PolyPid Provides Corporate Update and Reports Second Quarter 2023 Financial Results Reached Agreement with U.S. FDA on Design of SHIELD II Phase 3 Trial E valuating D-PLEX 100 for the Prevention of Abdominal Colorectal S

PolyPid Provides Corporate Update and Reports

Second Quarter 2023 Financial Results

Reached Agreement with U.S. FDA on Design of

SHIELD II Phase 3 Trial Evaluating D-PLEX100 for the Prevention of Abdominal Colorectal

Surgical Site Infections

Resumed Recruitment into SHIELD II Phase 3 Trial

Total of 20 centers in U.S., Europe and Israel

Expected to be Opened by End of Current Quarter

Conference Call Scheduled for Today at 8:30

PETACH TIKVA, Israel,

August 9, 2023 -- PolyPid Ltd. (Nasdaq:

PYPD) ("PolyPid" or the "Company"), a late-stage biopharma company aiming to improve surgical outcomes, today

provided a corporate update and reported financial results for the three and six months ended June 30, 2023.

Recent Corporate Highlights:

our agreement with the FDA on the design of the SHIELD II Phase 3 trial and the

subsequent resumption of the trial, our promising lead product candidate, D-PLEX100, is advancing as planned in the clinic,"

stated Dikla Czaczkes Akselbrad, PolyPid's Chief Executive Officer. "As we expect to have 20 centers open by the end of the

current quarter, we anticipate that the rate of enrollment will increase rapidly."

we are beginning to see the impact of our cost containment efforts," continued Ms. Czaczkes Akselbrad. "Despite a challenging

inflationary environment, we have generated over $1 million in cost savings year-to-date, and our net cash used in operating activities

decreased by 59% in the first six months of the year as compared to the first six months of 2022."

Financial results for three months ended June

Financial results for six months ended June

Balance Sheet Highlights

Conference Call Dial-In & Webcast Information:

SHIELD II (Surgical site Hospital acquired Infection prEvention

with Local D-PLEX) is a prospective, multinational, randomized, double blind Phase 3 trial designed to assess the efficacy and safety

of D-PLEX100 administered concomitantly with standard of care (SoC), which includes prophylactic systemic antibiotics,

compared to SoC alone arm, in the prevention of post abdominal-surgery incisional infection in patients undergoing surgeries with incisions

greater than 20 cm. The primary endpoint of the trial is measured by the proportion of subjects with either an SSI event as determined

by a blinded and independent adjudication committee, reintervention, or mortality for any reason within 30 days post-surgery. Patient

safety will be monitored for an additional 30 days. The trial will enroll patients in centers in the United States, Europe and Israel.

PolyPid Ltd. (Nasdaq: PYPD) is a late-stage biopharma company

aiming to improve surgical outcomes. Through locally administered, controlled, prolonged-release therapeutics, PolyPid's proprietary

PLEX (Polymer-Lipid Encapsulation matriX) technology pairs with Active Pharmaceutical Ingredients (APIs), enabling precise delivery of

drugs at optimal release rates over durations ranging from several days to months. PolyPid's lead product candidate D-PLEX100 is

in Phase 3 clinical trial for the prevention of abdominal colorectal surgical site infections. In addition, the Company is currently in

preclinical stages to test the efficacy of OncoPLEX for the treatment of solid tumors, beginning with glioblastoma.

For additional Company information, please visit http://www.polypid.com and

Forward-looking Statements

This press release contains "forward-looking statements"

within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as "expects," "anticipates,"

"intends," "plans," "believes," "seeks," "estimates" and similar expressions

or variations of such words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements

when it discusses its expectation to have 20 centers open in U.S., Europe and Israel by the end

of the current quarter and its anticipation that the rate of enrollment will increase rapidly thereafter, the timing of the unblinded

interim analysis, total recruitment time into the trial and top-line results, D-PLEX100 's potential

as an effective prophylactic drug against the most prevalent bacteria causing surgical site infections and the expected benefits from

cost containment efforts. Forward-looking statements are not historical facts, and are based upon management's current expectations,

beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed

in good faith. However, there can be no assurance that management's expectations, beliefs and projections will be achieved, and

actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements

are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the

forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to

the Company's reports filed from time to time with the Securities and Exchange Commission ("SEC"), including,

but not limited to, the risks detailed in the Company's Annual Report on Form 20-F filed on March 31, 2023. Forward-looking

statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to

reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking

information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements,

no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking

References and links to websites have been provided as a convenience,

and the information contained on such websites is not incorporated by reference into this press release. PolyPid is not responsible

for the contents of third-party websites.

INTERIM CONDENSED CONSOLIDATED

U.S. dollars in thousands

INTERIM CONDENSED CONSOLIDATED

U.S. dollars in thousands (except share

INTERIM CONDENSED CONSOLIDATED

STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except share and