Rockville, MD  20850                                             |                           |                                                                         |                              |                                   |   |
|                              |                           |                                                                  |                           |                                                                         |                              |                                   |   |
| Common                Stock       |                           | David P. Crews                                                        |                           | 978,711                                                                      | (3)                               | 3.7                                    | %      |
|                              |                           | 521 President Clinton Ave.                                            |                           |                                                                         |                              |                                   |   |
|                              |                           | Little Rock, Arkansas  72201                                     |                           |                                                                         |                              |                                   |   |
|                              |                           |                                                                  |                           |                                                                         |                              |                                   |   |
| Common                Stock       |                           | Arun K. Deva                                                          |                           | 80,000                                                                       | (4)                               | *                                      |   |
|                              |                           | 416 Hungerford Dr., Suite 330                                         |                           |                                                                         |                              |                                   |   |
|                              |                           | Rockville, MD  20850                                             |                           |                                                                         |                              |                                   |   |
|                              |                           |                                                                  |                           |                                                                         |                              |                                   |   |
| Common                Stock       |                           | David F. Drohan                                                       |                           | 60,000                                                                       | (5)                               | *                                      |   |
|                              |                           | 416 Hungerford Dr., Suite 330                                         |                           |                                                                         |                              |                                   |   |
|                              |                           | Rockville, MD  20850                                             |                           |                                                                         |                              |                                   |   |
|                              |                           |                                                                  |                           |                                                                         |                              |                                   |   |
| Common                Stock       |                           | Carelyn P. Fylling                                                    |                           | 293,375                                                                      | (6)                               | 1.0                                    | %      |
|                              |                           | 10952 Steamboat Loop NW                                               |                           |                                                                         |                              |                                   |   |
|                              |                           | Walker, Minnesota  56484                                         |                           |                                                                         |                              |                                   |   |
|                              |                           |                                                                  |                           |                                                                         |                              |                                   |   |
| Common                Stock       |                           | Andrew S. Maslan                                                      |                           | 60,000                                                                       | (7)                               | *                                      |   |
|                              |                           | 416 Hungerford Dr., Suite 330                                         |                           |                                                                         |                              |                                   |   |
|                              |                           | Rockville, MD  20850                                             |                           |                                                                         |                              |                                   |   |
|                              |                           |                                                                  |                           |                                                                         |                              |                                   |   |

----

|                                     |        |                                                                                                                                                                                |        |                                                                              |        |                                        |        |
|-------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|----------------------------------------|--------|
| **Title                of Class**   |   | **Name                and Address ofBeneficial                Owner**                                                                                                          |   | **Amount                andNature ofBeneficial                Ownership(1)** |   | **Percent                of Class(1)** |   |
|                                |   |                                                                                                                                                                           |   |                                                                         |   |                                   |   |
| Common                Stock         |   | Mark T. McLoughlin                                                                                                                                                             |   | 80,000                                                                       | (8)    | *                                      |   |
|                                |   | 416 Hungerford Dr., Suite 330                                                                                                                                                  |   |                                                                         |   |                                   |   |
|                                |   | Rockville, MD  20850                                                                                                                                                      |   |                                                                         |   |                                   |   |
|                                |   |                                                                                                                                                                           |   |                                                                         |   |                                   |   |
| Common                Stock         |   | Kshitij Mohan                                                                                                                                                                  |   | 1,100,000                                                                    | (9)    | 4.0                                    | %      |
|                                |   | 416 Hungerford Dr., Suite 330                                                                                                                                                  |   |                                                                         |   |                                   |   |
|                                |   | Rockville, MD  20850                                                                                                                                                      |   |                                                                         |   |                                   |   |
|                                |   |                                                                                                                                                                           |   |                                                                         |   |                                   |   |
| Common                Stock         |   | Jimmy D. Swink, Jr.                                                                                                                                                            |   | 965,537                                                                      | (10)   | 3.6                                    | %      |
|                                |   | 10 Levant                                                                                                                                                                      |   |                                                                         |   |                                   |   |
|                                |   | Little Rock, Arkansas                                                                                                                                                          |   |                                                                         |   |                                   |   |
|                                |   |                                                                                                                                                                           |   |                                                                         |   |                                   |   |
| Series                B Convertible |   | Jimmy D. Swink, Jr.                                                                                                                                                            |   | 13,636                                                                       |   | 16.1                                   | %      |
| Preferred                Stock      |   | 10 Levant                                                                                                                                                                      |   |                                                                         |   |                                   |   |
|                                |   | Little Rock, Arkansas                                                                                                                                                          |   |                                                                         |   |                                   |   |
|                                |   |                                                                                                                                                                           |   |                                                                         |   |                                   |   |
| Common                Stock         |   | Group consisting of Jim Benson,David Crews,                Arun Deva,David Drohan, Carely Fylling,Andrew Maslan, Mark                McLoughlin,Kshitij Mohan, and Jimmy Swink |   | 3,697,623                                                                    |   | 12.7                                   | %      |

----

**Item 12. Certain      Relationships and Related Transactions**

**Item 13.      Exhibits**

**Item 14. Principal      Accountant Fees and Services**

|                                                                                                                                                                                                                                                                                                              |                                |          |         |                                |        |         |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|----------|---------|--------------------------------|--------|---------|
| **Services                Performed**                                                                                                                                                                                                                                                                        |                           | **2005** |    | **2004**                       |
|                                                                                                                                                                                                                                                                                                         |                           |     |    |                           |   |    |
| Audit                Fees(1)                                                                                                                                                                                                                                                                                 |       | $        | 200,000 |       | $      | 182,000 |
| Audit-Related                Fees(2)                                             |                           |     | 30,000  |                           |   | 33,000  |
| Tax                Fees(3)                                                                                                                                                                                                                                                                                   |                           |     | 15,000  |                           |   | 16,000  |
| All                Other Fees(4)                                                                                                                                                                                                                                                                             |                           |     | — |                           |   | — |
| Total                Fees                                                                                                                                                                                                                                                                                    |                           | $        | 245,000 |                           | $      | 231,000 |

----

**CYTOMEDIX,      INC.**

**TABLE      OF CONTENTS**

|                                                                        |                                |          |
|------------------------------------------------------------------------|--------------------------------|----------|
|                                                                   |                           | **Page** |
|                                                                   |                           |     |
| Report                of Independent Registered Public Accounting Firm |       | F-2      |
|                                                                   |                           |     |
| Balance                Sheets                                          |                           | F-3      |
|                                                                   |                           |     |
| Statements                of Operations                                |                           | F-4      |
|                                                                   |                           |     |
| Statements                of Shareholders’ Equity                |                           | F-5      |
|                                                                   |                           |     |
| Statements                of Cash Flows                                |                           | F-8      |
|                                                                   |                           |     |
| Notes                to Financial Statements                           |                           | F-9      |

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

----

**CYTOMEDIX,      INC.**

**BALANCE      SHEETS**

|                                                                                                                                                                                                                                                                                                     |                                |                                 |             |                                |        |             |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------|-------------|--------------------------------|--------|-------------|--------|
|                                                                                                                                                                                                                                                                                                |                           | **December                31,** |        |
|                                                                                                                                                                                                                                                                                                |                           | **2005**                        |        | **2004**                       |   |
|                                                                                                                                                                                                                                                                                                |                           |                            |        |                           |   |
| **ASSETS**                                                                                                                                                                                                                                                                                          |                           |                            |        |                           |   |
|                                                                                                                                                                                                                                                                                                |                           |                            |        |                           |   |
| Current                assets                                                                                                                                                                                                                                                                       |                           |                            |        |                           |   |
| Cash                                                                                                                                                                                                                                                                                                |       | $                               | 3,123,927   |       | $      | 3,274,934   |   |
| Accounts                and royalties receivable, net                                                                                                                                                                                                                                               |                           |                            | 445,729     |                           |   | 315,566     |   |
| Prepaid                expenses, other current assets and inventory                                                                                                                                                                                                                                 |                           |                            | 222,187     |                           |   | 274,045     |   |
|                                                                                                                                                                                                                                                                                                |                           |                            |        |                           |   |        |   |
| Total                current assets                                                                                                                                                                                                                                                                 |                           |                            | 3,791,843   |                           |   | 3,864,545   |   |
|                                                                                                                                                                                                                                                                                                |                           |                            |        |                           |   |        |   |
| Cash                – restricted                                                                                                                                                                                                                                                              |                           |                            | —     |                           |   | 21,375      |   |
| Note                receivable                                                                                                                                                                                                                                                                      |                           |                            | 31,962      |                           |   | —     |   |
| Property                and equipment, net                                                                                                                                                                                                                                                          |                           |                            | 74,594      |                           |   | 194,719     |   |
| Patents,                net                                                                                                                                                                                                                                                                         |                           |                            | 1,957,895   |                           |   | 2,084,210   |   |
| Goodwill                                                                                                                                                                                                                                                                                            |                           |                            | 2,021,623   |                           |   | 2,021,623   |   |
| Total                assets                                                                                                                                                                                                                                                                         |                           | $                               | 7,877,917   |                           | $      | 8,186,472   |   |
|                                                                                                                                                                                                                                                                                                |                           |                            |        |                           |   |        |   |
| **LIABILITIES                AND STOCKHOLDERS’EQUITY**                                                                                                                                                                                                                                        |                           |                            |        |                           |   |        |   |
|                                                                                                                                                                                                                                                                                                |                           |                            |        |                           |   |        |   |
| Current                liabilities                                                                                                                                                                                                                                                                  |                           |                            |        |                           |   |        |   |
| Accounts                payable and accrued expenses                                                                                                                                                                                                                                                |                           | $                               | 1,109,860   |                           | $      | 1,015,185   |   |
| Deferred                revenues                                                                                                                                                                                                                                                                    |                           |                            | 89,900      |                           |   | 81,448      |   |
| Dividends                payable on Series A, Series B and Series C preferred stock                                                                                                                                                                                                                 |                           |                            | 28,142      |                           |   | 199,891     |   |
| Total                current liabilities                                                                                                                                                                                                                                                            |                           |                            | 1,227,902   |                           |   | 1,296,524   |   |
|                                                                                                                                                                                                                                                                                                |                           |                            |        |                           |   |        |   |
| Deferred                revenues                                                                                                                                                                                                                                                                    |                           |                            | 263,745     |                           |   | 356,335     |   |
| Total                liabilities                                                                                                                                                                                                                                                                    |                           |                            | 1,491,647   |                           |   | 1,652,859   |   |
|                                                                                                                                                                                                                                                                                                |                           |                            |        |                           |   |        |   |
| Commitments                and contingencies                                                                                                                                                                                                                                                        |                           |                            |        |                           |   |        |   |
|                                                                                                                                                                                                                                                                                                |                           |                            |        |                           |   |        |   |
| Stockholders’                equity                                                                                                                                                                                                                                                           |                           |                            |        |                           |   |        |   |
| Series                A Convertible preferred stock; $.0001 par value, authorized 5,000,000                shares; 2005 issued – 347,856 shares, liquidation preference of $347,856;                2004 issued – 1,575,784 shares, liquidation preference of                $1,575,784 |                           |                            | 34          |                           |   | 157         |   |
| Series                B Convertible preferred stock; $.0001 par value, authorized 5,000,000                shares; 2005 issued – 84,604 shares, liquidation preference of                $84,604;2004 issued – 1,387,042 shares, liquidation preference of                $1,387,042    |                           |                            | 8           |                           |   | 138         |   |
| Series                C Convertible preferred stock: $.0001 par value, authorized 1,000                shares;                2005 issued – 0.0 shares; 2004 issued – 83.9 shares, liquidation                preference of $839,000                                                    |                           |                            | —     |                           |   | —     |   |
| Common                stock; $.0001 par value, authorized 65,000,000 shares; 2005 issued–                26,158,778 shares; 2004 issued – 20,675,837, issuable – 825,000                shares                                                                                    |                           |                            | 2,617       |                           |   | 2,151       |   |
| Additional                paid-in capital                                                                                                                                                                                                                                                           |                           |                            | 30,954,333  |                           |   | 25,674,088  |   |
| Deferred                compensation                                                                                                                                                                                                                                                                |                           |                            | (238,801    | )                              |   | (567,788    | )      |
| Subscriptions                receivable                                                                                                                                                                                                                                                             |                           |                            | —     |                           |   | (831,599    | )      |
| Accumulated                deficit                                                                                                                                                                                                                                                                  |                           |                            | (24,331,921 | )                              |   | (17,743,534 | )      |
| Total                stockholders’                equity                                                                                                                                                                                                                                      |                           |                            | 6,386,270   |                           |   | 6,533,613   |   |
| Total                liabilities and stockholders’ equity                                                                                                                                                                                                                                     |                           | $                               | 7,877,917   |                           | $      | 8,186,472   |   |

