“…advancing, refining, and improving cardiac surgery.”

October, 2013

Disclaimer Statement

Certain statements in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are provided under the protection of the safe harbor for forward-looking statements provided by that Act. Forward-looking statements involve risks and uncertainties which could cause results to differ materially from those projected and are detailed from time to time in our SEC filings, including our annual report on Form 10-K filed on August, 2013 and subsequent periodic reports. We encourage you to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statements contained in this release.

Our Founder, Chairman and CEO

Co-inventor of the first lithium powered pacemaker and founder of Cardiac Pacemakers, Inc./Guidant. All pacemakers now incorporate this technology.

Co-developer of the St. Jude heart valve and founder of St. Jude Medical, Inc. This is the most commonly used prosthesis in the world.

Co-inventor of the ATS heart valve and founder of ATS Medical, Inc. (now part of Medtronic, Inc.) Founder of Kips Bay Medical, Inc.

1

Manny Villafaña is our founder and the Chairman and CEO of Kips Bay Medical. Mr.

Villafaña is globally recognized as a “Living Legend of Medicine”, an award-winning USA

Master Entrepreneur, a member of the Minnesota Business and Science & Technology Halls of

Fame and the past founder of medical device companies that have transformed the industry

of cardiac surgery and improved the lives of millions.

Page 3

$400 Million

A Long History of Value Creation

$27.2 Billion

$15.4 Billion Market Cap

Page 4

What is CABG?

Coronary Artery Bypass Grafting involves the construction of an alternative path to bypass a narrowed or occluded coronary artery and

restore blood flow from the aorta to an area past the occlusion.

Coronary Artery Bypass Grafting (CABG)

Page 5

Internal Mammary Artery

Saphenous Vein Synthetic Graft

Implant Years

Vein Grafts Don’t Last as Long as Arterial Grafts

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Graft Patency

Coronary Artery Bypass Grafts

Page 6

What We Do

The eSVS Mesh is a kink-resistant, extravascular prosthesis made of knitted nitinol (nickel/titanium alloy) wire and is designed to give an implanted vein the physiological attributes of an artery.

eSVS® Mesh = external saphenous vein support

Page 7

CABG - Standard of Care for Multi Vessel Disease

Synergy Between Percutaneous Coronary Intervention with Taxus and Cardiac Surgery, or “SYNTAX”, study Published in the New England Journal of Medicine March 2009 Evaluated long-term patient outcomes based upon survival rate and need for re-intervention

12 months after surgery Concluded CABG is the more effective long-term treatment for coronary artery disease

January 2008 study compared drug-eluting stents with CABG in multi-vessel coronary disease

New York study as Published in the New England Journal of Medicine Determined death rates and revascularization rates were higher in patients receiving drug-

eluting stents than in patients receiving CABG CABG was superior in spite of patients receiving CABG being older and having more severe

coronary disease

Practice Guidelines Recommend Bypass Surgery for Triple Vessel and Left Main Disease American Heart Association journal Circulation 2009 CABG is the only appropriate method of coronary revascularization for patients with triple

vessel disease or left main disease

Page 8

CABG Procedures: 800,000 annually with

3.5 Grafts per Procedure of which

2.5 Grafts per Procedure are Saphenous

2.0 Million Potential eSVS MESH Grafts Annually Wholesale ASP @ $1,200 per unit

Retail ASP @ $2,500 per unit 70%+ margin potential

Annual World-Wide Market

Page 9

=

• International Feasibility Trial – CE Mark Approval – May 2010 Created significant questions for the FDA We answered questions and concerns with follow-up angio’s from

first International Trials

• Dubai, UAE – single center experience • Germany, Italy, Spain, Switzerland – multiple center

experience • 5th of February! First USA Implant for feasibility trial

for U.S. FDA. Texas Heart, Mayo Clinic, Emory Heart, N.E. Georgia have now enrolled patients.

