InspireMD Announces Second Quarter 2020 Financial Results In the second quarter the Company was granted approval to market its CGuard MicroNet stent in Brazil and completed an $11.5 million capital raise; reported outsta

Announces Second Quarter 2020 Financial Results

the second quarter the Company was granted approval to market its CGuard MicroNet stent in Brazil and completed an $11.5

million capital raise; reported outstanding results in studies treating patients with the CGuard MicroNET stent

to host investor conference call today, August 5, 2020 at 8:30am ET

Aviv, Israel- August 5, 2020 - 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 second quarter ended June 30, 2020.

Quarter 2020 and recent highlights:

placed significant pressure on the operations of healthcare facilities worldwide, resulting in interruptions in elective procedure

volumes, including critical carotid artery treatments. However, we are encouraged by the gradual resumption of these crucial procedures

in a growing number of our key markets in Europe and other territories, and we look forward to this expansion taking hold in South

America as well. We are also buoyed by the scientific validation we continue to receive in both peer-reviewed publications and

opportunities to present at medical conferences where our CGuard MicroNet technology is being recognized as a valued advancement

in the carotid stent category," said Marvin Slosman, InspireMD's Chief Executive Officer. "Our expansion strategy

continues to progress, with our recent Brazilian approval for CGuard MicroNet introducing us to the largest

market for medical devices in Latin America and one of the top overall global markets for carotid artery disease. We believe this

approval will set the stage for continued expansion into other countries in South America.

are in the process of addressing the agencies remaining requests, specifically related to the stent-embolic protection device

(EPD) compatibility performance testing to gain full FDA approval of our Investigational Device Exemption (IDE) application to

initiate a pivotal study of CGuard EPS. We have already completed the testing of additional stents according to the FDA's

specifications, and have employed alternative visualization modalities that, we believe, will ultimately allow us to gain full

approval. Having an approved IDE is an extremely significant step towards enabling us to initiate a pivotal trial in the United

States, clearly one of the world's most important markets for carotid artery disease and other vascular treatments. We previously

indicated that the FDA has concurred with our clinical study design and data requirements to support the market approval of the

device. Accordingly, we believe that we are well positioned from a regulatory perspective in terms of our ability to initiate

addition, we believe the completion of our $11.5M financing will help ensure we are capable of advancing our commercial expansion

and research and development activities as a pillar of our growth objectives. Although the pandemic has put a spotlight on the

supply chain infrastructure challenges many in our field are facing, we stand at the ready to fulfill the needs of physicians

and their patients for these serious and lifesaving procedures," Mr. Slosman concluded.

Results for the Second Quarter and Six Months ended June 30, 2020

the three months ended June 30, 2020, revenue decreased by $1,041,000, or 76.9%, to $313,000, from $1,354,000 during the three

months ended June 30, 2019. This decrease was predominantly driven by a 75.7% decrease in sales volume of CGuard EPS from $1,116,000

during the three months ended June 30, 2019, to $271,000 during the three months ended June 30, 2020. This decrease was mainly

due to the fact that procedures with CGuard EPS, which are generally scheduled or non-emergency procedures, were mostly postponed

as hospitals shifted resources to patients affected by COVID-19. The decrease was also due to the large shipments of CGuard EPS

that we made during the three months ended June 30, 2019 of backlog that accumulated in the three months ended March 31, 2019

that we were unable to ship previously due to our former third-party sterilizer equipment failures. Those large shipments did

not recur during the three months ended June 30, 2020. In addition, there was an 82.4% decrease in sales volume of MGuard Prime

EPS, from $238,000 during the three months ended June 30, 2019, to $42,000 during the three months ended June 30, 2020, mainly

due to similar reasons as mentioned above.

company recorded a gross loss for the quarter ended June 30, 2020 of $120,000, compared to a gross profit of $442,000 for the

same period in 2019. This decrease in gross profit resulted primarily from a $448,000 decrease in revenues (as described above),

less the related material and labor costs, and a decrease following a receipt of $135,000 compensation received in the quarter

ended June 30, 2019 from our former third-party sterilizer for the delays related to the product sterilization interruption during

the three months ended March 31, 2019, which did not reoccur in the three months ended June 30, 2020, offset by a $21,000 decrease

in miscellaneous expenses. Gross margin (gross profits as a percentage of revenue) decreased to (38.3)% during the three months

ended June 30, 2020 from 32.6% during the three months ended June 30, 2019, driven by the reasons mentioned above.

