Kips Bay Medical Announces Pricing of Public Offering of 5,250,000 Shares of Common Stock

Kips Bay Medical Announces Pricing of Public Offering of 5,250,000 Shares of
Common Stock

MINNEAPOLIS, Jan. 23, 2014 (GLOBE NEWSWIRE) -- Kips Bay Medical, Inc.
(Nasdaq:KIPS), a medical device company focused on manufacturing and
commercializing its external saphenous vein support technology, the eSVS®
Mesh, for use in coronary artery bypass grafting surgery, today announced the
pricing of its previously announced underwritten public offering. Kips Bay is
offering 5,250,000 shares of common stock at a public offering price of $0.70
per share for gross proceeds of $3,675,000, prior to deducting the
underwriting discount and estimated offering expenses. Kips Bay intends to use
the net proceeds of this offering for working capital and general corporate
purposes, including funding the process of seeking regulatory approval to
market its eSVS Mesh in the United States and abroad, including continuing its
human clinical trials.

Kips Bay has granted the underwriters a 45-day option to purchase up to an
aggregate of 785,000 additional shares of common stock to cover
over-allotments, if any. The offering is expected to close on or about January
29, 2014, subject to satisfaction of customary closing conditions

Aegis Capital Corp. is acting as the sole book-running manager for the
offering.

A shelf registration statement on Form S-3 was filed with the Securities and
Exchange Commission and has become effective. The securities may be offered
only by means of a prospectus, including a related prospectus supplement. A
preliminary prospectus supplement related to the offering has been filed with
the Securities and Exchange Commission on January 23, 2014 and a final
prospectus supplement related to the offering also will be filed with the
Securities and Exchange Commission. Electronic copies of the preliminary
prospectus supplement and, when available, the final prospectus supplement, as
well as the accompanying base prospectus, may be obtained by either contacting
the representative of the underwriters (as set forth below) or by accessing
the Securities and Exchange Commission's website at https://www.sec.gov.

Aegis Capital Corp.
Prospectus Department
810 Seventh Avenue, 18th Floor
New York, New York 10019
Telephone: 212-813-1010
E-mail: prospectus@aegiscap.com

This release shall not constitute an offer to sell or the solicitation of an
offer to buy any securities of Kips Bay Medical, Inc., nor shall there be any
sale of these securities in any state or jurisdiction in which such offer,
solicitation or sale is not permitted.

About Kips Bay Medical

Kips Bay Medical, Inc., headquartered in Minneapolis, Minnesota, is a medical
device company focused on manufacturing and commercializing its external
saphenous vein support technology, or eSVS Mesh for use in coronary artery
bypass grafting surgery. The eSVS Mesh is designed to be fitted like a sleeve
on the outside of saphenous vein grafts to strengthen SVGs used in coronary
artery bypass graft surgery. By strengthening the SVG and preventing the
damaging expansion of the vein graft, the company hopes to reduce or prevent
the resulting injury which can lead to SVG failure and potentially costly and
complicated re-interventions for patients undergoing CABG surgery. Additional
information about Kips Bay Medical, Inc. can be found at
www.KipsBayMedical.com.

Safe Harbor Regarding Forward-Looking Statements

Statements contained in this release that relate to future events are
forward-looking statements under the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are based on current expectations of
future events and often can be identified by words such as "intends," "may,"
"expects," "believes," "could," "future," other words of similar meaning or
the use of future dates. Examples of forward-looking statements in this
release include Kips Bay's expectations regarding the offering, including the
actual size or terms of the offering, the size of the underwriter's option to
purchase additional shares, whether or when the offering may be completed and
Kips Bay's anticipated use of net proceeds from the offering. Forward-looking
statements by their nature address matters that are, to different degrees,
uncertain. Uncertainties and risks may cause Kips Bay's actual results to be
materially different than those expressed in or implied by Kips Bay's
forward-looking statements. For Kips Bay, such uncertainties and risks
include, among others, risks associated with the offering, the status of the
eMESH I clinical feasibility trial, including enrollment, completion and the
results; Kips Bay's future operating results and financial performance; market
size and market acceptance of its eSVS Mesh technology; the ability of Kips
Bay and its distributors to commercialize and sell the eSVS Mesh in Europe;
its ability to obtain coverage and reimbursement from third-party payors for
its eSVS Mesh technology and the extent of such coverage; the development of
its distribution and marketing capabilities; and its ability to attract and
retain scientific, regulatory, and sales and marketing support personnel. More
detailed information on these and other factors that could affect Kips Bay's
actual results are described in Kips Bay's filings with the Securities and
Exchange Commission, including its most recent annual report on Form 10-K and
subsequent quarterly reports on Form 10-Q. Kips Bay undertakes no obligation
to update its forward-looking statements.

Contact:

Kips Bay Medical, Inc.
Manny Villafaña, Chairman and Chief Executive Officer, +1-763-235-3540
Email: Manny.Villafana@KipsBayMedical.com
or
Scott Kellen, Chief Operating Officer and Chief Financial Officer,
+1-763-235-3540
Email: Scott.Kellen@KipsBayMedical.com
 
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