Conceptus announces marketing and distribution agreement in Japan with JMS.

SAN CARLOS, Calif.--(BUSINESS WIRE)--May 29, 1997--Conceptus Inc. (NASDAQ:CPTS) announced today that it has signed a marketing and distribution agreement with JMS Co. Ltd.

JMS will have exclusive rights to market Conceptus' complete line of infertility diagnostic products in Japan, including the Transcervical Tubal Access Catheter (T-TAC(TM)) System and the Selective Tubal Assessment to Refine Reproductive Therapy (STARRT(TM)) Falloposcopy System. In addition to marketing Conceptus' products, JMS will manage the process for obtaining regulatory approval and procedural reimbursement in Japan. Additional terms of the agreement were not disclosed.

"We feel that this agreement with JMS represents a tremendous opportunity both now and for the future," stated Kathryn Tunstall, president and CEO of Conceptus. "Infertility is an important problem in Japan -- as it is here in the U.S. Because of the exceedingly low birthrate in Japan, the government proactively supports infertility treatment. In the near term, our T-TAC and STARRT systems will enable physicians in Japan to more accurately diagnose and prescribe treatments for couples seeking assistance. In the long term, our agreement with JMS provides Conceptus with a committed partner in a significant world market."

JMS is a major supplier of medical devices and technologies in Japan with annual sales in excess of $350 million. JMS has established a strong market presence in the areas of disposable cardiovascular, dialysis and hospital products. The women's healthcare market is an area of strategic focus for JMS over the next five years.

"JMS prides itself on being a pioneer in medical devices and technologies," stated Dr. Hajime Kimura, president and CEO of JMS. "This agreement provides us with the opportunity to bring Conceptus' unique technology to Japan and is a significant step as we seek to establish a strong presence in the women's healthcare market."

JMS will market Conceptus' platform technology known as the T-TAC System, as well as the STARRT Falloposcopy system for the improved diagnosis of fallopian tube disorders, which account for approximately 35% of female infertility.

The T-TAC System is comprised of a proprietary system of microcatheters and guidewires which enable physicians to access and navigate the fallopian tube in a non-surgical approach. T-TAC facilitates a more direct, accurate and rapid diagnosis of tubal disorders than conventional diagnostic methods and may result in reduced rates of invasive infertility interventions such as in-vitro fertilization with embryo transfer and tubal surgery.

In addition, Conceptus has developed the STARRT System, which allows physicians to perform a new medical procedure involving the transcervical (across the cervix) insertion of a micro-endoscope into the fallopian tube. This procedure, falloposcopy, enables physicians to directly view the lumen (inside) of the fallopian tube in order to diagnose tubal functionality. Conceptus received U.S. 510(k) marketing clearance for the STARRT System for diagnosis of proximal tubal occlusion, a cause of infertility, in January of this year.

Conceptus Inc. designs, develops and markets innovative medical devices for the reproductive system. 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.

In November 1996, Conceptus announced that it had completed the acquisition of Microgyn Inc., a private medical device company which is developing products designed to improve the safety and performance of procedures to treat uterine disorders. Conceptus is also developing a non-surgical approach to fallopian tube sterilization, the most commonly performed contraceptive procedure worldwide. -0-

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, 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' control, such as strategic planning decisions by management and re-allocation of internal resources, or on factors outside of Conspectus' 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 Dec. 31, 1997, the company's prospectus dated Feb. 1, 1996, under the heading "Risk Factors and the company's other filings with the Securities and Exchange Commission."

CONTACT: Conceptus Inc.

Kathryn Tunstall or Sanford Fitch, 415/802-7240