----

**CYTOMEDIX,      INC.**

**STATEMENTS      OF OPERATIONS**

|                                                                                                                                                                                                                |                                |                                            |                                |          |        |             |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------|--------------------------------|----------|--------|-------------|--------|
|                                                                                                                                                                                                           |                           | **Year                Ended December 31,** |                           |
|                                                                                                                                                                                                           |                           | **2005**                                   |                           | **2004** |   |
|                                                                                                                                                                                                           |                           |                                       |                           |     |   |
| Revenues                                                                                                                                                                                                       |       |                                       |       |     |   |
| Sales                                                                                                                                                                                                          |                           | $                                          | 266,876                        |     | $      | 444,932     |   |
| Royalties                                                                                                                                                                                                      |                           |                                       | 1,247,549                      |     |   | 700,659     |   |
| Total                revenues                                                                                                                                                                                  |                           |                                       | 1,514,425                      |     |   | 1,145,591   |   |
|                                                                                                                                                                                                           |                           |                                       |                           |     |   |        |   |
| Cost                of revenues                                                                                                                                                                                |                           |                                       |                           |     |   |        |   |
| Cost                of sales                                                                                                                                                                                   |                           |                                       | 115,956                        |     |   | 140,247     |   |
| Cost                of royalties                                                                                                                                                                               |                           |                                       | 765,368                        |     |   | 571,580     |   |
| Total                cost of                revenues                                                                                                                                                           |                           |                                       | 881,324                        |     |   | 711,827     |   |
| Gross                profit                                                                                                                                                                                    |                           |                                       | 633,101                        |     |   | 433,764     |   |
|                                                                                                                                                                                                           |                           |                                       |                           |     |   |        |   |
| Operating                expenses                                                                                                                                                                              |                           |                                       |                           |     |   |        |   |
| Salaries                and wages                                                                                                                                                                              |                           |                                       | 2,970,036                      |     |   | 1,769,170   |   |
| Consulting                expenses                                                                                                                                                                             |                           |                                       | 768,116                        |     |   | 2,440,901   |   |
| Consulting                expenses – related                party                                                                                                                                        |                           |                                       | 185,764                        |     |   | 789,189     |   |
| Professional                fees                                                                                                                                                                               |                           |                                       | 1,018,779                      |     |   | 867,928     |   |
| Royalty                expenses – related                party                                                                                                                                           |                           |                                       | 75,000                         |     |   | 75,000      |   |
| Clinical                trial related                expenses                                                                                                                                                  |                           |                                       | 1,588,916                      |     |   | 1,385,120   |   |
| General                and administrative                expenses                                                                                                                                              |                           |                                       | 1,472,624                      |     |   | 1,294,816   |   |
| Total                operating                expenses                                                                                                                                                         |                           |                                       | 8,079,235                      |     |   | 8,622,124   |   |
| Loss                from operations                                                                                                                                                                            |                           |                                       | (7,446,134                     | )        |   | (8,188,360  | )      |
|                                                                                                                                                                                                           |                           |                                       |                           |     |   |        |   |
| Other                (income)                expenses                                                                                                                                                          |                           |                                       |                           |     |   |        |   |
| Interest                (income) expenses,                net                                                                                                                                                  |                           |                                       | (101,564                       | )        |   | (54,049     | )      |
| Contract                settlement and other (gain)                expense                       |                           |                                       | 206,159                        |     |   | 5,015       |   |
| Patent                litigation settlements,                net                                                                                                                                               |                           |                                       | (1,047,244                     | )        |   | —     |   |
| Total                other (income)                expenses                                                                                                                                                    |                           |                                       | (942,649                       | )        |   | (49,034     | )      |
| Net                loss                                                                                                                                                                                        |                           |                                       | (6,503,485                     | )        |   | (8,139,326  | )      |
|                                                                                                                                                                                                           |                           |                                       |                           |     |   |        |   |
| Preferred                dividend                on:                                                                                                                                                           |                           |                                       |                           |     |   |        |   |
| Series                A preferred                stock                                                                                                                                                         |                           |                                       | 43,769                         |     |   | 122,740     |   |
| Series                B preferred                stock                                                                                                                                                         |                           |                                       | 18,882                         |     |   | 117,926     |   |
| Series                C preferred                stock                                                                                                                                                         |                           |                                       | 22,251                         |     |   | 2,879,195   |   |
| Net                loss to common                stockholders                                                                                                                                                  |                           | $                                          | (6,588,387                     | )        | $      | (11,259,187 | )      |
|                                                                                                                                                                                                           |                           |                                       |                           |     |   |        |   |
| Basic                and diluted loss per common                share                                                                                                                                          |                           | $                                          | (0.27                          | )        | $      | (0.62       | )      |
| Weighted                average shares                outstanding                                                                                                                                              |                           |                                       | 24,428,653                     |     |   | 18,085,769  |   |

