EnteroMedics Announces First Veterans Choice Program vBloc Implant at MedStar Health in Maryland

8/21/17

EnteroMedics Inc. (NASDAQ:ETRM), the developer of minimally invasive medical devices to treat obesity, metabolic diseases and other gastrointestinal disorders, today announced that MedStar Health successfully completed its first implant of the Company's vBloc® Neurometabolic Therapy for a veteran through the Veterans Choice Program. The surgery was performed on Friday August 18, 2017 by John S. Brebbia, MD, MBA, FACS, FASMBS.

"We are so pleased to be a part of a program that allows access to a safe, durable, non-anatomy-altering solution for patients who are battling the potentially life-threatening disease of obesity and its associated comorbidities," said Dr. Brebbia. "While we have successfully implanted vBloc in the general population at MedStar, we are honored to now be offering this solution to the many veterans who qualify for vBloc through the Veterans Choice Program."

The Federal Veterans Choice Program allows veterans to have the vBloc procedure within a facility in their local community instead of at a Department of Veteran's Affairs (VA) hospital, significantly increasing the accessibility to vBloc for veterans. According to the VA, in the first quarter of FY2017, they observed a more than 30 percent increase in authorizations through the program as compared to the same period in FY2016. EnteroMedics' previously-announced agreement with Academy Medical covers the cost of vBloc for qualified veterans in accordance with their VA health benefits.

About MedStar Health

MedStar Health is a not-for-profit health system dedicated to caring for people in Maryland and the Washington, D.C., region, while advancing the practice of medicine through education, innovation and research. MedStar's 30,000 associates, 6,000 affiliated physicians, 10 hospitals, ambulatory care and urgent care centers, and the MedStar Health Research Institute are recognized regionally and nationally for excellence in medical care. As the medical education and clinical partner of Georgetown University, MedStar trains more than 1,100 medical residents annually. MedStar Health's patient-first philosophy combines care, compassion and clinical excellence with an emphasis on customer service. For more information, visit MedStarHealth.org.

About vBloc® Therapy

vBloc Therapy works to control sensations of hunger using a pacemaker-like device that is implanted under the skin during a safe, minimally invasive procedure that does not alter or remove any patient anatomy. The vBloc System is designed to give the patient a sensation of fullness, empowering them to eat less, control their appetite, and lose weight. Studies have shown that vBloc Therapy produces meaningful weight loss while also reducing comorbidity factors related to obesity.

vBloc Therapy is approved for use in people aged 18 years and older who are obese, with a BMI of 40 to 45 kg/m2, or a BMI of 35 to 39.9 kg/m2 with a related health condition such as Type 2 diabetes, high blood pressure, high cholesterol levels or obstructive sleep apnea who have had a poor response to trying to lose weight under supervision in the last 5 years.

About EnteroMedics Inc.

EnteroMedics is a medical device company focused on the development and commercialization of technology to treat obesity and metabolic diseases. vBloc® Neurometabolic Therapy, delivered by an FDA-approved pacemaker-like device called the vBloc® System, is designed to help patients feel full and eat less by intermittently blocking hunger signals on the vagus nerve. EnteroMedics recently acquired the Gastric Vest System™ through its acquisition of BarioSurg, Inc.

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