EndoBarrier ™ Gastrointestinal Liner Plus EndoBarrier Flow Restrictor Dramatically Increases Weight Loss in Obese Patients; Compelling Impact on Diabetes Risk Factors

PARIS, France, August 26, 2009 – GI Dynamics, a leader in non-surgical treatments for type 2 diabetes and obesity, today announced that additional results from a previously reported clinical study regarding mechanisms of action will be presented on Saturday, August 29, 2009 by Manoel Galvao Neto, M.D., scientific coordinator, Gastro Obeso Center, Sao Paulo, Brazil and lead investigator for the study, at the International Federation for the Surgery of Obesity and Metabolic Disorders (IFSO) 14th World Congress in Paris, France.

This study, previously highlighted in June at the 26th annual meeting of the American Society for Metabolic and Bariatric Surgery (ASMBS), demonstrated the substantially enhanced weight loss benefits of combining the company’s EndoBarrier Gastrointestinal Liner with a new EndoBarrier Flow Restrictor. The EndoBarrier Flow Restrictor provides an adjustable restriction at the outlet of the stomach and is designed to delay gastric emptying (GE), an additional mechanism which adds to the therapeutic effects of the liner. The GE data being reported at IFSO support this novel mechanism.

“We have had significant clinical experience with the EndoBarrier at our obesity management center, and even when assessed relative to invasive and other noninvasive procedures, we believe the EndoBarrier platform represents a much needed new approach to reducing weight and improving blood sugar control in obese patients and patients at risk for serious metabolic disease,” stated Dr. Galvao. “In particular, we are excited about the new data emerging from our ongoing clinical study in people living with type 2 diabetes and the notable impact EndoBarrier appears to have on blood sugar control. We look forward to sharing these data later this year upon completion of the trial.”

Stuart A. Randle, chief executive officer of GI Dynamics commented, “We are seeing the clear need and desire for a non-surgical approach to treating type 2 diabetes while simultaneously addressing weight problems, especially in patients with consistently difficult to manage blood sugar levels. Our growing clinical experience with EndoBarrier suggests that this product and our platform are uniquely suited to meet these challenges and provide a completely new way of addressing the twin epidemics of type 2 diabetes and obesity.”

GI Dynamics is defining a new class of metabolic treatment options that fit between pharmaceutical regimens and surgery, called non-surgical therapeutics. Non-surgical therapeutics are designed to eliminate or reduce the risks and side effects associated with pharmaceutical regimens as well as surgical options. This new class of treatment can be performed easily and quickly without any incisions, thus reducing patient anxiety and recuperative time. Unlike traditional pharmaceutical approaches, non-surgical therapeutics remove the burden of dose regimen compliance from the patient. Additionally, non-surgical therapeutics hold the potential to improve the patient’s overall health, by providing the control necessary to institute lifestyle and nutritional improvements to maintain therapeutic effect, while being easily removed once the desired effect has been attained and lifestyle changes implemented. Clinical trials involving more than 250 patients have demonstrated the dramatic weight loss and diabetes improvement achieved with the EndoBarrier Gastrointestinal Liner.

About the EndoBarrier Gastrointestinal Liner

The patented EndoBarrier Gastrointestinal Liner is an advanced investigational, non-surgical medical device based on the EndoBarrier Technology platform for treating type 2 diabetes and obesity. The EndoBarrier Gastrointestinal Liner is placed in the GI tract endoscopically (via the mouth) to create a barrier between food and the wall of the intestine.  Physicians believe that preventing food from coming into contact with the intestinal wall may alter the activation of hormonal signals that originate in the intestine, thus mimicking the effects of a Roux-en-Y gastric bypass procedure without surgery. A growing body of pre-clinical and clinical evidence supports the potential for EndoBarrier Gastrointestinal Liner to dramatically change the treatment landscape for people living with type 2 diabetes, obese people at risk for type 2 diabetes, and people with severe weight problems.

About GI Dynamics

GI Dynamics is focused on developing effective, non-surgical approaches for treating type 2 diabetes and obesity. The company’s patented EndoBarrier™ Technology has the potential to deliver medical interventions for people combating weight problems and diabetes or diabetes risk factors. Data from clinical trials demonstrate that the EndoBarrier™ Gastrointestinal Liner, an advanced device in the EndoBarrier portfolio, may provide rapid improvement in glycemic control and significant weight loss by modifying metabolic pathways.

The company is also developing the EndoBarrier Flow Restrictor, which is designed to further enhance the effectiveness of the liner by doubling the amount of weight-loss that can be achieved using the liner alone. Each device in the EndoBarrier portfolio is designed to assist patients gain control of their blood sugar and achieve a healthier body mass index (BMI). GI Dynamics is collaborating with experts in endocrinology, gastroenterology, bariatric surgery and medical weight loss on these efforts.

Based in Lexington, Massachusetts and founded in 2003, GI Dynamics is backed by top-tier investors including Advanced Technology Ventures, Catalyst Health Ventures, Cutlass Capital, Domain Associates, Johnson & Johnson Development Corporation, and Polaris Venture Partners. For more information, visit GI Dynamics online at www.gidynamics.com.