NeuroMetrix Completes Private Placement raising $18.7 million Waltham, MA

NeuroMetrix Completes

Private Placement raising $18.7 million

Waltham, MA September 10,

2009, NeuroMetrix, Inc. (Nasdaq:NURO), today announced that is has

completed its private placement of common stock and warrants. Gross proceeds from the offering were

approximately $18.7 million. The primary

use of the capital will be to expand its direct US sales force, increase its

international presence, fund certain clinical outcome studies, advance its lead

potassium channel blocker compound to a Phase I milestone, as well as for other

general working capital purposes

The company issued an

aggregate of 8,816,521 newly-issued shares of common stock and warrants to

purchase up to 8,792,726 additional shares of common stock (including warrants

issued to the placement agents).

NeuroMetrix expects to receive net proceeds of approximately $17.3

million after deducting placement agent fees and other offering expenses.

The financing was led by

Deerfield Management, an existing investor, with participation by Cummings Bay

Advisors, Delphi Ventures, Great Point Partners, Gruber & McBaine

Capital Management, New Enterprise Associates, and Symmetry Capital Management.

In connection with the

financing, NeuroMetrix has agreed, subject to certain terms and conditions, to

file a registration statement under the Securities Act covering the

registration of the common stock and warrants acquired at closing within 45

Canaccord Adams Inc.

acted as placement agent and Ladenburg Thalmann (NYSE Amex: LTS) acted as

co-agent for the transaction. Honigman

Miller Schwartz and Cohn LLP served as legal advisor to NeuroMetrix in the

This press release does

not and shall not constitute an offer to sell or the solicitation of any offer

to buy any of the securities.

information, please refer to NeuroMetrix s current report on Form 8-K

filed with the Securities and Exchange Commission with respect to this

science-based health care company transforming patient care through

neurotechnology. We provide innovative products for preservation and

restoration of nerve and spinal cord function, and pain control. To date, our

focus has been primarily on the assessment of neuropathies. Neuropathies affect

the peripheral nerves and parts of the spine and are frequently caused by or

associated with carpal tunnel syndrome, diabetes, sciatica, and other clinical

disorders. We market systems for the performance of nerve conduction studies

and needle electromyography procedures. Our product pipeline includes a system

designed to deliver pharmacologic agents such as anesthetics and

corticosteroids in close proximity to nerves for regional anesthesia, pain

control and the treatment of focal neuropathies. We are also developing devices

and pharmaceutical agents to treat spinal cord injuries. For more information,

visit http://www.neurometrix.com.

The statements contained

in this press release include forward-looking statements within the meaning of Section 27A

of the Securities Act of 1933, as amended, and Section 21E of the

Securities Exchange Act of 1934, as amended, including, without limitation,

statements regarding NeuroMetrix s or its management s expectations, hopes,

beliefs, intentions or strategies regarding the future. The words believe,

may, will, estimate, continue, anticipate, intend, expect,

plan, hope and similar expressions may identify forward-looking statements,

but the absence of these words does not mean that a statement is not

forward-looking. The forward-looking statements contained in this press release

are based on NeuroMetrix s current expectations and beliefs concerning future

developments and their potential effects on it. There can be no assurance that

future developments affecting NeuroMetrix will be those that NeuroMetrix has

anticipated. These forward-looking statements involve a number of risks,

uncertainties (some of which are beyond NeuroMetrix s control) or other

assumptions that may

cause actual results or

performance to be materially different from those expressed or implied by these

forward-looking statements. These risks and uncertainties include, but are not

limited to, risks associated with: reimbursement by third party payers to the

Company s customers for procedures performed using the NC-stat System and the

ADVANCE System, including the AMA CPT Editorial Panel process and the risk that

the reimbursement amount under any new CPT code for nerve conduction studies

performed with pre-configured electrode arrays may be lower than the

reimbursement amount under existing CPT codes for nerve conduction studies;

obtaining necessary regulatory approvals or clearances, including the pending

510(k) filing with the United States Food and Drug Administration ( FDA )

relating to portions of the onCall Information System that are currently in use

for the NC-stat System; plus factors described under the heading Item 1A. Risk

Factors in the Company s Annual Report on Form 10-K for the fiscal year

ended December 31, 2008 or described in the Company s other public

filings. Should one or more of these risks or uncertainties materialize, or

should any of NeuroMetrix s assumptions prove incorrect, actual results may

vary in material respects from those projected in these forward-looking

statements. NeuroMetrix undertakes no obligation to update or revise any

forward-looking statements, whether as a result of new information, future

events or otherwise, except as may be required under applicable securities

Joseph A. Calo, Acting CFO