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 been

added to the Russell 3000@ and Russell 2000@ Indexes. The company was

included in both Indexes when Russell Investment Group reconstituted

its family of U.S. stock indexes after market close on June 22, 2012.

The Russell 3000@ Index measures the performance of the largest 3000

U.S. companies representing approximately 98% of the investable U.S.

equity market. Membership in the Russell 3000@, which remains in place

for one year, results in automatic inclusion in either the large-cap

Russell 1000@ Index or the small-cap Russell 2000@ Index as well as

the appropriate Russell growth, sector, or value style indexes. The

Russell family of indexes is designed to be a comprehensive and

unbiased representation of the investable U.S. equity market and is

reconstituted annually to ensure new and growing equities are

reflected. Russell determines membership for its equity indexes

primarily by objective, market capitalization rankings, and style


"Our addition to the Russell 2000@ Index is further evidence of

EnteroMedics' continued successful execution of its business

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

Chief Executive Officer. "Our inclusion in the Russell 2000@ Index

will broaden our market exposure and help bring long-term value to our


Russell indexes are widely used by index fund portfolio managers and

as benchmarks for both passive and active investment strategies.

Approximately $4 trillion in assets are currently benchmarked to

Russell indexes, and investment managers who oversee these funds

purchase shares of member stocks according to a company's relative

weighting in a particular index. More information about Russell

indexes is available at

About Russell

Russell Investments (Russell) is a global asset manager and one of

only a few firms that offers actively managed, multi-asset portfolios

and services that include advice, investments and implementation.

Working with institutional investors, financial advisors and

individuals, Russell's core capabilities extend across capital markets

insights, manager research, Indexes, portfolio implementation and

portfolio construction.

As of March 31, 2012, Russell had approximately $155 billion in assets

under management and works with 2,400 institutional clients, more than

580 independent distribution partners and advisors, and individual

investors globally. Founded in 1936, Russell is a subsidiary of The

Northwestern Mutual Life Insurance Company.

About EnteroMedics Inc.

EnteroMedics is a medical device company focused on the development

and commercialization of its neuroscience based technology to treat

obesity and metabolic diseases. EnteroMedics' proprietary technology,

VBLOC@ vagal blocking therapy, delivered by a pacemaker-like device

called the Maestro@ Rechargeable System, is designed to intermittently

block the vagus nerves using high-frequency, low-energy, electrical

impulses. VBLOC Therapy allows people with obesity to take a positive

path towards weight loss, addressing the lifelong challenge of obesity

and its comorbidities without sacrificing wellbeing or comfort. The

Maestro Rechargeable System has received CE Mark and is listed on the

Australian Register of Therapeutic Goods. For more information, visit

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.