NeuroMetrix Reports Q2 2013 Results Focused on Building Broad Distribution Channel for

NeuroMetrix Reports Q2 2013 Results

Focused on Building Broad Distribution

WALTHAM, Mass., July 25, 2013 (BUSINESS WIRE) -- NeuroMetrix,

Inc. (the "Company") (Nasdaq: NURO), a medical device company focused on the treatment of

the neurological complications of diabetes, today reported business and financial highlights for the second quarter ended

The Company is in the process of building a broad national distributional

channel for its SENSUS Pain Management System, which is a novel transcutaneous electrical nerve stimulator intended for treating

chronic pain. SENSUS is a convenient and wearable non-invasive device that offers physicians and their patients a non-narcotic

pain relief option as a complement to medications. The device is lightweight and can be worn during the day while remaining active,

or at night while sleeping. The Company believes it is the only transcutaneous electrical nerve stimulator designed specifically

for people with diabetes that suffer from chronic pain. The most common cause of such pain is painful diabetic neuropathy (PDN),

which affects up to 5 million people in the U.S. alone. The Company's business strategy is to develop widespread distribution

in the United States through multiple sales channels while expanding the market through complementary clinical indications.

Highlights for the second quarter include:

"We are building a broad commercial foundation for SENSUS

based on national distribution and widespread product awareness," said Shai N. Gozani, M.D., Ph.D., President and Chief Executive

Officer of NeuroMetrix. "This is a deliberate process that will take time and require patience. We are encouraged by our

early success, as we have received interest from important potential distribution partners and are working with them to develop

and launch pilot partnerships during the second half of the year. These pilot programs will take time; however, adoption by one

or more of these national partners has the potential to rapidly expand SENSUS awareness and sales. To support this effort, we have

shifted sales and marketing resources to SENSUS that had previously been dedicated to our diagnostic device for diabetic peripheral

neuropathy, NC-stat DPNCheck."

The Company reported its financial

results for the second quarter of 2013. Total revenues were $1.2 million compared with $2.2 million for the second quarter of 2012.

Gross profit for the second quarter of 2013 was 56.8 percent of total revenues compared to 55.4 percent of total revenues in the

second quarter of 2012. Operating expenses for the second quarter of 2013 were $2.8 million compared to $4.0 million in

the second quarter of 2012. The Company recognized other income of $1.2 million in the second quarter of 2013 from the change in

value of the warrants issued in the equity offering during the second quarter of 2013. Net loss for the second quarter of 2013

was $1.3 million, or $0.92 per share compared to a net loss of $2.8 million for the second quarter of 2012, or $1.32 per share.

NeuroMetrix reported net cash usage of $1.9 million in the second quarter of 2013 and ended the period with cash resources of $9.6

million. Per share amounts have been adjusted for the effects of the February 2013 reverse stock split.

For the six month period ended June 30, 2013, the Company reported

revenues of $2.6 million and a net loss of $3.6 million, or $1.97 per share. In the comparable six month period ended June 30,

2012, the Company recorded revenues of $4.3 million and a net loss of $5.5 million, or $3.17 per share.

Company to Host Live Conference Call and Webcast

NeuroMetrix management will host a conference call today, July

25, 2013 at 8:00 a.m., Eastern time. To access the call, dial 866-510-0707 (domestic), or 617-597-5376

(international). The confirmation code is 18430936. The call will also be webcast and will be accessible from the Company's website

at http://www.neurometrix.com under the "Investor Relations" tab. A replay of the conference call will be available for

three months starting two hours after the call by dialing 888-286-8010 (domestic) or 617-801-6888

(international), and the confirmation code is 19088827.

NeuroMetrix is a medical device company that develops and markets

home use and point-of-care devices for the treatment of diabetic neuropathies, which affect over 50% of people with diabetes. If

left untreated, diabetic neuropathies trigger foot ulcers that may require amputation and cause disabling chronic pain. The annual

cost of diabetic neuropathies has been estimated at $14 billion in the United States. The company markets the SENSUS Pain

Management System for treating chronic pain, focusing on physicians managing patients with painful diabetic neuropathy and similar

peripheral neuropathies. The company also markets the NC-stat DPNCheck device, which is a rapid,

accurate, and quantitative point-of-care test for diabetic neuropathy. This product is used to detect diabetic neuropathy at an

early stage and to guide treatment. For more information, please visit http://www.neurometrix.com.

Safe Harbor Statement

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 the company's or management's expectations

relating to the adoption of NC-stat DPNCheck and SENSUS, our ability to build a successful business focused on diabetic peripheral

neuropathy, our hope of expanding our commercial sales channel of our diabetic neuropathy products and our hope that entering into

a SENSUS pilot program with a national distribution partner will rapidly expand SENSUS awareness and sales. While the company believes

the forward-looking statements contained in this press release are accurate, there are a number of factors that could cause actual

events or results to differ materially from those indicated by such forward-looking statements, including, without limitation,

our estimates of future performance, and our ability to successfully develop, receive regulatory clearance or approval, commercialize

and achieve market acceptance for any of our products. There can be no assurance that future developments will be those that the

company has anticipated. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including

those risks, uncertainties and factors referred to in the company's most recent Annual Report on Form 10-K as well as other

documents that may be filed from time to time with the Securities and Exchange Commission or otherwise made public. The company

is providing the information in this press release only as of the date hereof, and expressly disclaims any intent or obligation

to update the information included in this press release or revise any forward-looking statements.

SVP and Chief Financial Officer

Condensed Statements of Operations

Note: per share amounts have been

adjusted to reflect the Company's

1:6 reverse stock-split which

occurred on February 15, 2013.

Condensed Balance Sheets