MicroPort Scientific : MPSC and Lombard Medical Announce Strategic Partnership and Inve...

Shanghai, China and Oxfordshire, UK-December 19, 2016-MicroPort Scientific Corporation ('MPSC') (HK: 853), a leading medical technology company dedicated to innovation, manufacturing and marketing high-end medical devices globally, and Lombard Medical, Inc. ('Lombard Medical') (NASDAQ: EVAR), a UK based medical device company focused on endovascular aneurysm repair, announced today a strategic partnership and a significant infusion of capital into Lombard Medical by MPSC. With the combined product portfolio of MPSC's endovascular business and Lombard Medical's endovascular stent graft, this partnership would create the broadest product portfolio for the endovascular abdominal aortic aneurysm ('AAA') market in China to further consolidate MPSC's leading position in the fast growing China endovascular market, and meanwhile would allow MPSC to develop its endovascular business in international markets that have large growth potential.

With the aging global population and conversion from open surgery repair to interventional therapy facilitated by technology, there is a large growing endovascular aortic repair ('EVAR') market worldwide with room for expansion. The EVAR market size is expected to develop to $1.9 billion by 2018 from $1.4 billion in 2013 with a compound annual growth rate of 6%. In particular, the China EVAR market is approximately $150 million in size and rapidly growing at a compound annual growth rate of around 15%.

Lombard Medical currently owns and markets two key products: Aorfix™ is the only stent graft to hold global approvals to treat AAA with aortic neck angles greater than 90 degrees, and Altura is a highly innovative stent graft with a low profile delivery design that offers clinicians a simple and predictable treatment option for standard AAA anatomy. The agreement provides MPSC with the exclusive marketing rights for Lombard Medical's products Aorfix™ and Altura AAA stent graft product lines in China, as well as the right to a technology license to manufacture the products for the China market. The two products are expected to gain approval from China Food and Drug Administration by 2019 after completion of clinical trials. Lombard Medical and MPSC will also enter into a component supply manufacturing agreement whereby MPSC will manufacture in its facilities in Shanghai certain components for the Aorfix™ and Altura product lines. Lastly, MPSC will also have exclusive marketing rights for both Altura and Aorfix™ in Brazil.

In exchange, MPSC and certain investors have invested $15 million in a combination of Lombard Medical common stock and convertible debt. MPSC and certain investors，including MPSC management， have purchased $5 million in common stock at $0.62 per share representing a 29% ownership stake in Lombard Medical based on common stock currently outstanding. In addition, MPSC and a certain investor were issued a 5-year $10 million unsecured promissory note bearing interest at a rate of six-month LIBOR plus 4.0% from Lombard Medical which is convertible at any time prior to maturity into Lombard Medical common stock at an initial conversion price of $0.90 per share. Assuming conversion of the convertible bond, MPSC and a certain investor will have voting control of approximately 49% of Lombard Medical's fully diluted shares outstanding. Post this transaction, Lombard Medical will have five (5) members on its Board of Directors, with MPSC having two (2) members on Lombard Medical's board.

'We are extremely pleased to be adding two highly differentiated products in Aorfix™ and Altura to our market-leading endovascular portfolio in both China and other emerging markets. In addition, we believe our planned component manufacturing collaboration will significantly reduce manufacturing costs for both Aorfix™ and Altura product lines to make them more affordable for patients as well as to increase their margins and market competitiveness' MPSC Chairman and CEO Dr. Zhaohua Chang stated, 'We look forward to partnering with Lombard Medical to offer the premier portfolio of endovascular devices to treat patients requiring aortic artery aneurysm repair.'

Lombard Medical CEO Simon Hubbert commented, 'The agreements will provide the infrastructure, regulatory support and capital for launching our technologies into the fast-growing China endovascular market. I have full confidence in our partnership as MPSC has a strong track record for commercializing innovative vascular devices.'

About MicroPort

MicroPort Scientific Corporation (the 'Group') is a leading medical device company with business focusing on innovating, manufacturing, and marketing high-quality and high-end medical devices globally. With a diverse portfolio of products now being used at an average rate of one for every 15 seconds in thousands of major hospitals around the world, the Group maintains world-wide operations in a broad range of business segments including Cardiovascular, Orthopedic, Electrophysiological, Endovascular, Neurovascular, Surgical, Diabetes Care and Endocrinal Management, and others. MicroPort is dedicated to becoming a patient oriented global enterprise improve and reshape patient lives through application of innovative science and technology.

For more information, please refer to: www.microport.com

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