----

**CYTOMEDIX,      INC.**

**STATEMENTS      OF STOCKHOLDERS’ EQUITY**

|                                                                                                                                                             |        |                                 |            |                                      |            |                                      |           |                                      |            |                              |            |                          |        |                             |         |                                                                 |         |                             |        |         |        |        |            |        |        |            |         |        |            |        |        |            |         |        |           |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|------------|--------------------------------------|------------|--------------------------------------|-----------|--------------------------------------|------------|------------------------------|------------|--------------------------|--------|-----------------------------|---------|-----------------------------------------------------------------|---------|-----------------------------|--------|---------|--------|--------|------------|--------|--------|------------|---------|--------|------------|--------|--------|------------|---------|--------|-----------|--------|
|                                                                                                                                                        |   | **Common                Stock** |       | **Series                APreferred** |       | **Series                BPreferred** |      | **Series                CPreferred** |       | **AdditionalPaid-inCapital** |       | **DeferredCompensation** |   | **SubscriptionsReceivable** |    | **DeficitAccumulatedDuring                theDevelopmentStage** |    | **TotalStockholdersEquity** |   |
| **Shares**                                                                                                                                                  |   | **Amount**                      | **Shares** |                                 | **Amount** | **Shares**                           |      | **Amount**                           | **Shares** |                         | **Amount** |
|                                                                                                                                                        |   |                            |       |                                 |       |                                 |      |                                 |       |                         |       |                     |   |                        |    |                                                            |    |                        |   |    |   |   |       |   |   |       |    |   |       |   |   |       |    |   |      |   |
| **Balance                at December 31, 2003**                                                                                                             |   | 13,211,453                      |       | $                                    | 1,323      |                                 | 1,475,471 |                                 | $          | 147                          |       | 1,514,862                |   | $                           | 151     |                                                            | — |                        | $      | — |   | $      | 12,378,878 |   | $      | (1,438,070 | )  | $      | —    |   | $      | (6,484,347 | )  | $      | 4,458,082 |   |
| Private                placement of 4,500,000 common shares with warrants, net of direct                commissions and expenses                            |   | 4,500,000                       |       |                                 | 450        |                                 | —   |                                 |       | —                      |       | —                  |   |                        | — |                                                            | — |                        |   | — |   |   | 4,011,175  |   |   | —    |    |   | (2,312,500 | )      |   | —    |    |   | 1,699,125 |   |
| Private                placement of 280 shares of Series C Convertible Preferred stock with                warrants, net of direct commissions and expenses |   | —                         |       |                                 | —    |                                 | —   |                                 |       | —                      |       | —                  |   |                        | — |                                                            | 280     |                        |   | — |   |   | 2,474,193  |   |   | —    |    |   | —    |   |   | —    |    |   | 2,474,193 |   |
| Beneficial                conversion feature recorded as a preferred stock dividend related                to the                Series C stock             |   | —                         |       |                                 | —    |                                 | —   |                                 |       | —                      |       | —                  |   |                        | — |                                                            | — |                        |   | — |   |   | 2,800,000  |   |   | —    |    |   | —    |   |   | —    |    |   | 2,800,000 |   |
| Receipt                of subscriptions                                                                                                                     |   | —                         |       |                                 | —    |                                 | —   |                                 |       | —                      |       | —                  |   |                        | — |                                                            | — |                        |   | — |   |   | —    |   |   | —    |    |   | 1,501,908  |   |   | —    |    |   | 1,501,908 |   |
| Interest                earned on subscriptions                                                                                                             |   | —                         |       |                                 | —    |                                 | —   |                                 |       | —                      |       | —                  |   |                        | — |                                                            | — |                        |   | — |   |   | —    |   |   | —    |    |   | (21,007    | )      |   | —    |    |   | (21,007   | )      |
| Common                stock issued upon conversion of Series A stock                                                                                        |   | 5,999                           |       |                                 | 1          |                                 | (17,999   | )                                    |       | (2                           | )          | —                  |   |                        | — |                                                            | — |                        |   | — |   |   | 1          |   |   | —    |    |   | —    |   |   | —    |    |   | —   |   |
| Common                stock issued upon conversion of Series B stock                                                                                        |   | 88,736                          |       |                                 | 9          |                                 | —   |                                 |       | —                      |       | (250,212                 | )      |                        | (25     | )                                                               | — |                        |   | — |   |   | 16         |   |   | —    |    |   | —    |   |   | —    |    |   | —   |   |
| Common                stock issued upon conversion of Series C stock                                                                                        |   | 1,960,500                       |       |                                 | 196        |                                 | —   |                                 |       | —                      |       | —                  |   |                        | — |                                                            | (196    | )                           |   | — |   |   | —    |   |   | —    |    |   | —    |   |   | —    |    |   | 196       |   |
| Dividend                issued on Series A and Series B stock                                                                                               |   | —                         |       |                                 | —    |                                 | 118,312   |                                 |       | 12                           |       | 122,392                  |   |                        | 12      |                                                            | — |                        |   | — |   |   | 240,679    |   |   | —    |    |   | —    |   |   | —    |    |   | 240,703   |   |
| Common                stock issued upon exercise of Class A warrants                                                                                        |   | 659,418                         |       |                                 | 66         |                                 | —   |                                 |       | —                      |       | —                  |   |                        | — |                                                            | — |                        |   | — |   |   | 659,352    |   |   | —    |    |   | —    |   |   | —    |    |   | 659,418   |   |
| Common                stock issued upon cashless exercise of 268,945 Class A warrants                                                                       |   | 93,500                          |       |                                 | 9          |                                 | —   |                                 |       | —                      |       | —                  |   |                        | — |                                                            | — |                        |   | — |   |   | (9         | )      |   | —    |    |   | —    |   |   | —    |    |   | —   |   |
| Common                stock issued upon exercise of Class B warrants                                                                                        |   | 51,898                          |       |                                 | 5          |                                 | —   |                                 |       | —                      |       | —                  |   |                        | — |                                                            | — |                        |   | — |   |   | 77,842     |   |   | —    |    |   | —    |   |   | —    |    |   | 77,847    |   |
| Common                stock issued upon exercise of Class C-1 warrants                                                                                      |   | 99,500                          |       |                                 | 10         |                                 | —   |                                 |       | —                      |       | —                  |   |                        | — |                                                            | — |                        |   | — |   |   | 149,240    |   |   | —    |    |   | —    |   |   | —    |    |   | 149,250   |   |
| Common                stock issued upon exercise of Class C-2 warrants                                                                                      |   | 85,000                          |       |                                 | 8          |                                 | —   |                                 |       | —                      |       | —                  |   |                        | — |                                                            | — |                        |   | — |   |   | 127,491    |   |   | —    |    |   | —    |   |   | —    |    |   | 127,499   |   |
| Common                stock issued upon exercise of employee stock options                                                                                  |   | 55,000                          |       |                                 | 5          |                                 | —   |                                 |       | —                      |       | —                  |   |                        | — |                                                            | — |                        |   | — |   |   | 82,495     |   |   | —    |    |   | —    |   |   | —    |    |   | 82,500    |   |
| Common                stock issued upon exercise of other warrants                                                                                          |   | 500,000                         |       |                                 | 50         |                                 | —   |                                 |       | —                      |       | —                  |   |                        | — |                                                            | — |                        |   | — |   |   | 524,950    |   |   | —    |    |   | —    |   |   | —    |    |   | 525,000   |   |
| Common                stock issued upon exercise of Series C placement warrants                                                                             |   | 17,455                          |       |                                 | 2          |                                 | —   |                                 |       | —                      |       | —                  |   |                        | — |                                                            | — |                        |   | — |   |   | 17,453     |   |   | —    |    |   | —    |   |   | —    |    |   | 17,455    |   |

----

**CYTOMEDIX,      INC.**

**STATEMENTS      OF STOCKHOLDERS’ EQUITY –(continued)**

|                                                                                                                                                              |        |                                 |              |                                      |                                             |                                      |            |                                       |            |                                       |               |                          |        |                             |                                             |                                                                 |                                             |                             |        |                                             |              |        |            |         |        |                                                                     |        |        |                                                         |              |        |             |        |        |                                                                     |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------------|--------------------------------------|---------------------------------------------|--------------------------------------|------------|---------------------------------------|------------|---------------------------------------|---------------|--------------------------|--------|-----------------------------|---------------------------------------------|-----------------------------------------------------------------|---------------------------------------------|-----------------------------|--------|---------------------------------------------|--------------|--------|------------|---------|--------|---------------------------------------------------------------------|--------|--------|---------------------------------------------------------|--------------|--------|-------------|--------|--------|---------------------------------------------------------------------|--------|
|                                                                                                                                                         |   | **Common                Stock** |         | **Series                APreferred** |                                        | **Series                BPreferred** |       | **Series                C Preferred** |       | **AdditionalPaid-inCapital**          |          | **DeferredCompensation** |   | **SubscriptionsReceivable** |                                        | **DeficitAccumulatedDuring                theDevelopmentStage** |                                        | **TotalStockholdersEquity** |   |
| **Shares**                                                                                                                                                   |   | **Amount**                      | **Shares**   |                                 | **Amount**                                  | **Shares**                           |       | **Amount**                            | **Shares** |                                  | **Amount**    |
| Common                stock issued upon cashless exercise of 292,397 Series C placement                and                consulting warrants                |   | 160,078                         |         |                                 |     16                  |                                 | —    |                                  |       |    —             |          | —                  |   |                        |     —             |                                                            |     —             |                        |   |    —                   |         |   | (21        | )  |   | —                                                             |   |   | —                                                 |         |   | —     |   |   | (5                                                                  | )      |
| Common                stock issued in lieu of cash for commissions earned in private                placement                                                |   | 12,300                          |         |                                 | 1                                           |                                 | —    |                                  |       | —                               |          | —                  |   |                        | —                                     |                                                            | —                                     |                        |   | —                                     |         |   | 15,374     |    |   | —                                                             |   |   | —                                                 |         |   | —     |   |   | 15,375                                                              |   |
| Record                other legal and accounting expenses associated with the private                placements                                              |   | —                         |         |                                 | —                                     |                                 | —    |                                  |       | —                               |          | —                  |   |                        | —                                     |                                                            | —                                     |                        |   | —                                     |         |   | (67,234    | )       |   | —                                                             |   |   | —                                                 |         |   | —     |   |   | (67,234                                                             | )      |
| Options                issued and issuable to Dr. Kshitij Mohan per his employment agreement                dated April 20, 2004                             |   | —                         |         |                                 | —                                     |                                 | —    |                                  |       | —                               |          | —                  |   |                        | —                                     |                                                            | —                                     |                        |   | —                                     |         |   | 740,000    |    |   |    (740,000                                          | )      |   | —                                                 |         |   | —     |   |   | —                                                             |   |
| Revaluation                of options issued to BDR, Inc. in connection with consulting services                agreement                                    |   | —                         |         |                                 | —                                     |                                 | —    |                                  |       | —                               |          | —                  |   |                        | —                                     |                                                            | —                                     |                        |   | —                                     |         |   | 244,459    |    |   | (244,459                                                            | )      |   | —                                                 |         |   | —     |   |   | —                                                             |   |
| Warrants                issued in connection with a general business consulting contract                with                Nadine C. Smith dated April 2003 |   | —                         |         |                                 | —                                     |                                 | —    |                                  |       | —                               |          | —                  |   |                        | —                                     |                                                            | —                                     |                        |   | —                                     |         |   | 647,300    |    |   | (647,300                                                            | )      |   | —                                                 |         |   | —     |   |   | —                                                             |   |
| Options                issued and issuable to Carmen Group in connection with a services                contract                dated October 1, 2003        |   | —                         |         |                                 | —                                     |                                 | —    |                                  |       | —                               |          | —                  |   |                        | —                                     |                                                            | —                                     |                        |   | —                                     |         |   | 84,440     |    |   | (84,440                                                             | )      |   | —                                                 |         |   | —     |   |   | —                                                             |   |
| Warrants                issued to Burnham-Hill in March 2004                                                                                                 |   | —                         |         |                                 | —                                     |                                 | —    |                                  |       | —                               |          | —                  |   |                        | —                                     |                                                            | —                                     |                        |   | —                                     |         |   | 111,430    |    |   | (111,430                                                            | )      |   | —                                                 |         |   | —     |   |   | —                                                             |   |
| Termination                options issued to Mark E. Cline and Nadine C. Smith                                                                               |   | —                         |         |                                 | —                                     |                                 | —    |                                  |       | —                               |          | —                  |   |                        | —                                     |                                                            | —                                     |                        |   | —                                     |         |   | 319,938    |    |   | (319,938                                                            | )      |   | —                                                 |         |   | —     |   |   | —                                                             |   |
| Other                options issued                                                                                                                          |   | —                         |         |                                 | —                                     |                                 | —    |                                  |       | —                               |          | —                  |   |                        | —                                     |                                                            | —                                     |                        |   | —                                     |         |   | 34,646     |    |   | (34,646                                                             | )      |   | —                                                 |         |   | —     |   |   | —                                                             |   |
| Amortization                of deferred compensation related to options and warrants issued for                services rendered by –                  |   |                            |         |                                 |                                        |                                 |       |                                  |       |                                  |          |                     |   |                        |                                        |                                                            |                                        |                        |   |                                        |         |   |       |    |   |                                                                |   |   |                                                    |         |   |        |   |   |                                                                |   |
| Related                parties                                                                                                                               |   | —                         |         |                                 | —                                     |                                 | —    |                                  |       | —                               |          | —                  |   |                        | —                                     |                                                            | —                                     |                        |   | —                                     |         |   | —    |    |   | 787,550                                                             |   |   | —                                                 |         |   | —     |   |   | 787,550                                                             |   |
| Terminated                parties                                                                                                                            |   | —                         |         |                                 | —                                     |                                 | —    |                                  |       | —                               |          | —                  |   |                        | —                                     |                                                            | —                                     |                        |   | —                                     |         |   | —    |    |   | 319,938                                                             |   |   | —                                                 |         |   | —     |   |   | 319,938                                                             |   |
| Other                parties                                                                                                                                 |   | —                         |         |                                 | —                                     |                                 | —    |                                  |       | —                               |          | —                  |   |                        | —                                     |                                                            | —                                     |                        |   | —                                     |         |   | —    |    |   |    1,945,007                                         |   |   | —                                                 |         |   | —     |   |   | 1,945,007                                                           |   |
| Net                loss                                                                                                                                      |   | —                         |         |                                 | —                                     |                                 | —    |                                  |       | —                               |          | —                  |   |                        | —                                     |                                                            | —                                     |                        |   | —                                     |         |   | —    |    |   | —                                                             |   |   | —                                                 |         |   | (11,259,187 | )      |   | (11,259,187                                                         | )      |
| **Balance                at December 31, 2004**                                                                                                              |   | 21,500,837                      |         | $                                    | 2,151                                       |                                 | 1,575,784  |                                  | $          | 157                                   |          | 1,387,042                |   | $                           | 138                                         |                                                            | 84                                          |                        | $      | —                                     |         | $      | 25,674,088 |    | $      | (567,788                                                            | )      | $      |    (831,599                              | )            | $      | (17,743,534 | )      | $      | 6,533,613                                                           |   |
| Receipt                of subscriptions                                                                                                                      |   | —                         |         |                                 |       — |                                 | —    |                                  |       |      — |          | —                  |   |                        |       — |                                                            |    —                   |                        |   |       — |         |   | —    |    |   |           — |   |   |     832,465                         |         |   | —     |   |   |     832,465                                     |   |
| Interest                earned on subscriptions                                                                                                              |   | —                         |         |                                 | —                                     |                                 | —    |                                  |       | —                               |          | —                  |   |                        | —                                     |                                                            | —                                     |                        |   | —                                     |         |   | —    |    |   | —                                                             |   |   | (866                                                    | )            |   | —     |   |   | (866                                                                | )      |
| Common                stock issued upon conversion of Series A stock                                                                                         |   | 418,219                         |    |                                 |   42                              |                            | (1,253,046 | )                                |       |    (125                | )   | —                  |   |                        |    —                   |                                                            |       — |                        |   |    —                   |    |   | 83         |    |   |          —       |   |   |         — |    |   | —     |   |   |           — |   |

