InspireMD Announces Closing of Public Offering of Approximately $14.6 Million BOSTON, MA

InspireMD Announces Closing of Public Offering

of Approximately $14.6 Million

BOSTON, MA - July 7, 2016 -

InspireMD, Inc. (NYSE MKT: NSPR) ("InspireMD" or the "Company"),

a leader in embolic prevention systems (EPS), neurovascular devices and thrombus management technologies, today announced the

closing of a "best efforts" public offering of 442,424 shares of Series B Convertible Preferred Stock and accompanying

warrants to purchase up to 44,242,400 shares of common stock. Each share of Series B Convertible Preferred Stock is convertible

into 100 shares of common stock at a conversion price equal to $0.33 per share, and the holders of Series B Convertible Preferred

Stock will be entitled to receive cumulative dividends at the rate per share of 15% per annum of the stated value for five years.

The warrants shall be exercisable immediately and have a term of exercise of five years from the date of issuance and have an

exercise price of $0.20 per share of common stock. The Series B Convertible Preferred Stock and accompanying warrants were sold

at a price of $33.00 per share. The Company received gross proceeds of approximately $14.6 million from the offering, before deducting

placement agent fees and estimated offering expenses payable by the Company.

The Company intends to use the net proceeds

from the offering to conduct sales activities related to CGuard EPS , MGuard Prime EPS and develop its pipeline

of new products and for general corporate purposes.

Dawson James Securities, Inc. served as the

sole placement agent.

The securities sold in the offering described

above were offered pursuant to a registration statement on Form S-1 which was filed with the Securities and Exchange Commission

("SEC") and was declared effective on June 30, 2016. A final prospectus supplement relating to the offering was filed

with the SEC on July 1, 2016. Copies of the prospectus supplement and accompanying prospectus relating to the offering may be obtained

from Dawson James Securities, Inc., Attention: Prospectus Department, 1 North Federal Highway, 5th Floor, Boca Raton, FL 33432,

mmaclaren@dawsonjames.com or toll free at 866.928.0928.

This press release shall not constitute an

offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction

in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of

any such state or jurisdiction.

About InspireMD, Inc.

InspireMD seeks to utilize its proprietary

MicroNetTM technology to make its products the industry standard for embolic protection and to provide a superior solution

to the key clinical issues of current stenting in patients with a high risk of distal embolization, no reflow and major adverse

InspireMD intends to pursue applications of

this MicroNetTM technology in coronary, carotid (CGuardTM), neurovascular, and peripheral artery procedures.

InspireMD's common stock is quoted on the NYSE MKT under the ticker symbol NSPR.

Forward-looking Statements

This press release contains "forward-looking

statements." Such statements may be preceded by the words "intends," "may," "will," "plans,"

"expects," "anticipates," "projects," "predicts," "estimates," "aims,"

"believes," "hopes," "potential" or similar words. Forward-looking statements are not guarantees

of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many

of which are beyond the Company's control, and cannot be predicted or quantified and consequently, actual results may differ materially

from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks

and uncertainties associated with (i) market acceptance of our existing and new products, (ii) negative clinical trial results

or lengthy product delays in key markets, (iii) an inability to secure regulatory approvals for the sale of our products, (iv)

intense competition in the medical device industry from much larger, multinational companies, (v) product liability claims, (vi)

product malfunctions, (vii) our limited manufacturing capabilities and reliance on subcontractors for assistance, (viii) insufficient

or inadequate reimbursement by governmental and other third party payers for our products, (ix) our efforts to successfully obtain

and maintain intellectual property protection covering our products, which may not be successful, (x) legislative or regulatory

reform of the healthcare system in both the U.S. and foreign jurisdictions, (xi) our reliance on single suppliers for certain product

components, (xii) the fact that we will need to raise additional capital to meet our business requirements in the future and that

such capital raising may be costly, dilutive or difficult to obtain and (xiii) the fact that we conduct business in multiple foreign

jurisdictions, exposing us to foreign currency exchange rate fluctuations, logistical and communications challenges, burdens and

costs of compliance with foreign laws and political and economic instability in each jurisdiction. More detailed information about

the Company and the risk factors that may affect the realization of forward looking statements is set forth in the Company's filings

with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K and its Quarterly Reports

on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov.

The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future

events or otherwise.

Chief Financial Officer

Email: craigs@inspiremd.com

Phone: (212) 554-5482