InspireMD Reports Financial Results for the Third Quarter Ended

Reports Financial Results for the Third Quarter Ended September 30, 2016

Company to Host Conference Call Today at 4:30pm ET -

MA - November 14, 2016 - InspireMD, Inc. (NYSE MKT: NSPR, NSPR.WS) ("InspireMD" or the "Company"),

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

and operating results for the third quarter and nine months ended September 30, 2016, and provided a business update.

have been very active these last few months building a foundation for commercial, corporate, and regulatory success, and executing

our strategy for realizing the value of our lead product, the CGuard Embolic Prevention System. There continues to be a

growing body of data on CGuard, including recent data published in the Journal of Endovascular Therapy and long term follow-up

data presented at the Transcatheter Cardiovascular Therapeutics (TCT) 2016 scientific symposium. These clinical data continue

to showcase the benefits of this innovative device, including long-term reduction of post-procedural embolization, resulting in

less complications for patients," said James Barry, PhD, Chief Executive Officer of InspireMD. "These important data

will help to support our marketing efforts as we look to expand our sales into new geographies and to grow sales in existing areas.

Reinforced by the key addition of Agustin Gago as the Company's new Chief Commercial Officer and plans for an IDE submission

in the United States in 2017, InspireMD is poised for growth on several fronts in the coming quarters."

/ CLINICAL / PRODUCT DEVELOPMENT

Commercial AND REGULATORY MILESTONES

Quarter 2016 Financial Results

for the third quarter ended September 30, 2016 was $469,000 compared to $632,000 during the same period in 2015. The decrease

was primarily the result of 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 patients. There was no material change in the sales of CGuard

EPS, the Company's carotid product.

Company's gross profit for the quarter ended September 30, 2016 was $31,000 compared to $89,000 for the same period in 2015.

The decrease in gross profit was largely attributable to a decrease in product revenues and an increase in expenses related to

the underutilization of our manufacturing resources, offset by a decrease in labor and material costs attributable to lower revenues.

operating expenses for the quarter ended September 30, 2016 were $1,801,000, a decrease of 48.5% compared to $3,500,000 for the

same period in 2015. This decrease was primarily due to a reduction of compensation related expenses, consultant fees and other

savings associated with our ongoing cost reduction plan.

loss from operations for the quarter ended September 30, 2016 was $1,770,000, a decrease of 48.1% compared to a loss of $3,411,000

for the same period in 2015.

the quarter ended September 30, 2016, there was no material change in financial expenses compared to the same period in 2015.

net loss for the quarter ended September 30, 2016 totaled $2.0 million, or $0.86 per basic and diluted share, compared to a net

loss of $3.6 million, or $11.93 per basic and diluted share, in the same period in 2015.

Months Ended September 30, 2016 Financial Results

for the nine months ended September 30, 2016 was $1,572,000 compared to $1,794,000 during the same period in 2015. The decrease

was predominantly driven by 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 patients. This decrease was partially offset by an increase in

sales of $415,000 of CGuard EPS.

Company's gross profit for the nine months ended September 30, 2016 was $158,000 compared to a gross loss of $160,000 for

the same period in 2015. This increase in gross profit was largely attributable to a decrease of write-offs of MGuard Prime

EPS inventory and a decrease in labor and material costs attributable to lower revenues, offset by expenses related to the underutilization

of our manufacturing resources and a decrease in product revenues.

operating expenses for the nine months ended September 30, 2016 were $6,116,000, a decrease of 47.8% compared to $11,714,000 million

for the same period in 2015. This decrease was primarily due to a reduction of compensation related expenses, restructuring and

impairment costs, clinical and development expenses and other savings associated with our ongoing cost reduction plan.

loss from operations for the nine months ended September 30, 2016 was $5,958,000, a decrease of 49.8% compared to a loss of $11,874,000

for the same period in 2015.

expenses for the nine months ended September 30, 2016 were $638,000, a decrease of 25.5% compared to the same period in 2015.

This decrease was primarily due to a reduction in interest expense of our outstanding loan.

net loss for the nine months ended September 30, 2016 totaled $6,597,000, or $6.37 per basic and diluted share, compared to a

net loss of $12,731,000, or $47.13 per basic and diluted share, in the same period in 2015.

and Cash Equivalents

of September 30, 2016, cash and cash equivalents were $10,468,000, compared to $3,257,000 as of December 31, 2015.

company has scheduled a conference call to discuss third quarter 2016 financial results for today at 4:30 pm Eastern Time. To

participate in the conference call, please dial 866-652-5200 (United States) or 412-317-6060 (International) and request the InspireMD

call. A live webcast will be available in the Investor Relations section of the Company's website or by clicking here.

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

archive of the webcast will be available approximately two hours following the call and will be accessible in the Investor Relations

section of the Company's website or by clicking here. A dial-in replay of the call will also be available to those

interested until November 28, 2016. To access the replay, dial 877-344-7529 (United States) or 412-317-0088 (International) and

enter code 10095759.

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 cardiac events.

intends to pursue applications of this MicroNet 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 and certain warrants

are quoted on the NYSE MKT under the ticker symbol NSPR.WS.

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.

STATEMENTS OF OPERATIONS (1)

dollars in thousands, except per share data)

dollars in thousands)