----

**CYTOMEDIX,      INC.**

**STATEMENTS      OF STOCKHOLDERS’ EQUITY –(continued)**

|                                                                                                                                                         |        |                                 |        |                                      |                                        |                                      |            |                                       |            |                                             |        |                          |         |                             |                           |                                                                 |                                             |                             |        |                                             |        |        |            |         |        |                                                                                                   |         |        |                                                                                             |        |        |             |         |        |                                                                                 |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|--------------------------------------|----------------------------------------|--------------------------------------|------------|---------------------------------------|------------|---------------------------------------------|--------|--------------------------|---------|-----------------------------|---------------------------|-----------------------------------------------------------------|---------------------------------------------|-----------------------------|--------|---------------------------------------------|--------|--------|------------|---------|--------|---------------------------------------------------------------------------------------------------|---------|--------|---------------------------------------------------------------------------------------------|--------|--------|-------------|---------|--------|---------------------------------------------------------------------------------|--------|
|                                                                                                                                                    |   | **Common                Stock** |   | **Series                APreferred** |                                   | **Series                BPreferred** |       | **Series                C Preferred** |       | **AdditionalPaid-inCapital**                |   | **DeferredCompensation** |    | **SubscriptionsReceivable** |                      | **DeficitAccumulatedDuring                theDevelopmentStage** |                                        | **TotalStockholdersEquity** |   |
| **Shares**                                                                                                                                              |   | **Amount**                      |   | **Shares**                           |                                   | **Amount**                           | **Shares** |                                  | **Amount** | **Shares**                                  |   | **Amount**               |
| Common                stock issued upon conversion of Series B stock                                                                                    |   | 435,380                         |   |                                 |       44 |                                 | —    |                                  |       |       — |   | (1,308,773               | )  |                        |    (131    | )                                                          |       — |                        |   |       — |   |   | 87         |    |   |                — |    |   |               — |   |   | —     |    |   |             — |   |
| Common                stock issued upon conversion of Series C stock                                                                                    |   | 839,500                         |   |                                 | 84                                     |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | (84                                         | )                      |   | —                                     |   |   | (84        | )  |   | —                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | —                                                                         |   |
| Dividend                issued on Series A and Series B stock (paid in Common stock on those                preferred shares converted during the year) |   | 27,871                          |   |                                 | 3                                      |                                 | 25,118     |                                  |       | 2                                           |   | 6,335                    |    |                        | 1                         |                                                            | —                                     |                        |   | —                                     |   |   | 166,061    |    |   | —                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | 166,067                                                                         |   |
| Common                stock issued upon exercise of Class A warrants                                                                                    |   | 42,500                          |   |                                 | 4                                      |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | 42,496     |    |   | —                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | 42,500                                                                          |   |
| Common                stock issued upon exercise of Class B warrants                                                                                    |   | 449,233                         |   |                                 | 45                                     |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | 673,805    |    |   | —                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | 673,850                                                                         |   |
| Common                stock issued upon cashless exercise of 94,171 Class B warrants                                                                    |   | 57,775                          |   |                                 | 6                                      |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | (6         | )       |   | —                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | —                                                                         |   |
| Common                stock issued upon exercise of Class C-1 warrants                                                                                  |   | 462,900                         |   |                                 | 46                                     |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | 694,304    |    |   | —                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | 694,350                                                                         |   |
| Common                stock issued upon exercise of Class C-2 warrants                                                                                  |   | 478,700                         |   |                                 | 48                                     |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | 718,002    |    |   | —                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | 718,050                                                                         |   |
| Common                stock issued upon exercise of Long-Term Incentive Plan options                                                                    |   | 252,000                         |   |                                 | 25                                     |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | 367,475    |    |   | —                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | 367,500                                                                         |   |
| Common                stock issued upon exercise of other warrants                                                                                      |   | 450,000                         |   |                                 | 45                                     |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | 699,955    |    |   | —                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | 700,000                                                                         |   |
| Common                stock issued upon cashless exercise of 925,000 other warrants                                                                     |   | 647,288                         |   |                                 | 65                                     |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | (65        | )       |   | —                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | —                                                                         |   |
| Common                stock issued upon exercise of Series C placement warrants                                                                         |   | 2,975                           |   |                                 | —                                |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | 2,975      |    |   | —                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | 2,975                                                                           |   |
| Common                stock issued upon cashless exercise of 33,732 Series C placement                and                consulting warrants            |   | 19,927                          |   |                                 | 2                                      |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | (2         | )       |   | —                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | —                                                                         |   |
| Common                stock issued for settlement of bankruptcy-related lawsuit                                                                         |   | 65,000                          |   |                                 | 6                                      |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | 227,494    |    |   | —                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | 227,500                                                                         |   |
| Common                stock issued in lieu of cash for fees earned by executive                recruiters                                               |   | 8,673                           |   |                                 | 1                                      |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | 34,999     |    |   | —                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | 35,000                                                                          |   |
| Options                granted under the Long-Term Incentive Plan to Management, Board of                Directors, and Advisors                        |   | —                         |   |                                 | —                                |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | 377,669    |    |   | (377,669                                                                                          | )       |   | —                                                                                     |   |   | —     |    |   | —                                                                         |   |
| Revaluation                of options issued to William Allender in connection with severance                agreement                                  |   | —                         |   |                                 | —                                |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | 798,262    |    |   | (798,262                                                                                          | )       |   | —                                                                                     |   |   | —     |    |   | —                                                                         |   |
| Warrants                granted to consultants                                                                                                          |   | —                         |   |                                 |     —        |                                 | —    |                                  |       |    —                   |   | —                  |    |                        |    — |                                                            |    —                   |                        |   |   —                         |   |   | 476,735    |    |   |   (476,735                                                                              | )       |   |            —                   |   |   | —     |    |   |          —                   |   |
| Amortization                of deferred compensation related to options and warrants issued for                services rendered by –             |   |                            |   |                                 |                                   |                                 |       |                                  |       |                                        |   |                     |    |                        |                      |                                                            |                                        |                        |   |                                        |   |   |       |    |   |                                                                                              |    |   |                                                                                        |   |   |        |    |   |                                                                            |   |
| Related                parties                                                                                                                          |   | —                         |   |                                 | —                                |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | —    |    |   | 1,615,533                                                                                         |    |   | —                                                                                     |   |   | —     |    |   | 1,615,533                                                                       |   |
| Other                parties                                                                                                                            |   | —                         |   |                                 | —                                |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | —    |    |   | 366,120                                                                                           |    |   | —                                                                                     |   |   | —     |    |   | 366,120                                                                         |   |
| Net                loss                                                                                                                                 |   | —                         |   |                                 | —                                |                                 | —    |                                  |       | —                                     |   | —                  |    |                        | —                   |                                                            | —                                     |                        |   | —                                     |   |   | —    |    |   | —                                                                                           |    |   | —                                                                                     |   |   | (6,588,387  | )  |   | (6,588,387                                                                      |   |
| **Balance                at December 31, 2005**                                                                                                         |   | 26,158,778                      |   | $                                    | 2,617                                  |                                 | 347,856    |                                  | $          | 34                                          |   | 84,604                   |    | $                           | 8                         |                                                            | —                                     |                        | $      | —                                     |   | $      | 30,954,333 |    | $      | (238,801                                                                                          | )  | $      | —                                                                                     |   | $      | (24,331,921 | )       | $      | 6,386,270                                                                       |   |

