Sunshine Heart Reports Inducement Grant Under NASDAQ Listing Rule 5635(c)(4)

Sunshine Heart, Inc.

, today announced that on January 14, 2016, the Compensation Committee of its Board of Directors, which is composed entirely of independent directors, approved an equity award to Eric Lovett, Ph.D. under Sunshine Heart's New-Hire Equity Incentive Plan. This grant was made as a material inducement to Dr. Lovett's entering into employment with the Company.  The equity award was approved in accordance with NASDAQ Listing Rule 5635(c)(4), which also requires a public announcement of equity awards that are not made under a stockholder approved equity plan. In connection with entering into employment with Sunshine Heart, Dr. Lovett, who was not previously an employee or director of Sunshine Heart, received an option to purchase an aggregate of 104,000 shares of the Company's common stock. The option has an exercise price of $1.06 per share, which is equal to the closing price of the Company's common stock on January 14, 2016.  The option has a ten-year term and vests over a period of four years, with 25% vesting one year after the date of grant and the remaining 75% vesting in