Exhibit 99.1

[LOGO]CytRx
      Corporation



For Additional Information:

CytRx Corporation
Steven A. Kriegsman                                              Carolyn French
Chief Executive Officer                              Director of Communications
310/826-5648                                                       310/826-5648
STEVENK@CYTRX.COM                                             CFRENCH@CYTRX.COM


         CYTRX RAISES $8.7 MILLION IN PRIVATE PLACEMENT OF COMMON STOCK

LOS ANGELES, CA - SEPTEMBER 17, 2003 - CytRx Corporation (NASDAQ:CYTR) announced
today the  completion of a private  placement of 4,141,000  shares of its common
stock to selected institutional investors, including current shareholders,  with
gross proceeds of approximately $8.7 million.

In  connection  with the sale of the  common  stock,  the  company  also  issued
warrants  to  purchase  an  additional  1,035,000  shares of common  stock at an
exercise  price of $3.05 per  share.  CytRx has  agreed to  register  all of the
privately placed shares of common stock,  together with the shares issuable upon
exercise of the warrants, for resale.

The company said that  approximately $7 million of the offering proceeds will be
used to fund Araios,  Inc., a CytRx  subsidiary  that will develop orally active
small  molecule  based  drugs to  prevent,  treat and cure  obesity  and type II
diabetes.

Cappello Capital Corp. served as lead placement agent in the financing.

"The  completion  of this  financing  allows CytRx to expand its RNAi program in
obesity  and type II diabetes  through the  formation  of a new,  fully  staffed
operating  subsidiary  engaged in the  development  of an orally  active drug to
treat these  debilitating  diseases,"  said Steven A.  Kriegsman,  the company's
chief  executive  officer.  "We are  extremely  pleased  with  our new  group of
institutional  investors and the executive and scientific team that we have been
able to attract. With this financing,  we believe we are now the world leader in
developing RNAi for obesity and type II diabetes."

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ABOUT CYTRX CORPORATION
CytRx Corporation is a biopharmaceutical  company engaged in the development and
commercialization   of  large-market   opportunity  products  in  a  variety  of
therapeutic  categories.  The company  recently  formed a broad-based  strategic
alliance with the  University of  Massachusetts  Medical School to develop novel
compounds for obesity, type II diabetes and ALS, including using a promising new
technology known as RNA interference  (RNAi).  CytRx recently licensed from UMMS
the exclusive worldwide rights to a DNA-based HIV vaccine  technology.  CytRx is
seeking strategic  partners to complete the development of FLOCOR, a product for
the treatment of sickle cell disease and which may have  applications  in cancer
and  disorders  such as stroke and heart  attack.  The company has  licensed its
TranzFect  delivery  technology for DNA-based  vaccines for certain diseases.  A
CytRx  subsidiary also holds interests in two development  stage  genomics-based
healthcare   companies.   For  more   information,   visit  CytRx's  website  at
www.cytrx.com.

CAUTIONARY NOTICE ABOUT FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking  statements within the meaning of
Section 21E of the  Securities  Exchange Act of 1934,  as amended,  that involve
risks and  uncertainties  that could  cause  actual  events or results to differ
materially  from  the  events  or  results  described  in  the   forward-looking
statements,  including risks or uncertainties  related to the potential need for
additional  capital  for CytRx to make  future  milestone  payments  and to fund
research for its various  products,  the need to satisfy closing  conditions for
the formation of CytRx's new obesity and type II diabetes  subsidiary,  the time
and expense to develop CytRx's DNA-based HIV vaccine and commercial applications
for its RNAi  technology,  and the  uncertainty  of  potential  results from the
future clinical trials for these products.  Additional  uncertainties  and risks
are described in CytRx's most  recently  filed SEC  documents,  such as its most
recent  annual report on Form 10-K,  all quarterly  reports on Form 10-Q and any
current  reports  on Form 8-K filed  since the date of the last Form  10-K.  All
forward-looking  statements are based upon information available to CytRx on the
date the  statements  are first  published.  CytRx  undertakes  no obligation to
publicly update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.


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