InspireMD Reports Financial Results for the Third Quarter Ended

InspireMD Reports Financial Results for

the Third Quarter Ended September 30, 2015

BOSTON, MA - November 10,

2015 - InspireMD, Inc. (NYSE MKT: NSPR) ("InspireMD" or the "Company"),

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

and operating results for the third quarter ended September 30, 2015.

In its third full quarter of a strategic

transition into the carotid and neuro interventional markets utilizing its proprietary MicroNetTM technology, key activities

included the announced strategic distributor agreement with global interventional therapies company Penumbra, Inc., strengthened

intellectual property coverage, including the issuance of two US patents, and expanded regulatory footprint with CGuard approvals

for both Argentina and Colombia. In addition, InspireMD's development program for its neurovascular flow diverter platform

remains on track for pre-clinical results in December 2015 and CE Mark submission in 2H 2016. Broad collaboration discussions advanced

steadily facilitated by an external financial and strategic advisor engaged to assist in the review of various strategic alternatives.

Alan Milinazzo, CEO of InspireMD, commented,

"With 2015 being a transition year for InspireMD, we continue to execute on our strategic plan with clear focus and a sense

of urgency. We highlight progress made in recent months and look forward to sustainable growth in 2016. Feedback from the CGuardTM

launch remains positive, aided by both the CARENET and PARADIGM clinical data sets that have received prominent attention at major

clinical meetings this year. Recent approvals in Colombia and Argentina also allow us to bring this important technology to key

markets around the world as we balance investments in the business with disciplined cash management."

Mr. Milinazzo continued, "We are

pleased to note that our development efforts in the high value neurovascular field are tracking to expectations while we actively

advance discussions across indications that leverage our MicroNetTM technology. Finally, to ensure that we maximize

InspireMD shareholder value, we have engaged TM Asante Healthcare Partners as an outside strategic advisor to further our business

development activities."

Recent Operating Highlights:

REGULATORY / CLINICAL / PRODUCT DEVELOPMENT

Quarter Ended September 30, 2015 Financial

Revenue for the third quarter ended September

30, 2015 increased $0.3 million to $0.6 million compared to $0.3 million during the same period in 2014. The increase was predominately

driven by sales of $0.3 million of our new product CGuard EPS, our carotid product, which was launched in October 2014.

Sales of CGuard EPS during the three months ended September 30, 2015 were predominately driven by initial sales to our new

strategic distribution partner, Penumbra, Inc.

The company's gross profit for the quarter

ended September 30, 2015 was $0.1 million compared to a gross loss of $0.1 million for the same period in 2014. The improvement

of 217.1% was largely attributable to the increase in product revenues and a decrease of write-offs of inventory of MGuard

Prime EPS. These improvements in gross profit, however, were partially offset by an increase in labor and material costs attributable

Total operating expenses for the quarter

ended September 30, 2015 were $3.5 million, a decrease of 45.3% compared to $6.4 million for the same period in 2014. This decrease

was primarily due to a reduction of expenses related to MGuard Prime EPS's MASTER II trial, which was suspended in

October 2014, a decrease in compensation related expenses and other savings associated with our cost reduction plan.

The loss from operations for the quarter

ended September 30, 2015 was $3.4 million, a decrease of 47.4% compared to a loss of $6.5 million for the same period in 2014.

Financial expenses for the quarter ended

September 30, 2015 was $0.2 million, a decrease of 27.2% compared to the same period in 2014. This decrease was primarily due to

a decrease in interest expenses due to the reduction in principal of our outstanding indebtedness.

The net loss for the quarter ended September

30, 2015 totaled $3.6 million, or $0.48 per basic and diluted share, compared to a net loss of $6.8 million, or $1.96 per basic

and diluted share, in the same period in 2014.

net loss for the quarter ended September 30, 2015 was $2.8 million, or $0.36 per basic and diluted share, a decrease of 51.6% compared

to a non-GAAP net loss of $5.7 million, or $1.65 per basic and diluted share, for the same period in 2014. The non-GAAP net

loss for the quarter ended September 30, 2015 primarily excludes $0.6 million of share-based compensation and

$0.3 million of expense related to the impairment of the value of our royalties buyout option associated with MGuard Prime

EPS. The non-GAAP net loss for the quarter ended September 30, 2014 primarily excludes $1.1 million of share-based compensation.

