Second Sight Reports First Quarter 2017 Financial Results SYLMAR, Calif.- (BUSINESS WIRE) - Second Sight Medical Products, Inc. (NASDAQ:EYES) ( Second Sight or the Company ), a developer, manufacturer and marketer of imp

Reports First Quarter 2017 Financial Results

SYLMAR, Calif.- (BUSINESS WIRE) - Second Sight Medical Products,

Inc. (NASDAQ:EYES) ("Second Sight" or "the Company"), a developer, manufacturer and marketer of implantable

visual prosthetics to provide some useful vision to blind patients, today reported financial results for the three-months ended

First Quarter 2017 and Recent Company Highlights:

"With a focus on execution and our Centers of Excellence ("COE")

strategy, we had strong implant volume during the first quarter of 2017, including eight implants in North America and are seeing

the momentum continue into the second quarter. We are pleased to have performed our first implants in three new centers and look

forward to adding more COEs throughout the year," stated Will McGuire, Chief Executive Officer of Second Sight.

"We remain committed to treating better-sighted individuals

and those who are blinded by causes other than Retinitis Pigmentosa ("RP") in order to expand our addressable market.

We are moving forward with the development and patient testing of innovative retinal stimulation techniques and will be submitting

clinical protocols in the UK and Germany to allow us to treat better-sighted individuals. Our R&D efforts remain on track for

the first human implant of our Orion I Cortical Visual Prosthesis ("Orion I") for direct cortical stimulation

planned for this year," added McGuire.

First Quarter 2017 Financial Results

Net sales in the first quarter of 2017 were $1.0 million compared

to $1.1 million in the first quarter of 2016, which represents revenue per implant of $72,000 in the first quarter of 2017

compared to $105,000 in the first quarter of 2016. Revenue was mainly impacted by the deferral of revenue recognition of two implants,

and no charge units that are sometimes given to centers as part of a sales arrangement, or in markets where centers are seeking

to gain patient experience while establishing reimbursement coverage.

Gross loss was $118,000 in the first quarter of 2017, compared

to a gross profit of $141,000 in the first quarter of 2016. The gross loss is due to lower revenue and higher cost of sales in

the first quarter of 2017 compared to the prior year. Cost of sales in the first quarter of 2017 included higher charges for unabsorbed

manufacturing costs due to the reduction of production activity compared to the prior year.

Total operating expenses in the first quarter of 2017 were $7.4

million, compared to $6.0 million in the first quarter of 2016, reflecting higher research and development costs and personnel-related

Net loss for the first quarter of 2017 was $7.5 million, or

$0.16 per share, compared to a net loss of $5.8 million, or $0.16 per share, in the prior year quarter. The Company recorded

non-cash charges of $268,000 and $946,000 during the first quarters of 2017 and 2016, respectively.

Non-GAAP adjusted net loss for the first quarter of 2017, excluding

non-cash charges, was $0.16 per share, compared to a non-GAAP adjusted net loss of $0.14 per share, in the first quarter of 2016.

As of March 31, 2017, Second Sight had $23.9 million in

cash, cash equivalents and investments. On March 6, 2017, the Company raised $19.7 million in net proceeds through the issuance

of Second Sight stock and warrants in a rights offering to existing shareholders as of February 10, 2017.

As previously announced, Second Sight management will host its first

quarter 2017 conference call as follows:

A replay of the conference call will be available for two weeks

after the call's completion by dialing (800) 633-8284 (U.S.) or (402) 977-9140 (International). The conference ID for

the replay is 21850167. The archived webcast will be available for 30 days via the aforementioned URL.

About the Argus II Retinal Prosthesis System

Second Sight's Argus II System provides electrical stimulation that

bypasses the defunct retinal cells and stimulates remaining viable cells inducing visual perception in individuals with severe

to profound Retinitis Pigmentosa. The Argus II works by converting images captured by a miniature video camera mounted on the patient's

glasses into a series of small electrical pulses, which are transmitted wirelessly to an array of electrodes implanted on the surface

of the retina. These pulses stimulate the retina's remaining cells, intending to result in the perception of patterns of light

in the brain. The patient must learn to interpret these visual patterns, having the potential to regain some visual function. The

Argus II was the first artificial retina to receive widespread approval, and is offered at approved centers in Canada, France,

Germany, Italy, Saudi Arabia, Spain, Taiwan, Turkey, United Kingdom, and the U.S.

Second Sight's mission is to develop, manufacture and market innovative

implantable visual prosthetics to enable blind individuals to achieve greater independence. Second Sight has developed and manufactures

the Argus II Retinal Prosthesis System. Second Sight is currently conducting a trial to test the safety and utility of the

Argus II in individuals with Dry Age-Related Macular Degeneration. Second Sight is also developing the Orion I Visual

Cortical Prosthesis that is intended to restore some vision to individuals who are blind due to many causes other than preventable

or treatable conditions. U.S. Headquarters are in Sylmar, CA, and European Headquarters are in Lausanne, Switzerland. For more

information, visit www.secondsight.com.

This press release contains forward-looking statements within the

meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange and Exchange Act of

1934, as amended, which are intended to be covered by the "safe harbor" created by those sections. All statements in

this release that are not based on historical fact are "forward looking statements." These statements may be identified

by words such as "estimates," "anticipates," "projects," "plans," or "planned,"

"seeks," "may," "will," "expects," "intends," "believes," "should"

and similar expressions or the negative versions thereof and which also may be identified by their context. All statements that

address operating performance or events or developments that Second Sight expects or anticipates will occur in the future are forward-looking

statements. While management has based any forward looking statements included in this release on its current expectations, the

information on which such expectations were based may change. Forward-looking statements involve inherent risks and uncertainties

which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors

including those risks and uncertainties described in the Risk Factors and in Management's Discussion and Analysis of Financial

Condition and Results of Operations sections of our Annual Report on Form 10-K as filed on March 16, 2017, and our other

reports filed from time to time with the Securities and Exchange Commission. We urge you to consider those risks and uncertainties

in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements,

which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or

undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect

any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement

Reconciliation to Non-GAAP Financial Measures

In addition to reporting all financial information required in accordance

with generally accepted accounting principles (GAAP), the Company is also reporting Non-GAAP net loss and Non-GAAP net loss per

share which are non-GAAP financial measures. Non-GAAP net loss and Non-GAAP net loss per share are not measurements of financial

performance under GAAP and should not be used in isolation or as a substitute or alternative to net income, operating income or

any other performance measure derived in accordance with GAAP, or as a substitute or alternative to cash flow from operating activities

or a measure of the Company's liquidity. In addition, the Company's definition of Non-GAAP net loss and Non-GAAP net loss per share

may not be comparable to similarly titled non-GAAP financial measures reported by other companies. Non-GAAP net loss and Non-GAAP

net loss per share, as defined by the Company, represent net loss adjusted for non-cash stock-based compensation and a reserve

for excess inventory. Management believes that these non-GAAP financial measures provide useful supplemental information regarding

the performance of the Company's business operations and facilitates comparisons to the Company's historical operating results.

For a full reconciliation of Non-GAAP net loss to the most comparable GAAP financial measures, please see the tables at the end

of this press release.

SECOND SIGHT MEDICAL PRODUCTS, INC.

Condensed Consolidated Balance Sheets

SECOND SIGHT MEDICAL PRODUCTS, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

SECOND SIGHT MEDICAL PRODUCTS, INC.

Reconciliation of Non-GAAP Information to

Most Comparable GAAP Measures

(in thousands, except per share data)