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Inspire Medical Systems, Inc. Reports First Quarter 2018 Financial Results

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MINNEAPOLIS, Minnesota – June 7, 2018 – Inspire Medical Systems, Inc. (NYSE: INSP) (“Inspire”),
a medical technology company focused on the development and commercialization of innovative and
minimally invasive solutions for patients with obstructive sleep apnea (OSA), reported financial results
for the three-months ended March 31, 2018.

Recent Business Highlights

  • First quarter 2018 revenues of $10.0 million, representing a 90% increase over first quarter 2017
  • Completed initial public offering (IPO), raising $112.2 million of net proceeds, after underwriting
    fees and other expenses
  • Received CE Mark approval in Europe for Inspire IV, fourth-generation neurostimulator for the
    treatment of OSA
  • Three recent publications highlighting the clinical experience of nearly 550 patients receiving Inspire
    therapy for the treatment of OSA
  • Significant body of clinical evidence now includes published data on approximately 775
    patients across 10 studies

“We are extremely pleased with the significant momentum in our business,” said Tim Herbert, President
and Chief Executive Officer of Inspire Medical Systems. “Our Inspire therapy for the treatment of
moderate to severe OSA is gaining substantial traction with patients and physicians, as evidenced by our
continued strong growth in revenues in the first quarter of 2018. We have now published data from
approximately 775 patients, including a 300-patient registry study, highlighting their clinical experience
with Inspire therapy, further supporting the efficacy and safety of our device for physicians, patients and
payors. We look forward to the continued launch of our fourth-generation neurostimulator, Inspire IV, in
Europe, during the second quarter.”

“We were also excited to successfully complete our IPO, which will enable us to hire additional sales and
marketing personnel and expand marketing programs, both in the U.S. and in Europe, in order to target
additional physicians and patients. In addition, we will continue to invest in product development and
R&D to further enhance our technology platform,” continued Mr. Herbert. “We view this financing and
the participation of many top-tier healthcare focused investors as validation of the significant growth
potential of our business. We are grateful for the support of all of the investors who participated in the
offering and are focused on creating long-term shareholder value.”

First Quarter 2018 Financial Results
Revenue was $10.0 million in the three months ended March 31, 2018, a 90% increase from $5.3 million
in the three months ended March 31, 2017. The increase in sales of our Inspire system reflects increased
market penetration in existing territories, expansion into new territories and increased physician and
patient awareness. – Inspire Medical Systems, Inc. (NYSE: INSP) (“Inspire”),
a medical technology company focused on the development and commercialization of innovative and
minimally invasive solutions for patients with obstructive sleep apnea (OSA), reported financial results
for the three-months ended March 31, 2018.

Gross profit was $7.7 million, an increase of 89% from $4.1 million in the corresponding prior year
period. Gross margin was 77.2%, as compared to 77.4% in the corresponding prior year period. The
decrease in gross margin in the first quarter of 2018 was due primarily to the anticipated introduction of
the Inspire IV system in Europe.

Operating expenses were $12.9 million, as compared to $8.2 million in the corresponding prior year
period, an increase of 57%. This increase was driven by a larger headcount associated with the expansion
of Inspire’s U.S. and European sales organization, as well as increased marketing and general and
administrative expenses.

Net loss was $6.5 million, or $5.05 per diluted share, as compared to $4.5 million, or $3.90 per diluted
share, in the corresponding prior year period.

As of March 31, 2018, cash, cash equivalents and short-term investments were $17.9 million. This
excludes the net proceeds of $112.2 million raised from the IPO, which closed on May 9, 2018.

About Inspire Medical Systems
Inspire is a medical technology company focused on the development and commercialization of
innovative and minimally invasive solutions for patients with obstructive sleep apnea. Inspire Medical
Systems’ proprietary Inspire therapy is the first and only FDA-approved neurostimulation technology that
provides a safe and effective treatment for moderate to severe obstructive sleep apnea.

For additional information about Inspire, please visit www.inspiresleep.com

Forward Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical
facts contained in this press release are forward-looking statements. In some cases, you can identify
forward-looking statements by terms such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘expect,’’ ‘‘plan,’’
‘‘anticipate,’’ ‘‘could,’’ ‘‘intend,’’ ‘‘target,’’ ‘‘project,’’ ‘‘contemplate,’’ ‘‘believe,’’ ‘‘estimate,’’
‘‘predict,’’ ‘‘potential’’ or ‘‘continue’’ or the negative of these terms or other similar expressions,
although not all forward-looking statements contain these words. Forward-looking statements include, but
are not limited to, statements concerning: estimates regarding the annual total addressable market for our
Inspire therapy in the United States and our market opportunity outside the United States, future results of
operations, financial position, research and development costs, capital requirements and our needs for
additional financing; commercial success and market acceptance of our Inspire therapy; our ability to
achieve and maintain adequate levels of coverage or reimbursement for our Inspire system or any future
products we may seek to commercialize; competitive companies and technologies in our industry; our
ability to expand our indications and develop and commercialize additional products and enhancements to
our Inspire system; our business model and strategic plans for our products, technologies and business,
including our implementation thereof; our ability to accurately forecast customer demand for our Inspire
system and manage our inventory; our ability to expand, manage and maintain our direct sales and
marketing organization, and to market and sell our Inspire system in markets outside of the United States;
our ability to hire and retain our senior management and other highly qualified personnel; our ability to
obtain additional financing in this or future offerings; our ability to commercialize or obtain regulatory
approvals for our Inspire therapy and system, or the effect of delays in commercializing or obtaining
regulatory approvals; FDA or other U.S. or foreign regulatory actions affecting us or the healthcare
industry generally, including healthcare reform measures in the United States and international markets;
the timing or likelihood of regulatory filings and approvals; our ability to establish and maintain
intellectual property protection for our Inspire therapy and system or avoid claims of infringement; the
volatility of the trading price of our common stock; our expectations regarding the use of proceeds from
this offering; and our expectations about market trends.

Investor and Media Contact:
Bob Yedid
LifeSci Advisors
[email protected]
646-597-6989