Conceptus Announces 1Q98 Financial Results.

SAN CARLOS, Calif.--(BW HealthWire)--April 27, 1998--Conceptus, Inc., (NASDAQ:CPTS), a leading company in the emerging women's health market, announced today the financial results for its first quarter of 1998.

The Company reported first quarter net sales of $167,000, a 40% decrease over the same period last year. The Company also reported a net loss of $3,456,000 or $0.36 per share for the first quarter compared with a net loss of $2,796,000 or $0.30 per share for the same period last year. The majority of the sales shortfall for the quarter was caused by the failure of Conceptus's distributor of the FUTURA(tm) Resectoscope Sleeve, Imagyn Medical Technology (NASDAQ:IMTI), to order its contracted first quarter minimums of $250,000.

Since the marketing and distribution agreement between Conceptus and Imagyn requires the distributor to either purchase or pay for its contracted quarterly minimums, Conceptus billed the distributor $250,000 for the quarter. Conceptus will not recognize this income until it is received. In addition, Conceptus's sales of the gynecological configuration of its Microgyn technology, the ERA(tm) Resectosope Sleeve, were impacted by the Company's decision to defer adding planned direct sales representatives, due to ongoing negotiations to acquire a small private medical device company which has a direct US gynecological sales force. The Company ended the quarter with cash and cash equivalents in excess of $23 million.

During the quarter, Conceptus received clearance of a 510(k) from the United States Food and Drug Administration (FDA) for the Stargate(tm) catheter, a component of the Company's STARRT Falloposcopy System. The Stargate catheter was designed to reduce the incidence of "white out", a common occurrence in endoscopy caused by excessive light reflection which obscures the image. The Company believes that the use of its STARRT Falloposcopy system which involves transcervical access to the fallopian tubes, can in many cases obviate the need for diagnostic or therapeutic surgery or in vitro fertilization and the attendant cost and morbidity. During the quarter, Conceptus also commenced its Center of Excellence program in the US as part of its market development strategy to build clinical acceptance for the practice of Falloposcopy . The Company is in discussions with potential distribution partners for STARRT in Europe.

During the first quarter of 1998, the Company evaluated several centers for expansion of its Phase II study of the S/TOP (Selective Tubal Occlusion Procedure) for permanent contraception. A single-center Phase II study, designed to evaluate device effectiveness, commenced in 1997. In another clinical study of the S/TOP device in pre-hysterectomy patients, the Company evaluated all cases performed to date and found that the procedure was well tolerated by awake, mildly sedated patients. In addition, in the first five cases, Conceptus's histological evaluation of fallopian tube tissue yielded early evidence of a local tissue response to the device, as well as damage to the tubal architecture, which is expected to be unfavorable to conception.

The transfer of manufacturing technology and know-how for products developed from Microgyn technology, including the ERA and FUTURA Resectoscope Sleeves, was completed in 1Q98. In addition, the Company introduced four new models of the ERA Resect oscope sleeve to the Interventional Gynecology market. In January, Conceptus received ISO certification and is authorized to affix the CE mark to its marketable products, a requirement in order to market medical devices in European Union member countries after June, 1998.

Conceptus, Inc. designs, develops and markets innovative interventional medical devices for use in reproductive medicine. The Company's initial focus is on the development of systems to improve the diagnosis and treatment of fallopian tube diseases and disorders, a primary cause of infertility. The Company is also introducing the ERA(tm) Resectoscope Sleeve, a novel technology designed to improve the safety and ease-of-use of therapeutic hysteroscopy, a growing, less-invasive alternative to hysterectomy. The Company is in Phase II clinical trials of a non-surgical approach to fallopian tube sterilization, the most commonly performed contraceptive procedure worldwide.

Except for the historical information contained herein, the matters discussed in this press are forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties. The receipt of regulatory approvals, results of product development programs, clinical efficacy of and market demand for products, among other matters discussed in this release, may differ significantly from the discussion of such matters in the forward-looking statements. Such differences may be based upon factors within Conceptus's control, such as strategic planning decisions by management and re-allocation of internal resources, or on factors outside of Conceptus's control, such as delays by regulatory authorities, scientific advances by Conceptus or third parties and introduction of competitive products, as well as those factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 1997, the Company's prospectus dated February 1, 1996, under the heading "Risk Factors" and the Company's other filings with the Securities and Exchange Commission. -0-

                            CONCEPTUS, INC.
                     (A development stage company)
                       STATEMENTS OF OPERATIONS
             (In thousands of dollars, except share data)
                              (unaudited)

                                              Three Months Ended
                                         -----------------------------
                                         March 31, Dec. 31, March 31,
                                           1998      1997      1997
                                         -----------------------------

Net sales                               $   167    $   415    $   277

Cost of sales                               836      1,760        442
                                        -------    -------    -------

Gross loss                                 (669)    (1,345)      (165)

Operating expenses:
    R&D and regulatory                    1,386      1,309      1,431
    Sales and marketing                     879        986        803
    General and administrative              898        684        889
                                        -------    -------    -------
    Total operating expenses              3,163      2,979      3,123
                                        -------    -------    -------

Operating loss                           (3,832)    (4,324)    (3,288)

Interest income & other, net                376        345        492
                                        -------    -------    -------

Net loss                                $(3,456)   $(3,979)   $(2,796)
                                        =======    =======    =======

Net loss per share                      $ (0.36)   $ (0.42)   $ (0.30)
                                        =======    =======    =======

Shares used in computing
    net loss per share                    9,503      9,484      9,226
                                        =======    =======    =======


                     Condensed Balance Sheet Data
                            (In thousands)

                                       March 31,     December 31,
                                         1998           1997
                                     -------------- -------------
                                       (Unaudited)       (a)

Cash, cash equivalents and
 short term investments                  $ 23,240    $ 27,058
Inventory                                     327         355
Trade accounts receivable                     499         540
Total current assets                       24,385      28,243
PP&E, net                                   1,430       1,090
Total assets                               25,943      29,480

Accounts payable & accruals                 1,439       1,504
Total current liabilities                   1,551       1,635
Accumulated deficit                       (39,187)    (35,731)
Stockholders' equity                       24,076      27,504

(a) Derived from audited financial statements.

CONTACT: Conceptus, Inc.

Kathryn Tunstall or Sanford Fitch, 650/802-7240