GI Dynamics : Close of Security Purchase Plan

Boston, United States Sydney, Australia January 17, 2017 AEDT

+1 (781) 357-3246

BOSTON and SYDNEY - 17 January 2017 - GI Dynamics, Inc. (ASX:GID), a medical device company that has commercialized EndoBarrier® in Europe for patients with type 2 diabetes and obesity announces that the Company's security purchase plan (SPP) announced on 14 December 2016 has closed raising approximately A$294,017.

The SPP, which closed at 5pm on Monday, 16 January 2017, formed part of a capital raising that also included a A$1.5 placement to sophisticated and professional investors that was also announced on 14 December 2016 (Placement). The offer price under the SPP was A$0.022, the same as the issue price under the Placement.

The Company advises that all eligible applicants who validly applied for an allotment of CHESS Depositary Interests (CDIs) under the SPP will receive 100% of their application with no scale back or refunds.

The key remaining dates for the SPP are as follows:

• SPP CDI allotment date - Monday, 23 January 2017; and

• Despatch of holding statements - Tuesday, 24 January 2017.

GI Dynamics, Inc. (ASX:GID), is the developer of EndoBarrier, the first endoscopically delivered device therapy approved for the treatment of type 2 diabetes and obesity. EndoBarrier is approved and commercially available in multiple countries outside the United States. EndoBarrier is not approved for sale in the United States and is limited by federal law to investigational use only in the United States. Founded in 2003, GI Dynamics is headquartered in Boston, Massachusetts. For more information, please visit www.gidynamics.com.

Boston, United States Sydney, Australia January 17, 2017 AEDT

+1 (781) 357-3246

This announcement contains forward-looking statements concerning our development and commercialization plans; potential revenues and revenue growth, costs, excess inventory, profitability and financial performance; ability to obtain reimbursement for our products; clinical trials and associated regulatory submissions and approvals; the number and location of commercial centers offering the EndoBarrier; and our intellectual property position. These forward-looking statements are based on GI Dynamics management's current estimates and expectations of future events as of the date of this announcement. Furthermore, the estimates are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those indicated in or implied by such forward-looking statements. These risks and uncertainties include but are not limited to, risks associated with the consequences of terminating the ENDO trial and the possibility that future clinical trials will not be successful or confirm earlier results. Further risks are associated with obtaining funding from third parties; the timing and costs of clinical trials; the timing of regulatory submissions; and the timing, receipt and maintenance of regulatory approvals. The timing and amount of other expenses and the timing and extent of third-party reimbursement risks associated with commercial product sales, including product performance, competition, risks related to market acceptance of products, intellectual-property risk; risks related to excess inventory; and risks related to assumptions regarding the size of the available market, the benefits of our products, product pricing, timing of product launches, future financial results and other factors, including those described in our filings with the U.S. Securities and Exchange Commission. Given these uncertainties, one should not place undue reliance on these forward-looking statements. We do not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or otherwise, unless we are required to do so by law.