----

**CYTOMEDIX,      INC.**

**STATEMENTS      OF CASH FLOWS**

|                                                                                                           |                                      |                                            |            |                                 |        |            |        |
|-----------------------------------------------------------------------------------------------------------|--------------------------------------|--------------------------------------------|------------|---------------------------------|--------|------------|--------|
|                                                                                                      |                                 | **Year                Ended December 31,** |       |
|                                                                                                      |                                 | **2005**                                   |       | **2004**                        |   |
|                                                                                                      |                                 |                                       |       |                            |   |
| Cash                flows from operating activities                                                       |                                 |                                       |       |                            |   |
| Net                loss                                                                                   |        | $                                          | (6,503,485 | )      | $      | (8,139,326 | )      |
| Adjustments                to reconcile net loss to net cash used in operating                activities: |                                 |                                       |       |                            |   |       |   |
| Depreciation                and amortization                                                              |                                 |                                       | 224,274    |                            |   | 218,954    |   |
| Amortization                – deferred consulting fees                                              |                                 |                                       | 455,565    |                            |   | 2,474,003  |   |
| Amortization                – stock based employee and director compensation                        |                                 |                                       | 1,526,088  |                            |   | 578,492    |   |
| Amortization                of stock issued for services                                                  |                                 |                                       | —    |                            |   | 44,761     |   |
| Stock                issued for contract settlement                                                       |                                 |                                       | 227,500    |                            |   | —    |   |
| Stock                issued for consulting services                                                       |                                 |                                       | 35,000     |                            |   | —    |   |
| (Gain)                Loss on disposal of assets                                                          |                                 |                                       | (16,609    | )                               |   | 4,655      |   |
| Interest                earned on stock subscriptions outstanding                                         |                                 |                                       | (866       | )                               |   | (21,008    | )      |
| Change                in current assets                                                                   |                                 |                                       | (78,305    | )                               |   | (193,210   | )      |
| Change                in note receivable                                                                  |                                 |                                       | (31,962    | )                               |   | —    |   |
| Change                in accounts payable and accrued expenses                                            |                                 |                                       | 94,678     |                            |   | 400,752    |   |
| Change                in deferred revenues                                                                |                                 |                                       | (84,138    | )                               |   | (81,448    | )      |
| Net                cash used in operating activities                                                      |                                 |                                       | (4,152,260 | )                               |   | (4,713,375 | )      |
|                                                                                                      |                                 |                                       |       |                            |   |       |   |
| Cash                flows from investing activities                                                       |                                 |                                       |       |                            |   |       |   |
| Purchase                of equipment                                                                      |                                 |                                       | —    |                            |   | (56,563    | )      |
| Proceeds                from sale of equipment                                                            |                                 |                                       | 38,775     |                            |   | —    |   |
| (Increase)                Decrease in restricted cash                                                     |                                 |                                       | 21,375     |                            |   | (600       | )      |
| Net                cash provided by (used in) investing activities                                        |                                 |                                       | 60,150     |                            |   | (57,163    | )      |
|                                                                                                      |                                 |                                       |       |                            |   |       |   |
| Cash                flows from financing activities                                                       |                                 |                                       |       |                            |   |       |   |
| Proceeds                from sale of common and preferred stock, net                                      |                                 |                                       | 832,465    |                            |   | 5,608,188  |   |
| Repayment                of note payable                                                                  |                                 |                                       | —    |                            |   | (13,066    | )      |
| Proceeds                from option and warrant exercises                                                 |                                 |                                       | 3,199,227  |                            |   | 1,638,965  |   |
| Dividends                paid                                                                             |                                 |                                       | (90,589    | )                               |   | —    |   |
| Net                cash provided by financing activities                                                  |                                 |                                       | 3,941,103  |                            |   | 7,234,087  |   |
|                                                                                                      |                                 |                                       |       |                            |   |       |   |
| Net                increase in cash                                                                       |                                 |                                       | (151,007   | )                               |   | 2,463,549  |   |
| Cash,                beginning of period                                                                  |                                 |                                       | 3,274,934  |                            |   | 811,385    |   |
| Cash,                end of period                                                                        |                                 | $                                          | 3,123,927  |                            | $      | 3,274,934  |   |

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 1 — Description      of the Business**

**Note 2 — Summary      of Significant Accounting      Policies**

***Basis of      Presentation***

***Use of      Estimates***

***Concentration      of      Risk***

***Concentration      of      Products***

***Cash      Equivalents***

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 2 — Summary of      Significant Accounting Policies – (continued)**

***Accounts and      Royalties Receivable***

***Inventory***

***Property and      Equipment***

***Intangible      Assets***

***Income      Taxes***

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 2 — Summary of      Significant Accounting Policies – (continued)**

***Revenue      Recognition***

***Stock-Based      Compensation Arrangements and Deferred Compensation***

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 2 — Summary of      Significant Accounting Policies – (continued)**

***Loss Per      Share***

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                    |            |                                    |            |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|------------|------------------------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                               | **2005**   |                               | **2004**   |
| **                                                                                 ** | **     ** |       | **     ** |       |
| Options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               | 2,782,077  |                               | 2,516,577  |
| Warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                               | 8,528,988  |                               | 11,253,200 |
| Series                A Preferred Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               | 115,580    |                               | 525,261    |
| Series                B Preferred Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               | 28,458     |                               | 462,347    |
| Series                C Preferred Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               | —    |                               | 839,000    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                               | 11,455,103 |                               | 15,596,385 |

***SFAS 148      Disclosure***

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                    |          |            |        |                                    |        |             |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|----------|------------|--------|------------------------------------|--------|-------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | **2005** |       |   | **2004**                           |   |
| **                                                                                                                                                        ** | **     ** |     |       |   | **     ** |   |        |   |
| Net                loss to common stockholders, as reported                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               | $        | (6,588,387 | )      |                               | $      | (11,259,187 | )      |
| Add:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               |     |       |   |                               |   |        |   |
| Stock-based                employee compensation expenseincluded in reported net loss determined                under APB No. 25, net of related tax effects                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                               |     | 698,380    |   |                               |   | 258,464     |   |
| Deduct:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               |     |       |   |                               |   |        |   |
| Stock-based                employee compensation expense determined under fair value based method                for all awards, net of related tax effects                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |     | (2,139,046 | )      |                               |   | (793,792    | )      |
| Pro                forma net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               | $        | (8,029,053 | )      |                               | $      | (11,794,515 | )      |
| Loss                per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                               |     |       |   |                               |   |        |   |
| Basic                and diluted – as reported                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | $        | (0.27      | )      |                               | $      | (0.62       | )      |
| Basic                and diluted – pro forma                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                               | $        | (0.33      | )      |                               | $      | (0.65       | )      |

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 2 — Summary of      Significant Accounting Policies – (continued)**

|                                                                                                                                                                                                                                                             |                                |          |                                |          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|----------|--------------------------------|----------|
|                                                                                                                                                                                                                                                        |                           | **2005** |                           | **2004** |
|                                                                                                                                                                                                                                                        |                           |     |                           |     |
| Risk                free rate                                                                                                                                                                                                                               |       | 4.40%    |       | 3.90%    |
| Expected                years until                exercise                                 |                           | 8.1      |                           | 9.3      |
| Expected                stock volatility                                                                                                                                                                                                                    |                           | 114%     |                           | 100%     |
| Dividend                yield                                                                                                                                                                                                                               |                           | —  |                           | —  |

***Fair Value of      Financial Instruments***

***Reclassifications***

***Recent Accounting      Pronouncements***

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 3 — Working Capital**

|                                                                                                                                                                                                                                                                    |                                |        |           |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|-----------|--------|
| Cash                on hand at December 31, 2005                                                                                                                                                                                                                   |       | $      | 3,123,927 |   |
|                                                                                                                                                                                                                                                               |                           |   |      |   |
| Committed                cash for completion of clinical                trials                               |                           |   | (244,100  | )      |
| Cash                available for operations in 2006                                                                                                                                                                                                               |                           | $      | 2,879,827 |   |

**Note 4 — Licensing      Agreements**

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 4 — Licensing      Agreements – (continued)**

|                                                                                                                                                                                                |                                |                                     |                                |                                         |                                |                                         |         |                                                  |                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-------------------------------------|--------------------------------|-----------------------------------------|--------------------------------|-----------------------------------------|---------|--------------------------------------------------|----------------------------------------------------|
| **Licensee**                                                                                                                                                                                   |                           | **Date                ofAgreement** |                           | **Date                ofExpiration(4)** |                           | **InitialLicensing                Fee** |    | **On-going                RoyaltyPercentage(2)** |
|                                                                                                                                                                                           |                           |                                |                           |                                    |                           |                                    |    |                                             |                                               |
| DePuy                Spine, Inc.(1)                                                                                                                                                            |       | 3/19/013/3/05                       |       | 11/24/09                                |       | $                                       | 750,000 |                         | 6.5%                                               |
|                                                                                                                                                                                           |                           |                                |                           |                                    |                           |                                    |    |                                             |                                               |
| Medtronic,                Inc.                                                                                                                                                                 |                           | 5/1/05                              |                           | 11/24/09                                |                           | $                                       | 680,000 |                                             | 7.5% on disposables1.5% on                hardware |
|                                                                                                                                                                                           |                           |                                |                           |                                    |                           |                                    |    |                                             |                                               |
| Harvest                Technologies, Inc.                                                                                                                                                      |                           | 6/30/05                             |                           | 11/24/09                                |                           | $                                       | 500,000 |                                             | 7.5% on disposables1.5% on                hardware |
|                                                                                                                                                                                           |                           |                                |                           |                                    |                           |                                    |    |                                             |                                               |
| Perfusion                Partners, Inc.                                                                                                                                                        |                           | 6/26/05                             |                           | 11/24/09                                |                           | $                                       | 250,000 | (3)                                              | 10%                                                |
|                                                                                                                                                                                           |                           |                                |                           |                                    |                           |                                    |    |                                             |                                               |
| COBE                Cardiovascular, Inc.                                                                                                                                                       |                           | 10/7/05                             |                           | 11/24/09                                |                           | $                                       | 45,000  |                                             | 7.5% on disposables1.5% on                hardware |
|                                                                                                                                                                                           |                           |                                |                           |                                    |                           |                                    |    |                                             |                                               |
| SafeBlood                Technologies,                Inc.                       |                           | 10/12/05                            |                           | 11/24/09                                |                           | $                                       | 50,000  | (3)                                              | 8.0% to                9.0%                        |

