SANUWAVE HEALTH REPORTS SECOND QUARTER 2019

SANUWAVE HEALTH REPORTS SECOND QUARTER 2019 FINANCIAL

SUWANEE, GA, August 15, 2019 - SANUWAVE Health,

Inc. (OTCQB: SNWV) reported

financial results for the three months ended June 30, 2019 with the

SEC on Wednesday, August 14, 2019. The Company will also host a

conference call today, August 15, 2019, 2019 at 9:00 a.m. Eastern

Highlights from the second quarter and last few weeks:

Placed 36 dermaPACE Systems

in the United States, exceeding expectation of 35 devices by end of

second quarter. On track to reach 65 by end of third quarter and

change in reimbursement status leads to adding 10 new states to the

strategic growth plan. Accelerating placement plan by one full

abstracts, symposium, and posters at 5 conferences in second

on completing two perfusion studies and one international Diabetic

Foot Ulcer (DFU) treatment study.

Two peer review articles published in Q2:

Focused shockwave therapy in diabetic foot ulcers: secondary

endpoints of two multicentre randomized controlled trials by

Robert Galiano M.D, Robert Snyder, DPM, Perry Mayer MB, Oscar

Alvarez PhD, Lee C. Rogers DPM in the June 2019 issue of the

Journal of Wound Care and

Extended Extracorporeal Shockwave Therapy for Chronic

Diabetic Foot Ulcers: A Case Series by Wen-Yi Chou, MD,

Ching-Jen Wang, MD, Jai-Hong Cheng, PhD, Jen-Hong Chen, MD,

Chien-Chang Chen, MD and Yur-Ren Kuo, MD in the May 2019 issue of

130 patients treated

clinicians certified to use and treat with dermaPACE

initial procedural revenue in Q3.

SANUWAVE's focus during 2019 remains placing devices

with qualified clinicians in fifteen target states. We recently

added New York, Illinois, Massachusetts, Vermont, Rhode Island, New

Hampshire, Maine, Connecticut, Minnesota, and Wisconsin to our

targeted markets due to a change in reimbursement policy put forth

by National Government Services (NGS). We exceeded our goal for

placements in the second quarter and are on pace to achieve our

goal for the third quarter. Second quarter revenue was lower due to

$150,000 in license fees which occurred in 2018 which were not

included in 2019 numbers. License fees tend to be one time in

nature and lumpy and the timing is difficult to predict. Revenue

growth is expected to accelerate dramatically later in the year as

devices move from placement to revenue producing. We are

being very deliberate and balanced on this initial roll out, and

once we gain reimbursement coverage in specific markets, we will

then accelerate growth in those geographies, stated Kevin

SANUWAVE President, Shri Parikh comments, We are very

encouraged by the success we are having with clinicians and

patients. Over the past few busy traveling weeks I've had the

pleasure to meet with many clinical and economic customers, as well

as patients, and the response on the experience with our technology

has been terrific. We are excited share many of these testimonials

with you on our newly improved website in the near future. Once we

achieve reimbursement standards in focused markets, our business

model allows for a rapid expansion. The NGS announcement yesterday

redirected our immediate attention on the northeast and Midwest

markets. The team is focused on placing devices within this NGS

market, helping to rapidly begin recognizing revenue. Our top focus

remains appropriate customer placements for DFU treatments, which

will lead to revenue growth as we exit 2019 and throughout

Goals for 2019 and update on progress

dermaPACE system placements and 300 certified users

at end of Q2, 65 by Q3, and 110 by year end

certified users on track for over 300 by year end

with at least 10 million covered lives for insurance

7 million lives allows SANUWAVE to achieve this target

2-3 domestic clinical studies. On track with 2 perfusion studies

3-4 new countries. On track to exceed this goal.

additional advisors to our scientific board. On track for additions

other key senior management positions. Continuous process with

2019 sets the stage for SANUWAVE to shift from a clinical research

company to a rapidly growing commercialization company. The

process involves placing devices, training clinicians, gaining

reimbursement, and supporting the infrastructure with more clinical

research, published articles, and case studies. The method

will allow SANUWAVE to achieve the goal of delivering a dermaPACE

System anywhere and everywhere a DFU is treated. This allows

SANUWAVE to accomplish the vision of providing a positive impact on

life and the environment, one shock at a time.

Second Quarter Financial Results

for the three months ended June 30, 2019 were $316,976, compared to

$453,210 for the same period in 2018, a decrease of $136,234, or

30%. Revenue resulted primarily from sales in Europe of our

orthoPACE devices and related applicators and sales in the United

States of our dermaPACE applicators. The decrease in revenue for

2019 is primarily due to a decrease in sales of new and refurbished

applicators in Asia/Pacific and the European Community and lower

upfront international distribution fees, as compared to the prior

year. This is partially offset by higher device sales in the United

States and Asia/Pacific.

expenses for the three months ended June 30, 2019 were $2,150,610,

compared to $2,408,314 for the same period in 2018, a decrease of

$257,704, or 11%. Research and development expenses decreased by

$21,480. The decrease was due to a reclassification of employees

and related costs from research and development to general and

administrative in 2019. This is partially offset by an increase in

contracting for temporary services and increased study expenses

related to our new dosage study in Poland. Selling and marketing

expenses increased by $248,782. The increase was due to an increase

in hiring of trainers and salespeople and increased travel expenses

for placement and training related to the commercialization of

dermaPACE. General and administrative expenses decreased by