CONCEPTUS REPORTS NET LOSS OF $8.1 MILLION FOR 3RD QTR.

Conceptus, Inc. (NASDAQ:CPTS), San Carlos, Calif., developer of the non-incisional permanent birth control procedure Essure(TM), has announced financial results for the three and nine months ended September 30, 2002.

For the third quarter of 2002, Conceptus reported a net loss of $8.1 million, or $0.38 per share, compared with a net loss of $4.5 million, or $0.33 per share, in the comparable period last year. Net sales for the third quarter of 2002 were $481,000, up from $123,000 for the third quarter of last year, and up 18% from $406,000 in the second quarter of 2002. For the nine months ended September 30, 2002, the company reported a net loss of $20.7 million, or $1.14 per share, compared with a net loss of $12.8 million, or $0.99 per share, in the comparable prior-year period. Net sales for the first nine months of 2002 were $1.2 million, compared with $286,000 for the first nine months of 2001. Cost of sales and start-up manufacturing costs, representing the cost of early stage product manufacturing and growing, but limited, production volumes, were $845,000 in the 2002 third quarter, compared with $537,000 in the 2001 third quarter. This declined 5% from $893,000 in the 2002 second quarter. Research and development expenses were $2.2 million for the 2002 third quarter, compared with $2.0 million in the prior-year third quarter. The slight increase reflects continued clinical and regulatory affairs expenses related to the filing of the Essure PMA with the FDA. Selling, general and administrative expenses were approximately $6.0 million for the three months ended September 30, 2002, compared with $2.2 million last year. The increase was primarily related to the company's hiring and training of sales, professional education and strategic reimbursement personnel in preparation for marketing Essure in the U.S.

Cash, cash equivalents, short-term investments and restricted cash were $80.6 million as of September 30, 2002, compared with $33.8 million as of December 31, 2001, reflecting the successful completion in June 2002 of a follow-on public equity offering.

"The strong focus for Conceptus during the third quarter was preparing for FDA approval of Essure and the subsequent market introduction of our product into the world's most important market," commented Steve Bacich, president and chief executive officer. "In our critical U.S. sales function, we have hired and trained 20 direct salespeople, each with an average of more than 12 years of medical device sales experience. These professionals will be managed by two experienced area sales directors. Our professional education department, for which we have hired nine field trainers to date, will support this high-caliber sales group, with additional support from contract field trainers. Over the past two months, our sales representatives and field trainers have been gaining Essure procedural experience in Canada and Australia. In addition, in preparation for U.S. market launch, we are redeploying our sales and training resources from Australia to the U.S."

Noting that reimbursement is a vital component of the company's sales strategy, Bacich commented that Conceptus has also hired three reimbursement professionals, experienced in managing both strategic and operational reimbursement issues for new medical products.

About Essure

Essure deploys a soft micro-insert into the fallopian tube through the cervix using a minimally invasive transcervical tubal access catheter. Once in place, the device is designed to elicit tissue growth in and around the micro-insert to form an occlusion or blockage in the fallopian tube. An Essure procedure does not require cutting or penetrating the abdomen and can be performed in a less costly procedure setting without general anesthesia. A woman is expected to return home about 45 minutes after the procedure is completed.

About Conceptus

Conceptus, Inc. is developing Essure, which is designed to provide a non-incisional alternative to tubal ligation, the leading form of birth control worldwide. The availability of Essure in the U.S. is expected to open up a market currently occupied by surgical tubal ligation and vasectomy, which combined account for over 1 million procedures annually in the United States.

For more information, visit http://www.conceptus.com or call 650/628-4700.