Intuitive Surgical Reports New Employee Option Grants for December 2014

Intuitive Surgical, Inc.

today reported that equity awards approved by the Compensation Committee of the Board of Directors, which consists entirely of Independent Directors, were made to 35 new employees. Pursuant to NASDAQ Marketplace Rule 5635(c)(4), the equity awards were granted under the Intuitive Surgical, Inc. 2009 Commencement Incentive Plan, which the Board of Directors of Intuitive Surgical, Inc. adopted for the granting of equity awards to new employees. In accordance with NASDAQ rules, these grants were made under an equity incentive plan without shareholder approval. NASDAQ rules require a public announcement of equity awards to be made under this type of plan. 35 employees were granted a combination of Restricted Stock Units (RSUs) and Stock Options to purchase an aggregate of 9,707 shares of the Company's common stock; 6,846 of the shares granted were Stock Options and 2,861 of the shares granted were RSUs. Both the RSUs and Stock Options vest over four years. The Stock Options expire in 10 years assuming continued employment. No officers received any award under this plan. The exercise price for the Stock Options granted is $508.865 which was the closing price of Intuitive Surgical, Inc.'s common stock on the NASDAQ Global Market as such price was reported by NASDAQ on December 5, 2014. The Company's policy is to issue RSUs and Stock Option grants to new employees, where equity makes sense, on the fifth business day of every calendar month.