**Note 5 — Royalty      Agreements**

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 6 — Receivables**

|                                                                                                                                                                                                                                                                            |                                |          |         |                                |        |         |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|----------|---------|--------------------------------|--------|---------|--------|
|                                                                                                                                                                                                                                                                       |                           | **2005** |    | **2004**                       |   |
|                                                                                                                                                                                                                                                                       |                           |     |    |                           |   |    |   |
| Trade                receivables                                                                                                                                                                                                                                           |                           | $        | 197,982 |       | $      | 143,821 |   |
| Royalty                receivables                                                                                                                                                                                                                                         |                           |     | 304,250 |                           |   | 174,746 |   |
| Short-term                portion of notes                receivable                                  |       |     | 15,562  |                           |   | — |   |
| Other                receivables                                                                                                                                                                                                                                           |                           |     | 17,828  |                           |   | 35,822  |   |
|                                                                                                                                                                                                                                                                       |                           |     | 535,622 |                           |   | 354,389 |   |
|                                                                                                                                                                                                                                                                       |                           |     |    |                           |   |    |   |
| Less                allowance for doubtful accounts                                                                                                                                                                                                                        |                           |     | (89,893 | )                              |   | (38,823 | )      |
|                                                                                                                                                                                                                                                                       |                           | $        | 445,729 |                           | $      | 315,566 |   |

**Note 7 — Prepaid      Expenses, Other Current Assets, and Inventory**

|                                                                                                                                                                                                                                                                                                                                                                |                                |          |         |                                |        |         |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|----------|---------|--------------------------------|--------|---------|
|                                                                                                                                                                                                                                                                                                                                                           |                           | **2005** |    | **2004**                       |
|                                                                                                                                                                                                                                                                                                                                                           |                           |     |    |                           |   |    |
| Prepaid                insurance                                                      |       | $        | 117,880 |       | $      | 97,926  |
| Prepaid                fees                                                                                                                                                                                                                                                                                                                                    |                           |     | 67,266  |                           |   | 95,996  |
| Prepaid                airpass                                                                                                                                                                                                                                                                                                                                 |                           |     | — |                           |   | 11,728  |
| Travel                advances                                                                                                                                                                                                                                                                                                                                 |                           |     | 5,655   |                           |   | 18,330  |
| Deposits                                                                                                                                                                                                                                                                                                                                                       |                           |     | 3,811   |                           |   | 5,662   |
| Inventory                                                                                                                                                                                                                                                                                                                                                      |                           |     | 27,575  |                           |   | 44,403  |
|                                                                                                                                                                                                                                                                                                                                                           |                           | $        | 222,187 |                           | $      | 274,045 |

**Note 8 — Property and      Equipment**

|                                                                                                                                                                                                                                                             |                                |          |          |                                 |        |          |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|----------|----------|---------------------------------|--------|----------|--------|
|                                                                                                                                                                                                                                                        |                           | **2005** |     | **2004**                        |   |
|                                                                                                                                                                                                                                                        |                           |     |     |                            |   |     |   |
| Medical                equipment                                                                                                                                                                                                                            |       | $        | 281,610  |                            | $      | 300,135  |   |
| Office                equipment                                                                                                                                                                                                                             |                           |     | 74,559   |                            |   | 74,559   |   |
| Automobile                                                                                                                                                                                                                                                  |                           |     | —  |                            |   | 21,000   |   |
|                                                                                                                                                                                                                                                        |                           |     | 356,169  |                            |   | 395,694  |   |
|                                                                                                                                                                                                                                                        |                           |     |     |                            |   |     |   |
| Less                accumulated                depreciation                                 |                           |     | (281,575 | )      |   | (200,975 | )      |
|                                                                                                                                                                                                                                                        |                           | $        | 74,594   |                            | $      | 194,719  |   |

**Note 9 — Intangible      Assets**

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 9 — Intangible      Assets – (continued)**

|                                                                                                                                                                                                                                                             |                                |          |           |                                 |        |           |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|----------|-----------|---------------------------------|--------|-----------|--------|
|                                                                                                                                                                                                                                                        |                           | **2005** |      | **2004**                        |   |
|                                                                                                                                                                                                                                                        |                           |     |      |                            |   |      |   |
| Patents                                                                                                                                                                                                                                                     |                           | $        | 2,400,000 |                            | $      | 2,400,000 |   |
| Less                accumulated                amortization                                 |       |     | (442,105  | )      |   | (315,790  | )      |
|                                                                                                                                                                                                                                                        |                           | $        | 1,957,895 |                            | $      | 2,084,210 |   |

**Note 10 — Income      Taxes**

|                                                                                                                                                                                                                                                                                                                                       |                                |          |            |                                 |        |            |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|----------|------------|---------------------------------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                  |                           | **2005** |       | **2004**                        |   |
|                                                                                                                                                                                                                                                                                                                                  |                           |     |       |                            |   |       |   |
| Current:                                                                                                                                                                                                                                                                                                                              |                           |     |       |                            |   |       |   |
| Federal                                                                                                                                                                                                                                                                                                                               |                           | $        | —    |                            | $      | —    |   |
| State                                                                                                                                                                                                                                                                                                                                 |                           |     | —    |                            |   | —    |   |
| Deferred:                                                                                                                                                                                                                                                                                                                             |                           |     |       |                            |   |       |   |
| Federal                                                                                                                                                                                                                                                                                                                               |                           |     | 784,000    |                            |   | 1,138,000  |   |
| State                                                                                                                                                                                                                                                                                                                                 |                           |     | 133,000    |                            |   | 182,000    |   |
| Net                operating loss                carryforward                                             |       |     | 1,794,000  |                            |   | 1,815,000  |   |
| Valuation                allowance                                                                                                                                                                                                                                                                                                    |                           |     | (2,711,000 | )      |   | (3,135,000 | )      |
| Total                income tax expense                                                                                                                                                                                                                                                                                               |                           | $        | —    |                            | $      | —    |   |

|                                                                                                                                                                                                                                                                                                                           |          |            |                                 |        |            |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|------------|---------------------------------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                      | **2005** |       | **2004**                        |   |
|                                                                                                                                                                                                                                                                                                                      |     |       |                            |   |       |   |
| Deferred                tax assets:                                                                                                                                                                                                                                                                                       |     |       |                            |   |       |   |
| Amortization                of deferred                compensation                                          | $        | 2,564,000  |                            | $      | 1,712,000  |   |
| Other                                                                                                                                                                                                                                                                                                                     |     | 158,000    |                            |   | 37,000     |   |
| Total                deferred tax assets                                                                                                                                                                                                                                                                                  |     | 2,722,000  |                            |   | 1,749,000  |   |
|                                                                                                                                                                                                                                                                                                                      |     |       |                            |   |       |   |
| Deferred                tax liabilities:                                                                                                                                                                                                                                                                                  |     |       |                            |   |       |   |
| Amortization                of patents                                                                                                                                                                                                                                                                                    |     | (631,000   | )      |   | (658,000   | )      |
| Other                                                                                                                                                                                                                                                                                                                     |     | (21,000    | )                               |   | (43,000    | )      |
| Net                deferred tax assets                                                                                                                                                                                                                                                                                    |     | 2,070,000  |                            |   | 1,048,000  |   |
| Net                operating loss carryforwards                                                                                                                                                                                                                                                                           |     | 7,514,000  |                            |   | 5,825,000  |   |
|                                                                                                                                                                                                                                                                                                                      |     | 9,584,000  |                            |   | 6,873,000  |   |
| Less                valuation allowance                                                                                                                                                                                                                                                                                   |     | (9,584,000 | )                               |   | (6,873,000 | )      |
| Total                deferred tax assets                                                                                                                                                                                                                                                                                  | $        | —    |                            | $      | —    |   |

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 10 — Income Taxes– (continued)**

|                                                                                                                                                                                                                                                                               |                                |          |                                  |          |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|----------|----------------------------------|----------|--------|
|                                                                                                                                                                                                                                                                          |                           | **2005** |                             | **2004** |   |
|                                                                                                                                                                                                                                                                          |                           |     |                             |     |   |
| U.S.                Federal statutory income tax                                                                                                                                                                                                                              |                           | 35.0     | %                                | 35.0     | %      |
|                                                                                                                                                                                                                                                                          |                           |     |                             |     |   |
| State                and local income tax                benefits                                   |       | 7.2      | %                                | 2.5      | %      |
| Other                                                                                                                                                                                                                                                                         |                           | (0.4     | %)      | 1.1      | %      |
| Nondeductible                expenses                                                                                                                                                                                                                                         |                           | (0.1     | %)                               | (0.1     | %)     |
| Valuation                allowance for deferred income tax assets                                                                                                                                                                                                             |                           | (41.7    | %)                               | (38.5    | %)     |
| Effective                income tax rate                                                                                                                                                                                                                                      |                           | 0.0      | %                                | 0.0      | %      |

**Note 11 — Capital      Stock**

***Common      Stock***

***Series A      Convertible Preferred Stock***

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 11 — Capital      Stock – (continued)**

***Series B      Convertible Preferred Stock***

***Series C      Convertible Preferred Stock***

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 11 — Capital      Stock – (continued)**