Nine Months Ended September 30, 2015

Revenue for the nine months ended September

30, 2015 decreased $0.1 million to $1.8 million compared to $1.9 million during the same period in 2014. The 2015 period included

an expected decline in sales of MGuard Prime EPS associated with the trend of doctors increasingly using drug eluting stents

rather than bare metal stents in STEMI offset by sales of our new product CGuard EPS, which was launched in October 2014.

The sales of CGuard EPS during the nine months ended September 30, 2015 included initial sales to our new strategic distribution

partner, Penumbra, Inc. which commenced during the third quarter.

The company's gross loss for the nine months

ended September 30, 2015 was $0.2 million, a decrease of 141.0% compared to a gross profit of $0.4 million for the same period

in 2014. The decrease was largely attributable to an increase in labor and material costs attributable to higher costs for CGuard

EPS and write-offs of inventory due to the trend of increased usage of DES stents in STEMI patients, longer shelf life requirements

and the transition to the rapid exchange delivery system for CGuard from the over the wire platform.

Total operating expenses for the nine months

ended September 30, 2015 were $11.7 million, a decrease of 40.4% compared to $19.6 million for the same period in 2014. This decrease

was primarily due to a reduction of expenses related to MGuard's MASTER II trial, a decrease in compensation related expenses and

other savings associated with our cost reduction plan.

The loss from operations for the nine months

ended September 30, 2015 was $11.9 million, a decrease of 38.3% compared to a loss of $19.3 million for the same period in 2014.

Financial expenses for the nine months

ended September 30, 2015 decreased 18.6% to $0.9 million from $1.1 million during the same period in 2014. This decrease was primarily

due to a decrease in interest expenses due to the reduction in principal of our outstanding indebtedness.

The net loss for the nine months ended

September 30, 2015 totaled $12.7 million, or $1.89 per basic and diluted share, compared to a net loss of $20.3 million, or $5.93

per basic and diluted share, in the same period in 2014.

Non-GAAP net loss for the nine months ended

September 30, 2015 was $9.5 million, or $1.40 per basic and diluted share, a decrease of 44.7% compared to a non-GAAP net loss

of $17.1 million, or $5.00 per basic and diluted share, for the same period in 2014. The non-GAAP net loss for the nine months

ended September 30, 2015 primarily excludes $2.6 million of share-based compensation and $0.6 million of expense related to an

impairment of a royalties buyout asset. The non-GAAP net loss for the nine months ended September 30, 2014 primarily excludes $3.2

million of share-based compensation.

Cash and Cash Equivalents

As of September 30, 2015, cash and cash

equivalents were $6.5 million, compared to $6.3 million as of December 31, 2014.

Quarterly Conference Call Details

company has scheduled a conference call to discuss third quarter 2015 financial results for today at 8:30 AM Eastern. To participate

in the conference call, please dial (888) 243-4451 (United States) or (412)

542-4135 (International) and request the InspireMD call. A live webcast

of the call will also be available on the Investor Relations section of the Company's website at http://www.inspiremd.com/en/investors/investor-relations/.

Please allow 10 minutes prior to the call to visit this site to download and install any necessary audio software.

An archive of the webcast will be available

approximately two hours after completion of the live event and will be accessible on the Investor Relations section of the Company's

website at http://www.inspiremd.com/en/investors/investor-relations/ for a limited time. A dial-in replay of the call will also

be available to those interested until November 24, 2015. To access the replay, dial (877) 344-7529 (United States) or (412) 317-0088

(International) and enter code: 10075630.

About InspireMD, Inc.

InspireMD seeks to utilize its proprietary

MGuard with MicroNetTM technology to make its products the industry standard for embolic protection and to provide