Conceptus Reports Fourth Quarter 1998 Financial and Operational Results.

SAN CARLOS, Calif.--(BW HealthWire)--Feb. 4, 1999--Conceptus, Inc. (Nasdaq:CPTS) announced today the financial results for its fourth quarter and the twelve month period ending Dec. 31, 1998.

The company reported fourth quarter net sales of $111,000, a 73% decrease over the same period last year. The company also reported a net loss of $1,015,000 or $0.11 loss per share for the fourth quarter compared with a net loss of $3,979,000, or $0.42 loss per share for the same period last year.

For the twelve months ended Dec. 31, 1998, the company reported a net loss of $9,665,000, or $1.01 loss per share, on revenues of $449,000 compared with a net loss of $12,058,000, or $1.29 loss per share, on revenues of $1,426,000 for the same period last year. Cash and investments at year end were approximately $17.1 million.

During the quarter, the company completed its restructuring announced on July 6, 1998, which eliminated fifty positions since the beginning of the year and substantially reduced expense levels. As intended by this restructuring, expenses have been reduced to approximately one fourth of the level of the prior year.

The company also confirmed that it is continuing to work with its financial advisor, CIBC Oppenheimer, to identify and evaluate potential strategic relationships.

Throughout the second half of 1998 and on an on-going basis, the focus of the company's resources and efforts will be on the development of the company's S/TOP (Selective Tubal Occlusion Procedure) device.

The S/TOP device utilizes components of Conceptus's proprietary T-TAC (Transcervical Tubal Access Catheter) system and is designed to address the need for a non-surgical method of permanent contraception, estimated to be one of the largest medical device markets.

"Our phase II studies of the S/TOP permanent contraception procedure are progressing well," stated Kathryn Tunstall, president and CEO of Conceptus. "We have enrolled twenty-four patients, have accumulated sixty-seven months of patient 'wearing' data and expect that by mid-1999 we will have enough efficacy data to enable a determination of early clinical feasibility of the S/TOP device.

"Importantly, as previously announced, patients appear to be tolerating the procedure well, without the need for general anesthesia, which is an important potential improvement compared to the current most commonly used form of contraception, surgical tubal ligation," she added.

Conceptus, Inc. designs and develops innovative interventional medical devices for use in reproductive medicine. The company has developed the STARRT Falloposcopy and T-TAC catheter systems to improve the diagnosis and treatment of fallopian tube diseases and disorders, a primary cause of infertility.

The company has also developed the ERA Resectoscope Sleeve, incorporating novel technology designed to improve the safety and ease-of-use of therapeutic hysteroscopy, a growing, less-invasive alternative to hysterectomy.

Conceptus is in Phase II clinical trials of its S/TOP permanent contraception system, a non-surgical approach to fallopian tube sterilization, which is the most commonly performed contraceptive procedure worldwide.

Except for the historical information contained herein, the matters discussed in this press release 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 Conspectus's control, such as strategic planning decisions by management and re-allocation of internal resources, or on factors outside of Conspectus'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 quarterly report on Form 10-Q for the quarter ended Sept. 30, 1998, its Annual Report on Form 10-K for the year ended Dec. 31, 1997 and other filings with the Securities and Exchange Commission. -0-

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

                       Three Months Ended               Twelve Months
                                                            Ended
                 Dec. 31,   Sept. 30,   Dec. 31,           Dec. 31,
                   1998       1998        1997          1998     1997

Net sales           111         86         415           449    1,426

Cost of sales       115         75       1,760         1,702    3,516

Gross margin         (4)        11      (1,345)       (1,253)  (2,090)

Operating
  expenses:
 R&D and
  regulatory        470        898       1,309         4,317    5,429
 Sales and
  marketing          --         --         986         1,897    3,520
 General and
  administrative    799        731         684         3,452    2,803
 Total operating
  expenses        1,269      1,629       2,979         9,666   11,752

Operating loss   (1,273)    (1,618)     (4,324)      (10,919) (13,842)

Interest and
 investment
 income, net        258        287         345         1,254    1,784

Net loss         (1,015)    (1,331)     (3,979)       (9,665) (12,058)

Basic and
 diluted net
 loss per share  $(0.11)   $ (0.14)    $ (0.42)      $ (1.01) $ (1.29)

Shares used in
 computing basic
 and diluted
 net loss
 per share        9,616      9,311       9,484         9,562    9,381


                     Condensed Balance Sheet Data
                            (In thousands)
                                            Dec. 31,         Dec. 31,
                                              1998             1997
                                          (Unaudited)           (a)

Cash, cash equivalents and
  short term investments                     $ 17,071        $ 27,058
Inventory                                          --             355
Trade accounts receivable                         139             540
Total current assets                           17,275          28,243
PP&E, net                                       1,391           1,090
Total assets                                   19,031          29,480

Accounts payable & accruals                       775           1,504
Total current liabilities                         775           1,635
Accumulated deficit                           (45,396)        (35,731)
Stockholders' equity                           18,014          27,504

(a) Derived from audited financial statements.