***Warrants and      Options***

|                                                                     |                                |           |                                |           |
|---------------------------------------------------------------------|--------------------------------|-----------|--------------------------------|-----------|
| **Equity                Instruments**                               |                           | **2005**  |                           | **2004**  |
|                                                                |                           |      |                           |      |
| A                and B Warrants(1)                                  |                           | 22,500    |       | 627,155   |
| C-1                Warrants(2)                                      |                           | 815,900   |                           | 1,301,500 |
| C-2                Warrants(2)                                      |                           | 876,750   |                           | 1,314,000 |
| Unit                Warrants(3)                                     |                           | 4,250,000 |                           | 4,500,000 |
| Other                Warrants(4)                                    |                           | 2,563,838 |                           | 3,510,545 |
| Options                issued under the Long-Term Incentive Plan(5) |       | 2,782,077 |                           | 2,516,577 |

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 11 — Capital      Stock – (continued)**

***Activity***

|                                                                                                                                                                                                                  |                                |                                |                                |              |           |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------|-----------|
| **Source**                                                                                                                                                                                                       |                           | **#                of Shares** |                           | **Proceeds** |
|                                                                                                                                                                                                             |                           |                           |                           |         |      |
| Conversion                of series A convertible preferred shares(1)                                                                                                                                            |       | 431,528                        |       |         | —   |
| Conversion                of series B convertible preferred shares(1)                                                                                                                                            |                           | 449,942                        |                           |         | —   |
| Conversion                of series C convertible preferred shares                                                                                                                                               |                           | 839,500                        |                           |         | —   |
| Exercise                of class A warrants                                                                                                                                                                      |                           | 42,500                         |                           | $            | 42,500    |
| Exercise                of class B warrants(2)                                                                                                                                                                   |                           | 507,008                        |                           | $            | 673,851   |
| Exercise                of class C-1 warrants                                                                                                                                                                    |                           | 462,900                        |                           | $            | 694,350   |
| Exercise                of class C-2 warrants                                                                                                                                                                    |                           | 478,700                        |                           | $            | 689,925   |
| Exercise                of unit offering warrants                                                                                                                                                                |                           | 250,000                        |                           | $            | 375,000   |
| Exercise                of options issued under the Long-Term Incentive                Plan(3)                    |                           | 252,000                        |                           | $            | 367,500   |
| Exercise                of other warrants(2)                                                                                                                                                                     |                           | 870,190                        |                           | $            | 356,101   |
| Other                issuances                                                                                                                                                                                   |                           | 73,673                         |                           | $            | —   |
| Totals                                                                                                                                                                                                           |                           | 4,657,941                      |                           | $            | 3,199,227 |

|                                                                                                                                                                                                                                                                    |                                |          |        |                                |        |         |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|----------|--------|--------------------------------|--------|---------|
|                                                                                                                                                                                                                                                               |                           | **2005** |   | **2004**                       |
|                                                                                                                                                                                                                                                               |                           |     |   |                           |   |    |
| Series                A Preferred                Stock                                   |       | $        | 13,872 |       | $      | 64,080  |
| Series                B Preferred Stock                                                                                                                                                                                                                            |                           |     | 3,413  |                           |   | 56,616  |
| Series                C Preferred Stock                                                                                                                                                                                                                            |                           |     | 10,857 |                           |   | 79,195  |
|                                                                                                                                                                                                                                                               |                           | $        | 28,142 |                           | $      | 199,891 |

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 11 — Capital      Stock – (continued)**

***Offerings***

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 11 — Capital      Stock – (continued)**

**Note 12 — Long-Term      Incentive Plan**

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 12 — Long-Term      Incentive Plan – (continued)**

|                                                                                                                                                                                                                                                                                                                                                                                                            |                                |                                    |                                 |                                  |         |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|------------------------------------|---------------------------------|----------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                       |                           | **Number                ofShares** |                            | **WeightedAverageExercisePrice** |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                           |                               |                            |                             |    |
| Balance                at December 31, 2003                                                                                                                                                                                                                                                                                                                                                                |       | 1,840,698                          |                            | $                                | 1.50    |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                           |                               |                            |                             |    |
| Granted                                                                                                                                                                                                                                                                                                                                                                                                    |                           | 1,480,000                          |                            | $                                | 1.52    |
| Cancelled                                                                                                                                                                                                                                                                                                                                                                                                  |                           | (749,121                           | )      | $                                | 1.48    |
| Exercised                                                                                                                                                                                                                                                                                                                                                                                                  |                           | (55,000                            | )                               | $                                | 1.50    |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                           |                               |                            |                             |    |
| Balance                at December 31,                2004                                                         |                           | 2,516,577                          |                            | $                                | 1.51    |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                           |                               |                            |                             |    |
| Granted                                                                                                                                                                                                                                                                                                                                                                                                    |                           | 517,500                            |                            | $                                | 1.52    |
| Cancelled                                                                                                                                                                                                                                                                                                                                                                                                  |                           | —                            |                            | $                                | — |
| Exercised                                                                                                                                                                                                                                                                                                                                                                                                  |                           | (252,000                           | )                               | $                                | 1.46    |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                           |                               |                            |                             |    |
| Balance                at December 31, 2005                                                                                                                                                                                                                                                                                                                                                                |                           | 2,782,077                          |                            | $                                | 1.68    |

|                                             |                                |                                                |                                |                                                          |                                |                                  |        |                                |           |                                  |        |        |
|---------------------------------------------|--------------------------------|------------------------------------------------|--------------------------------|----------------------------------------------------------|--------------------------------|----------------------------------|--------|--------------------------------|-----------|----------------------------------|--------|--------|
|                                        |                           | **Options                Outstanding**         |                           | **Options                Exercisable**                   |
| **Range                of Exercise Prices** |                           | **Number                ofOutstanding Shares** |                           | **WeightedAverageRemainingContract                Life** |                           | **WeightedAverageExercisePrice** |   | **NumberExercisable**          |      | **WeightedAverageExercisePrice** |
|                                        |                           |                                           |                           |                                                     |                           |                             |   |                           |      |                             |   |   |
| $1.15                – $2.55          |       | 2,614,577                                      |       | 7.7                                                      |       | $                                | 1.58   |       | 2,364,577 |         | $      | 1.59   |
| $3.14                – $6.00          |                           | 167,500                                        |                           | 9.4                                                      |                           | $                                | 4.05   |                           | 37,500    |                             | $      | 4.14   |

**Note 13 — Deferred      Compensation**

|                                                                                                                                                                                                                                                      |                                |          |            |                                 |        |            |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|----------|------------|---------------------------------|--------|------------|--------|
|                                                                                                                                                                                                                                                 |                           | **2005** |       | **2004**                        |   |
|                                                                                                                                                                                                                                                 |                           |     |       |                            |   |       |   |
| Beginning                balance                                                                                                                                                                                                                     |                           | $        | 567,788    |                            | $      | 1,438,070  |   |
| Deferred                compensation recorded                                                                                                                                                                                                        |       |     | 1,652,666  |                            |   | 2,182,213  |   |
| Amortization                of stock-based                compensation                              |                           |     | (1,981,653 | )      |   | (3,052,495 | )      |
|                                                                                                                                                                                                                                                 |                           | $        | 238,801    |                            | $      | 567,788    |   |

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 14 — Supplemental      Cash Flow Disclosures – Non-Cash Transactions**

|                                                                                                                                                                                                                                                                        |                                |          |         |                                |        |           |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|----------|---------|--------------------------------|--------|-----------|
|                                                                                                                                                                                                                                                                   |                           | **2005** |    | **2004**                       |
|                                                                                                                                                                                                                                                                   |                           |     |    |                           |   |      |
| Commissions                paid in stock                                                                                                                                                                                                                               |       | $        | — |       | $      | 15,374    |
| Accrued                dividends on 6% preferred stock                                                                                                                                                                                                                 |                           |     | — |                           |   | 79,195    |
| Accrued                dividends on 8% preferred stock                                                                                                                                                                                                                 |                           |     | 84,902  |                           |   | 240,665   |
| Beneficial                conversion feature of Series C                                                                                                                                                                                                               |                           |     |    |                           |   |      |
| Preferred                stock recorded as preferred stock                dividend                               |                           |     | — |                           |   | 2,800,000 |
| Stock                issued for executive recruitment fees                                                                                                                                                                                                             |                           |     | 35,000  |                           |   | —   |
| Stock                issued for contract litigation settlement                                                                                                                                                                                                         |                           |     | 227,500 |                           |   | —   |
| Preferred                dividends paid by issuance of stock                                                                                                                                                                                                           |                           |     | 166,063 |                           |   | 240,704   |

**Note 15 — Related      Party Transactions**

----

**CYTOMEDIX,      INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**Note 16 — Operating      Leases**

|                                                                                                                                                                                                                         |                                    |        |         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|--------|---------|
| **Years                Ending December 31:**                                                                                                                                                                       | **     ** |   |    |
|                                                                                                                                                                                                                    |                               |   |    |
| 2006                                                                                                                                                                                                                    |                               | $      | 62,775  |
| 2007                                                                                                                                                                                                                    |                               |   | 64,658  |
| 2008                                                                                                                                                                                                                    |                               |   | 38,369  |
| Thereafter                                                                                                                                                                                                              |                               |   | — |
| Total                future minimum lease                payments                          |                               | $      | 165,802 |

**Note 17 — Commitments      and Contingencies**

**Note 18 — Subsequent      Events**

----

**SIGNATURES**

|                                     |                 |                                                                        |
|-------------------------------------|-----------------|------------------------------------------------------------------------|
|                                | CYTOMEDIX, INC. |
|                                |            |
| Date:                March 23, 2006 | By:        | /s/ Kshitij Mohan                                                      |
|                                |            | Kshitij MohanCEO and Chairman of the Board of                Directors |

|                                                                                                                                                                            |                                |                                                                     |                                |                |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------------------------------------------|--------------------------------|----------------|
| **Signature**                                                                                                                                                              |                           | **Title**                                                           |                           | **Date**       |
|                                                                                                                                                                       |       |                                                                |       |           |
| /s/                Kshitij Mohan                                                                                                                                           |                           | CEO and Chairman of the Board of                Directors           |                           | March 23, 2006 |
| Kshitij                Mohan                                                                                                                                               |
|                                                                                                                                                                       |                           |                                                                |                           |           |
| /s/                Andrew S.                Maslan                     |                           | Chief Financial Officer and Chief Accounting                Officer |                           | March 23, 2006 |
| Andrew                S. Maslan                                                                                                                                            |                           |
|                                                                                                                                                                       |                           |                                                                |                           |           |
| /s/                David P. Crews                                                                                                                                          |                           | Director                                                            |                           | March 23, 2006 |
| David                P. Crews                                                                                                                                              |                           |
|                                                                                                                                                                       |                           |                                                                |                           |           |
| /s/                Arun K. Deva                                                                                                                                            |                           | Director                                                            |                           | March 23, 2006 |
| Arun                K. Deva                                                                                                                                                |                           |
|                                                                                                                                                                       |                           |                                                                |                           |           |
| /s/                David F. Drohan                                                                                                                                         |                           | Director                                                            |                           | March 23, 2006 |
| David                F. Drohan                                                                                                                                             |                           |
|                                                                                                                                                                       |                           |                                                                |                           |           |

