InspireMD Announces First Quarter 2021 Financial Results Company Completes Up-List to Nasdaq Capital Market, with Trading Becoming Effective

Announces First Quarter 2021 Financial Results

Completes Up-List to Nasdaq Capital Market, with Trading Becoming Effective May 21, 2021

to host investor conference call today, May 11, 2021, at 8:30am ET

Aviv, Israel- May 11, 2021 - InspireMD, Inc. (NYSE American: NSPR), developer of the CGuard Embolic

Prevention System (EPS) for the prevention of stroke caused by the treatment of Carotid Artery Disease (CAD), today announced

financial and operating results for the first quarter ended March 31, 2021.

Quarter 2021 and recent highlights:

persistent and tireless focus on execution continues as we build on our quest to change the standard of care in the treatment

of carotid artery disease and stroke prevention, with CGuard EPS and our novel Micronet mesh. Our Q1 achievements have set up

2021 to be a meaningful year of progress toward our goals of global expansion, commercial revenue growth, progress toward FDA

approval, growing our unmatched body of clinical evidence, and differentiating CGuard as a truly unique and preferred stent solution

for carotid artery disease," said Marvin Slosman, CEO of InspireMD.

recently, we announced a successful up-listing approval of our common stock on the Nasdaq Capital Market as a part of a reverse

stock split approved by stockholders. We believe listing on Nasdaq will help broaden our stockholder base, increase interest by

institutional and fundamental investors, and create stockholder value. The anticipated date for our shares to begin trading on

NASDAQ is May 21, 2021.

we ramp up the start of the C-Guardian U.S. pivotal trial for CGuard EPS -- an important step in our goal to achieve commercial

registration in the United States -- we announced that leading interventional cardiologist Chris Metzger, M.D., system chair of

clinical research at Ballard Health System in eastern Tennessee, has accepted a role as principle investigator in the U.S., along

with Piotr Musialek, who will serve as co-principal investigator focusing on the European enrollment in the trial. Hart Clinical

Consultants (HCC), a leading Contract Research Organization (CRO), will spearhead the effort managing the trial execution.

on our global expansion strategy, we announced this quarter an agreement with three China-based investment partners who will be

responsible for conducting all necessary registration and establish distribution for the CGuard EPS in mainland China. This is

a foundational building block for our overall Asia growth plan. Stroke is the leading cause of death in China, and the country

is believed to be the second largest market for peripheral stent procedures. We continue our push to expand into new the markets

of France, Taiwan and Korea.

we have strengthened our balance sheet and cash reserves and believe that we are well positioned and have the resources needed

to fund our trial, global expansion and build a pipeline of new products poised to transform the access and delivery of CGuard

into 2021, we are optimistic and encouraged by the direction of our business and the potential for CGuard EPS to change the carotid

disease treatment market with the most advanced stent system available," concluded Mr. Slosman.

Results for the First Quarter ended March 31, 2021

the three months ended March 31, 2021, revenue decreased by $28,000, or 2.7%, to $1,006,000, from $1,034,000 during the three

months ended March 31, 2020. CGuard revenue remained essentially unchanged at $969,000 during the three months ended March 31,

2021 as compared to $971,000 during the three months ended March 31, 2020, in spite of the continued postponement of many elective

procedures as a result of the residual COVID directed resources. However, MGuard Prime EPS revenue decreased by a 41.3% from $63,000

during the three months ended March 31, 2020, to $37,000 during the three months ended March 31, 2021, largely driven by the predominant

industry preferences favoring drug-eluting stents rather than bare metal stents such as MGuard Prime EPS in ST-Elevation Myocardial

Infarction ("STEMI") patients.

the three months ended March 31, 2021, gross profit (revenue less cost of revenues) decreased by 64.1%, or $189,000, to $106,000,

from $295,000 during the three months ended March 31, 2020. This decrease in gross profit resulted from an increase in write-offs

of $156,000, which were driven mainly by a component supply issue during the three months ended March 31, 2021 and an increase

of $33,000 in miscellaneous expenses during the three months ended March 31, 2021. Gross margin (gross profits as a percentage

of revenue) decreased to 10.5% during the three months ended March 31, 2021 from 28.5% during the three months ended March 31,

2020, driven by the factors mentioned above.

operating expenses for the quarter ended March 31, 2021 were $3,420,000, an increase of 47.7% compared to $2,316,000 for the same

period in 2020. This increase was primarily due to increases of $430,000 in salary expenses and related accrual expenses mainly

driven by additional resources in our product development and sales infrastructure, $248,000 in share-based compensation-related

expenses due to the expense recognition of grants made in the second half of 2020, $136,000 in development expenses associated

with CGuard EPS, mainly related to the new advanced delivery system and accessories, $118,000 of Directors' and Officers'

Liability Insurance expense due to increased premiums caused by recent trends in the overall insurance industry, an increase of

$108,000 in stockholder related expenses due to the special stockholder meeting and $64,000 of miscellaneous expense.

the three months ended March 31, 2021, financial income increased by 65.1%, or $28,000, to $71,000, from $43,000 during the three

months ended March 31, 2020. The increase in financial income primarily resulted from changes in exchange rates.

loss for the first quarter of 2021 totaled $3,243,000, or $0.53 per basic and diluted share, compared to a net loss of $1,978,000,

or $6.42 per basic and diluted share, for the same period in 2020. The average amount of shares outstanding used for the earnings

per share calculation were 6,122,690 in Q1 2021 and 308,202 in Q1 2020, both adjusted to reflect the 1:15 reverse split.

of March 31, 2021, cash and cash equivalents were $44.0 million compared to $12.6 million as of December 31, 2020. During the

first quarter of 2021, the Company raised $35.1 million net through various equity transactions.

Call and Webcast Details

will host a conference call at 8:30AM ET today, May 11, 2021, to review financial results and provide an update on corporate developments.

Following management's formal remarks, there will be a question-and-answer session.

note that registered participants will receive their dial in number upon registration and will dial directly into the call without

delay. Those without internet access or unable to pre-register may dial in by calling 1-844-854-4417 (domestic), 1-412-317-5739

(international) or 1-80-9212373 (Israel). All callers should dial in approximately 10 minutes prior to the scheduled start time

and ask to be joined into the InspireMD call.

conference call will also be available through a live webcast found here: https://services.choruscall.com/mediaframe/webcast.html?webcastid=yieueRnJ.

it will be broadcast live through the Company's website via the following link: https://www.inspiremd.com/en/investors/investor-relations/.

webcast replay of the call will be available approximately one hour after the end of the call through August 11, 2021 at the above

links. A telephonic replay of the call will be available through May 25, 2021 and may be accessed by calling 1-877-344-7529 (domestic)

or 1-412-317-0088 (international) and using access code 10155884.

seeks to utilize its proprietary MicroNet technology to make its products the industry standard for carotid stenting by providing

outstanding acute results and durable, stroke-free, long-term outcomes.

common stock is quoted on the NYSE American under the ticker symbol NSPR and certain warrants are quoted on the NYSE American

under the ticker symbol NSPR.WS and NSPR.WSB.

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.