Conceptus to Acquire Microgyn.

SAN CARLOS, Calif.--(BUSINESS WIRE)--Sept. 23, 1996--Conceptus, Inc. (NASDAQ: CPTS) announced that is has signed a Letter of Intent to acquire Microgyn, Inc., a private medical device company, for a combination of cash and common stock.

Microgyn is focused on developing products to increase the safety and performance of resectoscope procedures, including therapeutic hysteroscopy. Therapeutic hysteroscopy is one of the most rapidly growing procedures in gynecology to treat uterine disorders such as recurrent pregnancy loss, dysfunctional uterine bleeding and pelvic pain. This procedure can often provide a less-invasive alternative to hysterectomy, or the removal of the uterus, which is an invasive surgical procedure performed approximately 600,000 times each year in the United States.

"We are extremely pleased to become a part of Conceptus," stated Keith Isaacson, M.D., co-founder of Microgyn and recognized expert in hysteroscopy.

"Interventional gynecology is an underserved area of medicine that has been forced to adapt technology designed for other specialties to gynecologic applications. We share Conceptus's vision of creating a company dedicated to developing innovative clinically valuable products for the diagnosis and treatment of the gynecologic patient," added Dr. Isaacson.

"This acquisition is consistent with our strategy to broaden our product offering to more effectively meet the needs of the interventional gynecologist," emphasized Kathryn Tunstall, President and CEO of Conceptus. "We believe that Microgyn provides another significant platform technology for Conceptus and that the Microgyn product portfolio will allow us to expand our clinical applications and enhance our core catheter technology platform. Most importantly, we look forward to providing the interventional gynecologist with improved clinical solutions for the patient which are less invasive and more cost effective."

Microgyn's lead product, the Continuous-flow Isotonic Solution System (CISS), is designed to permit the use of isotonic, or physiologic, fluids during hysteroscopic procedures. Today, these procedures require the use of hypotonic fluids, the absorption of which can lead to a number of clinical complications, including death.

"The ability to effectively use isotonic solutions during hysteroscopic procedures would markedly reduce the risk of serious electrolyte disturbances and their associated complications and could well become the standard of care due to its higher margin of safety," noted Richard Gimpelson, M.D., Clinical Assistant Professor of OB/GYN at St. Louis University School of Medicine, a noted hysteroscopist.

Microgyn filed a 510(k) application for the system in June 1996. The CISS is compatible with the large installed base of existing hysteroscope systems and electrosurgical generators. Microgyn is also developing other related products that are intended to further improve the performance of hysteroscopy.

Conceptus, Inc. designs, develops and markets innovative medical devices that provide minimally invasive access to the female reproductive system. The Company's initial focus is on the development of systems to improve the diagnosis and treatment of fallopian tube diseases. The Company is also a developing 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 release are forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties. The receipt of regulatory approvals and 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.

Actual results may be affected by, among other things, risk and uncertainties related to new product development and introduction cycles, research and development activities, delays by regulatory authorities, scientific advances by Conceptus or third parties, introduction of competitive products, third party reimbursement and physician training, as well as those factors set forth in the Conceptus's prospectus, dated February 1, 1996.

CONTACT: Conceptus, Inc.

Sanford Fitch or Kathryn Tunstall, 415/802-7240

or

Burns McClellan, Inc.

Ruth Markowitz (investors)

Justin Jackson (media), 212/505-1919