Stereotaxis Reports 2018 Second Quarter Financial Results Progress on strategic internal innovation and external collaborations Continued growth in recurring revenue Positive cash flow from operations Reaffirming 2018 ex

Reports 2018 Second Quarter Financial Results

LOUIS, MO, Aug. 7, 2018 - Stereotaxis, Inc. (OTCQX: STXS), the global leader in innovative robotic technologies for

the treatment of cardiac arrhythmias, today reported financial results for the second quarter ended June 30, 2018.

second quarter was notable for the strategic agreements announced with Johnson & Johnson's Biosense Webster and with

Acutus Medical. These agreements are important parts of our broader strategic innovation initiative, which continues to advance

both internally and in collaboration with others," said David Fischel, Chairman and CEO.

recurring revenue growth in the quarter represents the fourth consecutive quarter of year-over-year growth, putting us on track

to achieve record recurring revenue this year. Our commercial focus remains on developing the institutional infrastructure and

processes to support electrophysiologists build successful robotic ablation practices."

are simultaneously investing in our future and enhancing our capabilities while being financially disciplined and attentive to

shareholder value. Consistent with our previous guidance, our cash balance increased during the second quarter."

increase in quantity and quality of peer-reviewed clinical literature supporting our technology continued in the second quarter.

Twenty-four publications have showcased our technology year-to-date. A recent publication in the International Journal of Cardiology

by Dr. Qiu et al from Ruijin Hospital in Shanghai compared robotic magnetic navigation to manual catheters in 152 patients suffering

from premature ventricular contractions. No complications occurred in patients treated robotically, a stark contrast to the 4.5%

rate of major adverse events in patients treated with manual catheters. Patients treated robotically were exposed to 69% less

radiation and showed a trend towards higher acute procedure success. Procedure times were equivalent between both arms."

Quarter and First Half 2018 Financial Results

for the second quarter of 2018 totaled $7.6 million. Recurring revenue was $7.2 million in the second quarter, up 9% from $6.6

million in the prior year quarter. Recurring revenue for the first half of 2018 of $14.2 million was up 6% from the first half

of 2017. System revenue in the second quarter was $0.3 million, down from $1.8 million in the prior year quarter. System revenue

in the prior year quarter primarily reflected the shipment of a Niobe system to an international distributor.

margin in the quarter was $6.2 million, or 82% of revenue, compared to $6.3 million and 74% of revenue in the second quarter of

2017. Operating expenses in the second quarter were $6.8 million, up from $6.7 million in the prior year quarter. Operating loss

and net loss in the second quarter were $(0.6) million.

cash flow in the second quarter was positive $0.4 million, compared to ($0.7) million in the year ago second quarter and ($2.0)

million in the first quarter of 2018. Free cash flow in the second quarter was positively impacted by the timing of receivable

collections, which negatively impacted the first quarter 2018. Negative free cash flow for the first half of 2018 was ($1.6) million,

compared to ($3.4) million in the first half of 2017.

Balance and Liquidity

June 30, 2018, Stereotaxis had cash and cash equivalents of $12.0 million, no debt, and $3.1 million in unused borrowing capacity

on its revolving credit facility, for total net liquidity of $15.1 million.

Year 2018 Expectations

Company is reaffirming its expectation of continued year-over-year recurring revenue growth throughout 2018. For the full year

2018, expected recurring revenue of approximately $28 million would represent the highest annual level of recurring revenue the

company has achieved in its history.

expenses are expected to moderately increase in the second half of 2018 driven by R&D spending on strategic innovation initiatives.

The benefits of these initiatives are expected to meaningfully contribute to revenue in 2019 and beyond. Stereotaxis' balance

sheet will allow the Company to deliver on its commercial and innovation initiatives over the coming years and reach profitability

without the need for additional financings.

will host a conference call and webcast today, August 7, 2018, at 10:00 a.m. Eastern Time. To access the conference call, dial

855-719-5012 (US and Canada) or 1-334-323-0522 (International) and give the participant pass code 1337116. Participants are asked

to call 5-10 minutes prior to the start time. To access the live and replay webcast, please visit the investor relations section

of the Stereotaxis website at www.stereotaxis.com.

is the global leader in innovative robotic technologies designed to enhance the treatment of arrhythmias and perform endovascular

procedures. Its mission is the discovery, development and delivery of robotic systems, instruments, and information solutions

for the interventional laboratory. These innovations help physicians provide unsurpassed patient care with robotic precision and

safety, improved lab efficiency and productivity, and enhanced integration of procedural information. Over 100 issued patents

support the Stereotaxis platform. The core components of Stereotaxis' systems have received regulatory clearance in the

United States, European Union, Japan, Canada, China, and elsewhere. For more information, please visit www.stereotaxis.com.

press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe",

"estimate", "project", "expect" or similar expressions. Forward-looking statements inherently

involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors

that would cause or contribute to such differences include, but are not limited to, the Company's ability to raise additional

capital on a timely basis and on terms that are acceptable, its ability to continue to manage expenses and cash burn rate at sustainable

levels, its ability to continue to work with lenders to extend, repay or refinance indebtedness, or to obtain additional financing,

in either case on acceptable terms, continued acceptance of the Company's products in the marketplace, the effect of global

economic conditions on the ability and willingness of customers to purchase its systems and the timing of such purchases, competitive

factors, changes resulting from healthcare reform in the United States, including changes in government reimbursement procedures,

dependence upon third-party vendors, timing of regulatory approvals, and other risks discussed in the Company's periodic

and other filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes

no obligation to update these statements for revisions or changes after the date of this release. There can be no assurance that

the Company will recognize revenue related to its purchase orders and other commitments in any particular period or at all because

some of these purchase orders and other commitments are subject to contingencies that are outside of the Company's control.

In addition, these orders and commitments may be revised, modified, delayed or canceled, either by their express terms, as a result

of negotiations, or by overall project changes or delays.

and Chief Executive Officer

prior year amounts have been reclassified to conform to the 2018 presentation.