Kips Bay Medical Announces Pricing of Public Offering of Common Stock

  Kips Bay Medical Announces Pricing of Public Offering of Common Stock

Business Wire

MINNEAPOLIS -- December 21, 2012

Kips Bay Medical, Inc. (NASDAQ: KIPS) along with Manny Villafaña, its Founder,
Chairman and CEO, announced the pricing of an underwritten public offering of
10,000,000 shares of its common stock for total estimated gross proceeds of
$6.5 million. Kips Bay Medical has also granted the underwriters a 45-day
option to purchase up to 1,500,000 additional shares of common stock. The
offering is subject to customary closing conditions and is expected to close
on December 27, 2012.

Kips Bay Medical intends to use the net proceeds of this offering to seek
regulatory approval to market its eSVS® Mesh in the United States and abroad,
including continuing its human clinical trials for the United States Food &
Drug Administration, to develop and test additional applications of its eSVS
Mesh, and for working capital and general corporate purposes.

Sunrise Securities Corp. is acting as the sole book-running manager. Aegis
Capital Corp. is acting as co-manager.

A registration statement on Form S-1 relating to these securities was declared
effective by the Securities and Exchange Commission on December 21, 2012. A
preliminary prospectus relating to the offering has been filed with the SEC
and is available on the SEC's web site at http://www.sec.gov. Copies of the
final prospectus relating to the offering, when available, may be obtained
from the offices of Sunrise Securities Corp., 600 Lexington Ave., 23rd Floor,
New York, New York 10022, telephone: (212) 421-1616 or email:
rf@sunrisecorp.com, or from the above-mentioned SEC website.

This press release does not constitute an offer to sell, or the solicitation
of an offer to buy, these securities, nor will there be any sale of these
securities in any state or other jurisdiction in which such offer,
solicitation or sale is not permitted.

About Kips Bay Medical

Kips Bay Medical, Inc., founded in 2007 and headquartered in Minneapolis,
Minnesota, is a medical device company focused on manufacturing and
commercializing its innovative external saphenous vein support technology, or
eSVS Mesh for use in coronary artery bypass grafting surgery. The eSVS Mesh is
a nitinol mesh sleeve that, when placed over a saphenous vein graft during
CABG surgery, is designed to improve the structural characteristics and
long-term performance of the saphenous vein graft. Additional information
about Kips Bay Medical, Inc. can be found at www.KipsBayMedical.com.

Safe Harbor

Certain statements in this press release are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 and are
provided under the protection of the safe harbor for forward-looking
statements provided by that Act. For example, statements in this press release
regarding closing of the offering and anticipated use of proceeds are
forward-looking statements. These statements involve risks and uncertainties
which could cause results to differ materially from those projected, including
but not limited to the risks detailed from time to time in Kips Bay Medical’s
SEC reports, including its most recent annual report on Form 10-K and
subsequent quarterly reports on Form 10-Q. Kips Bay Medical encourages you to
consider all of these risks, uncertainties and other factors carefully in
evaluating the forward-looking statements contained in this release.

Contact:

Kips Bay Medical, Inc.
Manny Villafaña, 763-235-3540
Chairman and Chief Executive Officer
Manny.Villafana@KipsBayMedical.com
or
Scott Kellen, 763-235-3540
Chief Operating Officer and Chief Financial Officer
Scott.Kellen@KipsBayMedical.com
 
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