EnteroMedics Inc. (NASDAQ: ETRM), the developer of medical devices

using neuroblocking technology to treat obesity, metabolic diseases

and other gastrointestinal disorders, today announced that it has made

the first commercial shipment of the Maestro@ Rechargeable (RC) System

to its distribution partner in Australia, Device Technologies Pty Ltd.

The Maestro RC System delivers VBLOC@ vagal blocking therapy, a

first-in-class weight loss treatment designed to control both hunger

and fullness by blocking the primary nerve which regulates the

digestive system. The Maestro RC System has received CE Mark for the

treatment of obesity and has been listed on the Australian Register of

Therapeutic Goods (ARTG) for commercial sale in Australia.

"This first commercial shipment of our Maestro RC System marks a major

milestone for EnteroMedics, supporting our evolution to a commercial

enterprise and bringing us closer to our goal of delivering safer,

effective and sustainable weight-loss treatments to patients

worldwide," said Mark B. Knudson, Ph.D., EnteroMedics' President and

Chief Executive Officer. "Australians will be among the first people

in the world with the option to choose VBLOC therapy to treat their

obesity. VBLOC allows patients to take a positive path towards weight

loss, addressing the lifelong challenge of obesity and its

comorbidities, such as diabetes, without sacrificing wellbeing or


Dr. Roy Brancatisano, MB, BS, FRACS, Surgeon at the Institute of

Weight Control in Sydney, Australia stated, "The Maestro RC System

demonstrates a prolonged effect on weight loss and obesity related

co-morbidities without compromises in safety, lifestyle or anatomy.

There is a significant need for safer, less-invasive obesity

treatments, and I am proud to be able to offer this first-in-class

therapy as a less-punitive, longer-term treatment strategy to the

millions of Australians affected by obesity."

The Company also announced today that it has signed an exclusive,

multi-year agreement with Bader Sultan & Brothers Co. (BSBC) for

commercialization and distribution of the Maestro Rechargeable System

in the Gulf Coast Countries, including Saudi Arabia, Kuwait, Bahrain,

Qatar and the United Arab Emirates. BSBC is a leading distributor of

medical and diagnostic equipment and supplies to the healthcare market

in the State of Kuwait, as well as other territories in the Middle


Dr. Knudson added: "The Middle East is an important new market for

EnteroMedics, and BSBC is an ideal partner to help build a presence

within the region's bariatric community. We look forward to working

with BSBC to advance our commercial plans for bringing VBLOC therapy

to patients in this potentially important new market."

Conference Call Details

EnteroMedics management will host a conference call today, April 3,

2012, at 11:00 AM Eastern Daylight Time. The conference call may be

accessed by dialing (877) 280-7473 for domestic callers and (707)

287-9370 for international callers and providing passcode 66550044. A

replay of the call will be available from April 3, 2012 at 1:00 PM

Eastern Time through July 3, 2012 at 11:59 PM Eastern Time by dialing

(855) 859-2056 for domestic callers and (404) 537-3406 for

international callers and providing passcode 66550044.

About the Maestro@ Rechargeable (RC) System

The Maestro RC System delivers VBLOC@ vagal blocking therapy via two

small electrodes that are laparoscopically implanted and placed in

contact with the trunks of the vagus nerve just above the junction

between the esophagus and the stomach. The Maestro RC System is

powered by an internal, rechargeable battery. The battery is recharged

via an external mobile charger and transmit coil that the patient uses

for a short time each week. The Maestro RC System has received CE Mark

and has been listed on the Australian Register of Therapeutic Goods.

About VBLOC Therapy

EnteroMedics developed VBLOC@ vagal blocking therapy to offer

bariatric surgeons and their patients a less invasive alternative to

existing surgical weight loss procedures that may present significant

risks and alter digestive system anatomy, lifestyle and food choices.

VBLOC Therapy is delivered via the Maestro@ System through

laparoscopically implanted leads to intermittently block the vagus

nerves using high-frequency, low-energy electrical impulses. VBLOC

Therapy is designed to target the multiple digestive functions under

control of the vagus nerves and to affect the perception of hunger and


About Obesity in Australia

According to the Australian Bureau of Statistics, in 2008 sixty-two

percent of all adults in Australia were either overweight (BMI > 25)

or obese (BMI > 30). It is estimated that by 2025, 7.2 million

Australians could be obese. The Australian Federal Minister has

declared obesity a national priority, with obesity related costs

exceeding $21 billion annually. Approximately 13,900 bariatric

surgeries were performed in Australia in 2008.