operating expenses for the quarter ended June 30, 2020 were $2,326,000, a decrease of 11.4% compared to $2,625,000 for the same

period in 2019. This decrease was primarily due to a reduction of $382,000 in clinical expenses associated with CGuard EPS, mainly

related to the IDE approval process, $235,000 in compensation related to temporary salary reductions due to the immediate impact

of COVID-19 on cash flow, and $82,000 of miscellaneous expense reductions offset by an increase of $400,000 due to a settlement

agreement with the underwriter of our prior offerings.

expenses for the quarter ended June 30, 2020 were $34,000 compared to $23,000 for the same period in 2019. Net loss for the second

quarter of 2020 totaled $2,480,000, or $0.20 per basic and diluted share, compared to a net loss of $2,206,000, or $1.59 per basic

and diluted share, for the same period in 2019.

the six months ended June 30, 2020, revenue decreased by $422,000, or 23.9%, to $1,347,000, from $1,769,000 during the six months

ended June 30, 2019. This decrease was predominantly driven by a 16.8% decrease in sales volume of CGuard EPS from $1,492,000

during the six months ended June 30, 2019, to $1,242,000 during the six months ended June 30, 2020, mainly due to the postponement

of procedures with CGuard EPS, which are generally scheduled or non-emergency procedures, as hospitals shifted resources to patients

affected by COVID-19. In addition, there was a 62.1% decrease in sales volume of MGuard Prime EPS from $277,000 during the six

months ended June 30, 2019, to $105,000 during the six months ended June 30, 2020, mainly due to the impact of COVID-19, as mentioned

the six months ended June 30, 2020, gross profit decreased by $194,000, or 52.6%, to $175,000 from $369,000 for the same period

in 2019. This decrease in gross profit resulted primarily from a $225,000 decrease in revenues (as mentioned above), less the

related material and labor costs and a $61,000 increase in write-offs driven by a non-recurring component supply issue. This decrease

was partially offset by a decrease of $69,000 of expenses related to upgrades made to our production facilities during

the six months ended June 30, 2019, which did not reoccur during the six months ended in June 30, 2020 and a decrease of $23,000

in miscellaneous expenses during the six months ended June 30, 2020. Gross margin (gross profits as a percentage of revenue) decreased

to 13.0% during the six months ended June 30, 2020 from 20.9% during the six months ended June 30, 2019, driven by the reasons

operating expenses for the six months ended June 30, 2020 were $4,642,000, a decrease of 18.3% compared to $5,682,000 for the

same period in 2019. This decrease was primarily due to a reduction of $710,000 in clinical expenses associated with CGuard EPS,

mainly related to the IDE approval process, $354,000 due to settlement expenses that were paid to a former service provider pursuant

to a settlement agreement during the six months ended June 30, 2019, $235,000 in compensation expenses, primarily related to temporary

salary reductions due to the immediate impact of COVID-19 on cash flow, and $141,000 of miscellaneous expense reductions offset

by an increase of $400,000 due to a settlement agreement with the underwriter of our prior offerings.

income for the six months ended June 30, 2020 was $9,000 compared to $100,000 of financial expenses for the same period in 2019.

Net loss for the six months ended June 30, 2020 totaled $4,458,000, or $0.52 per basic and diluted share, compared to a net loss

of $5,413,000, or $4.86 per basic and diluted share, for the same period in 2019.

of June 30, 2020, cash and cash equivalents were $13,861,000 compared to $5,514,000 as of December 31, 2019.

Call and Webcast Details

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

management's formal remarks, there will be a question and answer session. Participants are asked to pre-register for the

call through the following link: http://dpregister.com/10146840. Please 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: 1-866-777-2509 (domestic) or 1-412-317-5413 (international). All callers should dial in

approximately 10 minutes prior to the scheduled start time and ask for the InspireMD call. The conference call will also be available

through a live webcast, which can be accessed through the following link: https://services.choruscall.com/links/nspr200805.html

link is also available through the company's website at 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 November 4, 2020 at the

above links. A telephonic replay of the call will be available through August 19, 2020 and may be accessed by calling 1-877-344-7529

(domestic) or 1-412-317-0088 (international) and using access code 10146840.

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