----

**EXHIBIT      INDEX**

|                |                                |                                                                                                                                                                                                                                                                                                                                                                           |
|----------------|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **ExhibitNo.** |                           | **Description**                                                                                                                                                                                                                                                                                                                                                           |
|           |                           |                                                                                                                                                                                                                                                                                                                                                                      |
| 2.1            |       | First Amended                Plan of                Reorganization with All Technical Amendments (Previously filed on                June 28,                2002, on Form 8-K, File No. 000-28443).                                                                                                                                                                      |
| 2.2            |                           | Amended and Restated                Official Exhibits to the First Amended Plan of Reorganization of                Cytomedix, Inc. with All Technical Amendments (Previously filed on                May 10,                2004, on Form 10-QSB for the quarter ended March 31, 2004, File No.                000-28443).                                               |
| 3.1            |                           | Restated Certificate                of Incorporation of Cytomedix, Inc. (Previously filed on November                7, 2002,                on Form 10-QSB for quarter ended June 30, 2001, File No.                000-28443).                                                                                                                                          |
| 3.2            |                           | Amendment to Restated                Certificate of Incorporation of Cytomedix, Inc. (Previously filed                on                November 15, 2004, on Form 10-QSB for quarter ended September 30,                2004,                File No. 000-28443).                                                                                                        |
| 3.3            |                           | Restated Bylaws                of                Cytomedix, Inc. (Previously filed on November 7, 2002, on Form 10-QSB                for                quarter ended June 30, 2001, File No. 000-28443).                                                                                                                                                                |
| 4.1            |                           | Amended and Restated                Certificate of Designation of the Relative Rights and Preferences                of                Series A Preferred, Series B Preferred and common stock of Cytomedix,                Inc.                (Previously filed on March 31, 2004, on Form 10-KSB for year ended                December 31, 2003, File No. 000-28443). |
| 4.2            |                           | Form of Class                A                Warrant issued to New Investors and DIP Lenders (Previously filed                on                December 5, 2002, on Form 10-QSB for quarter ended September 30,                2001,                File No. 000-28443).                                                                                                |
| 4.3            |                           | Form of Class                B                Warrant issued to New Investors and DIP Lenders (Previously filed                on                December 5, 2002, on Form 10-QSB for quarter ended September 30,                2001,                File No. 000-28443).                                                                                                |
| 4.4            |                           | Form of Series                C-1                Warrant to Purchase Shares of common stock of Cytomedix, Inc. (Previously                filed on March 29, 2004 on Form 8-K, File No. 000-28443.)                                                                                                                                                                       |
| 4.5            |                           | Form of Series                C-2                Warrant to Purchase Shares of common stock of Cytomedix, Inc. (Previously                filed on March 29, 2004 on Form 8-K, File No. 000-28443).                                                                                                                                                                       |
| 4.6            |                           | Certificate of                Designation of the Relative Rights and Preferences of the Series                C                Convertible Stock of Cytomedix, Inc. as filed with the Delaware Secretary                of State on March 25, 2004 (Previously filed on March 29, 2004 on                Form                8-K, File No. 000-28443).                    |
| 4.7            |                           | Form of warrant                issued                to investors in the 2004 Unit Offering (Previously filed on May 11,                2004,                on Form SB-2, File No. 333-115364).                                                                                                                                                                          |
| 10.1           |                           | Royalty Agreement,                dated as of December 26, 2000, by and between Cytomedix, Inc. and                Curative                Health Services, Inc. (Previously filed on January 17, 2001, on Form                8-K,                File No. 000-28443).                                                                                                   |
| 10.2           |                           | First Amendment                to                Royalty Agreement, dated as of April 20, 2001, by and between Cytomedix,                Inc. and Curative Health Services, Inc. (Previously filed on May                25, 2001,                on SB-2/A, File No. 333-55818).                                                                                         |
| 10.3           |                           | Second Amendment                to                Royalty Agreement, dated as of December 5, 2002, by and between Cytomedix,                Inc. and Curative Health Services, Inc. (Previously filed on March                31,                2003, on Form 10-KSB for year ended December 31, 2002, File No.                000-28443).                               |
| 10.4           |                           | Cytomedix, Inc.                Long-Term Incentive Plan (Previously filed on November 7, 2002, on                Form                10-QSB for quarter ended June 30, 2001, File No. 000-28443).                                                                                                                                                                         |
| 10.5           |                           | License Agreement                dated March 21, 2001, by and between Cytomedix, Inc. and DePuy AcroMed,                Inc. (Previously filed on April 16, 2001, on Form 10-KSB for year                ended                December 31, 2000, File No. 000-28443).                                                                                                     |
| 10.6           |                           | Amendment dated                March                3, 2005, to the License Agreement by and between Cytomedix, Inc.                and DePuy                Spine, Inc. (f/k/a DePuy Acromed, Inc.) (Previously filed on March                31,                2005, on Form 10-KSB for year ended December 31, 2004, File No.                000-28443).              |
| 10.7           |                           | Second License                Agreement dated March 3, 2005, to the License Agreement by and between                Cytomedix, Inc. and DePuy Spine, Inc. (f/k/a DePuy Acromed, Inc.)                (Previously filed on March 31, 2005, on Form 10-KSB for year ended                December 31, 2004, File No. 000-28443).                                            |

----

|                |        |                                                                                                                                                                                                                                                                                                                                           |
|----------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **ExhibitNo.** |   | **Description**                                                                                                                                                                                                                                                                                                                           |
|           |   |                                                                                                                                                                                                                                                                                                                                      |
| 10.8           |   | Settlement and                License                Agreement dated May 1, 2005 by and between Cytomedix, Inc. and Medtronic,                Inc. (Previously filed on May 10, 2005, on Form 8-K, File No.                000-28443).                                                                                                    |
| 10.9           |   | Settlement Agreement                and License Agreement dated May 23, 2005, by and between Cytomedix,                Inc.,                and Harvest Technologies Corporation (Previously filed on May 27,                2005, on                Form 8-K, File No. 000-28443).                                                       |
| 10.10          |   | Settlement and                License                Agreement dated June 26, 2005, by and between Cytomedix, Inc., and                Perfusion Partners and Associates Inc. (Previously filed on August                15,                2005, on Form 10-QSB for the quarter ended June 20, 2005, File No.                000-28443). |
| 10.11          |   | License Agreement                dated October 7, 2005, by and between Cytomedix, Inc., and COBE                Cardiovascular, Inc. (Previously filed on October 11, 2005, on Form                8-K,                File No. 000-28443).                                                                                               |
| 10.12          |   | Settlement and                License                Agreement dated October 12, 2005, by and between Cytomedix, Inc.,                and                SafeBlood Technologies, Inc. (Previously filed on November 9, 2005,                on                Form 10-QSB, File No. 000-28443).                                           |
| 10.13          |   | Employment Agreement                with Ms. Carelyn P. Fylling (Previously filed on December 5, 2002, on                Form 10-QSB for quarter ended September 30, 2001, File No.                000-28443).                                                                                                                       |
| 10.14          |   | Employment Agreement                with Mr. William L. Allender (Previously filed on March 31, 2004, on                Form 10-KSB for year ended December 31, 2003, File No.                000-28443).                                                                                                                            |
| 10.15          |   | Addendum to Employment                Agreement with Mr. William L. Allender (Previously filed on November                15, 2004, on Form 10-QSB for quarter ended September 30, 2004, File                No.                000-28443).                                                                                          |
| 10.16          |   | Separation Agreement                and Release dated July 15, 2005, by and between Cytomedix, Inc.,                and                William L. Allender (Previously filed on August 15, 2005, on Form                10-QSB                for the quarter ended June 30, 2005, File No. 000-28443).                                   |
| 10.17          |   | Employment Agreement                with Kshitij Mohan, Ph.D., dated April 20, 2004 (Previously filed                on May                7, 2004, on Form 8-K, File No. 00028443).                                                                                                                                                      |
| 10.18          |   | Termination Agreement                between Cytomedix, Inc., and Kshitij Mohan, dated April 20, 2004                (Previously filed on May 7, 2004, on Form 8-K, File No.                000-28443).                                                                                                                                   |
| 10.19          |   | Employment Agreement                dated June 3, 2005, by and between Cytomedix, Inc., and Andrew Maslan                (Previously filed on June 20, 2005, on Form 8-K, File no.                000-28443).                                                                                                                             |
| 10.20          |   | Distributor Agreement                dated October 31, 2005 by and between Cytomedix, Inc. and National                Wound                Therapies, LLC.                                                                                                                                                                               |
| 20.1           |   | Definitive Proxy                Statement (Previously filed on September 16, 2005, File No.                000-28443).                                                                                                                                                                                                                    |
| 31.1           |   | Certification                of Chief                Executive Officer of Cytomedix, Inc., pursuant to Section 302 of                the                Sarbanes-Oxley Act of 2002.                                                                                                                                                       |
| 31.2           |   | Certification                of Chief                Financial Officer of Cytomedix, Inc., pursuant to Section 302 of                the                Sarbanes-Oxley Act of 2002.                                                                                                                                                       |
| 32.1           |   | Certificate of                Chief                Executive Officer of Cytomedix, Inc., pursuant to 18                U.S.C.ss.1350.                                                                                                                                                                                                     |
| 32.2           |   | Certificate of                Chief                Financial Officer of Cytomedix, Inc., pursuant to 18                U.S.C.ss.1350.                                                                                                                                                                                                     |