NeuroMetrix Reports Q4 and Full Year 2013 Results

NeuroMetrix Reports Q4 and Full

WALTHAM, Mass., February 13, 2014 (BUSINESS WIRE) -- NeuroMetrix,

Inc. (the "Company") (Nasdaq: NURO), 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, today

reported business and financial highlights for the fourth quarter and year ended December 31, 2013.

The Company is capitalizing on research & development capabilities

and intellectual property to build a franchise which addresses major unmet medical needs. The company is primarily focused on the

most common complication of diabetes, diabetic peripheral neuropathy or DPN. If left untreated, DPN causes disabling chronic pain,

called painful diabetic neuropathy, triggers foot ulcers that may require amputation, and increases the risk of falls in the elderly.

The Company has two commercial products that address DPN and similar neurological disorders. SENSUSTM utilizes proprietary

wearable electrotherapy technology to provide non-narcotic relief from chronic pain, including painful diabetic neuropathy. DPNCheck

is a fast, accurate, and quantitative point-of-care test for DPN. The Company reported commercial progress with both product lines

"We are encouraged by progress with both SENSUS and DPNCheck,"

said Shai N. Gozani, M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. "DJO Global's decision to incorporate

SENSUS into their product portfolio speaks to the results of their market pilot and the opportunity they see for SENSUS in pain

therapy. Omron Healthcare is working closely with us on the Japan regulatory process while planning for DPNCheck launch in the

second quarter of 2014. Both DJO Global and Omron Healthcare bring considerable sales and marketing resources in their respective

markets and are an important part of the distribution foundation we are building at NeuroMetrix. They support our goal of accelerating

device placements and revenues in 2014 and beyond."

The Company reported its financial results for the fourth quarter

of 2013. Total revenues were $1.4 million compared with $1.5 million for the fourth quarter of 2012. Gross profit for the fourth

quarter of 2013 was 61.1 percent of total revenues compared to 55.6 percent in the fourth quarter of 2012. Operating expenses for

the fourth quarter of 2013 were $2.2 million compared to $2.7 million in the fourth quarter of 2012. The Company recorded a non-cash

charge of $2.3 million in the fourth quarter of 2013 related to changes during the period in the fair value of outstanding common

stock warrants. Net loss for the fourth quarter of 2013 was $3.7 million, or $0.87 per share. This compared to a net loss of $1.9

million for the fourth quarter of 2012, or $0.89 per share. NeuroMetrix reported net cash usage of $1.3 million in the fourth quarter

of 2013 and ended the period with cash resources of $9.2 million. Per share amounts have been adjusted for the effects of the February

2013 reverse stock split.

For the year ended December 31, 2013, the Company reported revenues

of $5.3 million and a net loss of $8.0 million, or $3.07 per share. During 2012, the Company recorded revenues of $7.6 million

and a net loss of $10 million, or $5.22 per share.

Company to Host Live Conference Call and Webcast

NeuroMetrix management will host a conference call today, February

13, 2014 at 8:00 a.m., Eastern time. To access the call in the United States, dial 866-515-2913and use the confirmation code 93917919.

Internationally, the conference call may be accessed by dialing 617-399-5127 and using the same confirmation code. 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 starting two hours after the call by dialing 888-286-8010,

domestically and 617-801-6888, internationally. The confirmation code to access the replay is 91113861. The replay will be available

for two weeks after the conference call.

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