InspireMD Reports Financial Results

InspireMD Reports Financial Results

for the Third Quarter ended September 30, 2014

Master II 30 day data to be presented

December 15th at the ICI Meeting 2014, Tel-Aviv

Announced first pre-clinical implant

with partner DES platform

BOSTON, MA - November 12, 2014 - InspireMD,

Inc. (NYSE MKT: NSPR) ("InspireMD" or the "Company"), a leader in stent embolic protection systems

("EPS"), today announced its financial and operating results for the third quarter, ended September 30, 2014.

Alan Milinazzo, CEO of InspireMD, commented, "The third

quarter was a commercial turning point for the company. With the European regulatory approvals in hand we have put the Voluntary

Field Action (VFA) behind us and started shipping MGuard Prime back into multiple key international markets. Further, the strong

CARENET data reported in September provides an excellent platform for our initial CGuard selling activities."

Mr. Milinazzo concluded, "Subsequent to the end of the

third quarter, we successfully completed a capital raise for $8.1 million in gross proceeds. This cash infusion is expected to

be sufficient to support key commercial milestones, including advancing development of the Company's proprietary DES platform.

Our progress in this critical development program is highlighted today with our announcement of the first pre-clinical product

implants being successfully completed."

Recent Operating Highlights:

REGULATORY / CLINICAL / PRODUCT DEVELOPMENT

Quarter Ended September 30, 2014 Financial

Revenue for the quarter ended September

30, 2014 decreased $1.3 million to $0.3 million compared to $1.6 million during the same period in 2013. The 2014 period included

an expected decline in sales volume associated with the temporary stoppage of sales activities for the MGuard Prime EPS

following our voluntary field action.

The Company reported a gross loss for

the quarter ended September 30, 2014 of $0.1 million, a decrease of 109.5% compared to a gross profit of $0.8 million for the

same period in 2013. The loss was largely attributable to the impact of the VFA on product revenues.

Total operating expenses for the quarter

ended September 30, 2014 were $6.4 million, an increase of 36.7% compared to $4.7 million for the same period in 2013. This increase

was primarily due to higher research and development expenses attributable to expenditures in sales and marketing, as the Company

increased its sales efforts in key European countries and clinical trial and development expenses associated with our CGuardTM

The loss from operations for the quarter

ended September 30, 2014 was $6.5 million, an increase of 66.8% compared to a loss of $3.9 million for the same period in 2013.

Financial expenses for the quarter ended

September 30, 2014 increased 449.1% to $0.3 million from $0.1 million during the same period in 2013. The increase in financial

expenses resulted primarily from an increase in amortization and interest expenses relating to our loan.

The net loss for the quarter ended September

30, 2014 totaled $6.8 million, or $0.20 per basic and diluted share, compared to a net loss of $4.0 million, or $0.12 per basic

and diluted share, in the same period in 2013.

Non-GAAP net loss for the quarter ended

September 30, 2014 was $5.7 million, or $0.16 per basic and diluted share, an increase of 89.7% compared to a non-GAAP net loss

of $3.0 million, or $0.09 per basic and diluted share, for the same period in 2013. The non-GAAP net loss for the quarter ended

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

30, 2013 primarily excludes $0.9 million in share-based compensation expenses and $0.1 million in non-cash financial expenses.

Nine Months Ended September 30, 2014

Revenue for the nine months ended September

30, 2014 decreased $2.6 million to $1.9 million compared to $4.6 million during the same period in 2013. The 2014 period included

a decline in sales volume associated with the temporary stoppage of sales activities for the MGuard Prime EPS following

Gross profit for the nine months ended

September 30, 2014 totaled $0.4 million, a decrease of 83.1%, compared to $2.3 million for the same period in 2013. This decrease

in gross profit was attributable to the impact of the VFA, which included a decrease in revenues as well as $0.4 million in expenses

related to the modification of the MGuard Prime EPS.

Total operating expenses for the nine

months ended September 30, 2014 were $19.6 million, an increase of 44.2%, compared to $13.6 million for the same period in 2013.

This increase was primarily due to higher research and development expenses attributable to the MASTER II trial, clinical trial

and development expenses associated with our CGuardTM EPS product and expenditures in sales and marketing, as the Company

increased its sales efforts in key European countries.

The loss from operations for the nine

months ended September 30, 2014 was $19.3 million, an increase of 70.2%, compared to a loss of $11.3 million for the same period

Financial expenses for the nine months

ended September 30, 2014 decreased 91.6% to $1.1 million from $12.5 million during the same period in 2013. The decrease in financial

expenses resulted primarily from $9.9 million of non-cash effects in the nine months ended September 30, 2013 related to the conversion

and repayment of our convertible debentures in April 2013, as well as $1.5 million of non-cash associated with the issuance of

certain shares of common stock without consideration in satisfaction of anti-dilution rights during this period. No such expense

occurred during the nine months ended September 30, 2014 2014.

The net loss for the nine months ended

September 30, 2014 totaled $20.3 million, or $0.59 per basic and diluted share, compared to a net loss of $23.8 million, or $0.86

per basic and diluted share, in the same period in 2013.

Non-GAAP net loss for the nine months

ended September 30, 2014 was $17.1 million, or $0.50 per basic and diluted share, an increase of 107.7% compared to a non-GAAP

net loss of $8.3 million, or $0.30, for the same period in 2013. The non-GAAP net loss for the nine months ended September 30,

2014 primarily excludes $3.2 million of share-based compensation. The non-GAAP net loss for the nine months ended September 30,

2013 primarily excludes $12.2 million in non-cash financial expenses and $3.3 million in share-based compensation expenses.

Cash and Cash Equivalents

As of September 30, 2014, cash and cash

equivalents were $5.0 million, compared to $17.5 million as of December 31, 2013.

The Company reported that subsequent to

the quarter's close, it successfully completed a gross $8.1 million financing. InspireMD said it believes that these enhanced

cash resources should be sufficient to achieve key commercial milestones, including advancing development of the Company's

proprietary DES platform as well as sales ramps of its two commercial products, MGuard and CGuard EPS.

Investor Conference Call

The Company will host a conference call

at 4:30 p.m. ET on Wednesday, November 12th to review its financial results and business outlook. Participants should

call (877) 407-0784 (United States) or (201) 689-8560 (International) and request the InspireMD call or provide confirmation code:

13595115. A live webcast of the call will also be available on the Investor Relations section of the Company's website at

www.inspire-md.com/site_en/for-investors. 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 www.inspire-md.com/site_en/for-investors for a limited time. A dial-in replay of the call will also be available

to those interested until November 26, 2014. To access the replay, dial (877) 870-5176 (United States) or (858) 384-5517 (International)

and enter code: 13595115.

About InspireMD, Inc.

InspireMD seeks to utilize its proprietary MGuard with

MicroNet 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 MicroNet technology

in coronary, carotid (CGuard ) and peripheral artery procedures. InspireMD's common stock is quoted on the NYSE MKT under

the ticker symbol NSPR.