About Device Technologies Australia Pty Limited

Device Technologies Australia Pty Limited, founded in 1992, is the

largest private importer of quality, high technology medical devices

into the Australian and New Zealand healthcare markets. The Company is

privately owned and managed and employs over 400 healthcare specialist

staff that support Clinical Education, Technical Service, Sales

Management and Regulatory Affairs management. Its founders, Mr. Peter

Ord, Chief Executive Officer and Mr. Kevin Ryan, Managing Director

have focused on providing patient access to the best medical devices

and systems available worldwide.

About Obesity in the Middle East

Obesity and metabolic disease is a significant issue in the Middle

East, where an estimated 13 percent of men and 24.5 percent of women

are obese, according to the World Health Organization. Saudi Arabia,

Kuwait, Qatar and the United Arab Emirates each rank in the top 20 for

global prevalence of adult obesity (BMI ? 30 kg/m), with obese

population ranging from 25-40% of the total population.

About Bader Sultan & Brothers Co. W.L.L.

Bader Sultan & Brothers Co. W.L.L. is a leading distributor of medical

and diagnostic equipments and supplies to the healthcare market in the

State of Kuwait. Bader Sultan & Brothers Co. strives to be a

trendsetter in both technology and design and continues to offer

innovative solutions in the medical, scientific and environmental

fields. BSBC's main product lines include hospital, medical and

analysis equipment, medical electronics, medical diagnostic and

scientific instruments.

About EnteroMedics Inc.

EnteroMedics is a development stage medical device company focused on

the design and development of devices that use neuroblocking

technology to treat obesity, metabolic diseases and other

gastrointestinal disorders. EnteroMedics' proprietary neuroblocking

technology, VBLOC@ vagal blocking therapy, is designed to

intermittently block the vagus nerves using high-frequency,

low-energy, electrical impulses. These electrical impulses are

delivered by a neuroregulator, EnteroMedics' Maestro@ System, which is

powered by an integrated rechargeable battery. For more information,


Forward-Looking Safe Harbor Statement:

This press release contains forward-looking statements about

EnteroMedics Inc. Our actual results could differ materially from

those discussed due to known and unknown risks, uncertainties and

other factors including our limited history of operations; our losses

since inception and for the foreseeable future; our lack of commercial

regulatory approval for our Maestro@ System for the treatment of

obesity in the United States or in any foreign market other than

Australia and the European Community; our preliminary findings from

our EMPOWER pivotal trial; our ability to comply with the Nasdaq

continued listing requirements; our ability to commercialize our

Maestro System; our dependence on third parties to initiate and

perform our clinical trials; the need to obtain regulatory approval

for any modifications to our Maestro System; physician adoption of our

Maestro System and VBLOC@ vagal blocking therapy; our ability to

obtain third party coding, coverage or payment levels; ongoing

regulatory compliance; our dependence on third party manufacturers and

suppliers; the successful development of our sales and marketing

capabilities; our ability to raise additional capital when needed;

international commercialization and operation; our ability to attract

and retain management and other personnel and to manage our growth

effectively; potential product liability claims; potential healthcare

fraud and abuse claims; healthcare legislative reform; and our ability

to obtain and maintain intellectual property protection for our

technology and products. These and additional risks and uncertainties

are described more fully in the Company's filings with the Securities

and Exchange Commission, particularly those factors identified as

"risk factors" in the annual report on Form 10-K filed March 15, 2012.

We are providing this information as of the date of this press release

and do not undertake any obligation to update any forward-looking

statements contained in this document as a result of new information,

future events or otherwise.

Caution - Investigational device. Limited by Federal (United States)

law to investigational use.

The implantation procedure and usage of the Maestro@ System carry some

risks, such as the risks generally associated with laparoscopic

procedures and those related to treatment as described in the ReCharge

clinical trial informed consent.