NeuroMetrix Reports Q3 2013 Results Progress in Building Broad Distribution Channel for SENSUS Pain Management System

NeuroMetrix Reports Q3 2013 Results

Progress in Building Broad Distribution

Channel for SENSUS Pain Management System

WALTHAM, Mass., October 23, 2013 (BUSINESS WIRE) -- NeuroMetrix,

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

management of the neurological complications of diabetes, today reported business and financial highlights for the third

quarter ended September 30, 2013.

The Company is 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.

"SENSUS is gaining attention among key national distribution

companies who see the clinical and market potential for a non-narcotic, non-addictive pain relief option," said Shai N. Gozani,

M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. "Although the engagement process takes time, we are encouraged

by our recently-announced partnerships with Diabetes Care Club and OsteoArthritis Centers of America. Our distributor pipeline

is active and expanding. We continue to be focused on building a sound distribution foundation capable of accelerating SENSUS revenues

in 2014 and beyond."

The Company reported its financial

results for the third quarter of 2013. Total revenues were $1.3 million compared with $1.8 million for the third quarter of 2012.

Gross profit for the third quarter of 2013 was 56.0 percent of total revenues compared to 55.0 percent of total revenues in the

third quarter of 2012. Operating expenses for the third quarter of 2013 were $2.3 million compared to $3.6 million in the

third quarter of 2012. The Company recognized other income of $0.9 million in the third quarter of 2013 from the change in value

of outstanding common stock warrants. Net loss for the third quarter of 2013 was $0.7 million, or $0.26 per share compared to a

net loss of $2.6 million for the third quarter of 2012, or $1.24 per share. NeuroMetrix reported net cash usage of $1.8 million

in the third quarter of 2013 and ended the period with cash resources of $7.8 million. Per share amounts have been adjusted for

the effects of the February 2013 reverse stock split.

For the nine month period ended September 30, 2013, the Company

reported revenues of $3.9 million and a net loss of $4.3 million, or $2.13 per share. In the comparable nine month period ended

September 30, 2012, the Company recorded revenues of $6.1 million and a net loss of $8.1 million, or $4.37 per share.

Company to Host Live Conference Call and Webcast

NeuroMetrix management will host a conference call today,

October 23, 2013 at 8:00 a.m., Eastern time. To access the call, dial 866-318-8616 (domestic),

or 617-399-5135 (international). The confirmation code is 45881864. 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 two weeks starting two hours after the call by dialing 888-286-8010 (domestic) or 617-801-6888

(international), and the confirmation code is 10333915.

NeuroMetrix is a medical device company that develops and

markets home use and point-of-care devices for the treatment and management of chronic pain, peripheral neuropathies, and associated

neurological disorders. The Company is presently focused on 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. The company also markets the 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 SENSUS and NC-stat DPNCheck, 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

SENSUS pilot programs with national distribution partners 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