Kips Bay Medical Reports Close of Underwriters' Partial Exercise of Overallotment Option

Kips Bay Medical, Inc.

along with Manny Villafaña, its Founder, Chairman and CEO today announced the closing of the underwriters' purchase from the Company of 475,000 shares of Company common stock at a price of $0.65 per share pursuant to the over-allotment option granted to the underwriters in connection with the Company's follow-on offering of common stock, which offering closed on December 28, 2012. Sunrise Securities Corp. gave the Company notice of the exercise on January 24, 2013. Sunrise Securities Corp. was the sole book-running manager and Aegis Capital Corp. was a co-manager for the offering.