10

FDA Clinical Progress of the eSVS Mesh

Page 10

• Dr. Uwe Klima, Professor, MD - American Hospital Dubai • Retrospective implant study with prospective follow-up of

commercially implanted eSVS Mesh • All eligible SVGs treated with eSVS Mesh • Patients underwent follow-up CT angiography 7-12 months post

implant • Approx. 40 eSVS Mesh devices implanted

Dubai, UAE Retrospective Study

Page 11

93.3% 86.3%

60%

70%

80%

90%

100%

Klima Study Patients International Control Group

Patency Rates at 7-12 months

• OUS Sites – University Hospital Bern, Switzerland - Dr. Lars Englberger (International PI) – Bordeaux University Hospital, Pessac, France - Prof. Louis Labrousse – C.H.U. Dupuytren, Limoges, France - Dr. Marc Laskar – G. Pasquinucci Heart Hospital, Massa, Italy - Dr. Mattia Glauber – Brothers of Mercy Hospital, Trier, Germany – Prof. Ivar Friedrich – University Hospital, Munster, Germany – Prof. Sven Martens – University of Freiburg, Germany - Dr. Matthias Siepe – 8th site tbd

• Potential US Sites (include 4 US hospitals - first four to receive approval) – Cleveland Clinic, Cleveland, OH - Dr. Joseph Sabik – Mayo Clinic, Rochester, MN – Dr. Hartzell Schaff – Texas Heart Institute, Houston, TX – Dr. Billy Cohn – Emory University Hospital, Atlanta, GA - Dr. John Puskas (USA PI) – Lenox Hill Hospital, New York, NY – Dr. Gregory Fontana – Beth Israel Medical Center, New York, NY – Dr. Robert Tranbaugh – NE Georgia Health System, Gainsville, GA – Dr. Alan Wolfe

eMESH I Trial Sites

Page 12

A multi-center, randomized study designed to demonstrate feasibility, initial safety and performance of the eSVS Mesh as an external vein support device for use over saphenous vein grafts during coronary artery bypass:

• Prospective, randomized study of up to 120 patients. • 8 investigational sites in Europe and 4* in the U.S. • FDA requires 25 implants for each size (3.5mm, 4.0mm and 4.5mm) with a

minimum of 80 total patients. • Primary safety endpoint is the rate of major adverse coronary events (MACE)

within 30 days of the procedure. • Primary efficacy endpoint is the Angiographic patency rate at six months (<75%

stenosis). • Post study – annual telephone follow-ups for five years.

“eMESH I” Clinical Feasibility Trial

Page 13

* Staged enrollment in the U.S. – FDA requiring early review of results from 10 U.S./O.U.S. patients prior to allowing full U.S. enrollment. Currently approved for 15 patients in the U.S.

Independent distributor model We require distributor to have an established client base in cardiac surgery All contracts in US dollars

Mr. Villafaña has established commercially successful independent distributor networks in past companies: Cardiac Pacemakers, Inc./Guidant Corporation St. Jude Medical, Inc. ATS Medical, Inc.

Early phase of commercial sales with approximately $250K in annual sales in 6 countries

International Marketing Strategy

Page 14

Page 15

Our issued patents and pending patent applications include claims directed towards:

• resilient and compliant structure. • providing structural support which inhibits vessel expansion. • providing a graft with physiological attributes similar to those of an artery. • methods critical to the surgical procedure. • delivery system design and implant deployment method.

5 issued patents and 2 applications pending in the US

6 issued international patents and 6 applications pending • includes 1 patent from the European Patent Office which has been

registered and validated in 8 countries.

Solid Intellectual Property Position

Page 16

Knitted Nitinol

Technology

CABG Surgery

Dialysis Access Grafts

Synthetic Grafts for

CABG

Peripheral Bypass Surgery

Platform for the Future

Page 17

Capitalization June, 2013

Debt --- 0.00%

Common Stock ($0.01 par value, 40M authorized)

Outstanding today 26,979,079 93.13%

Option Pool: Granted & Outstanding (WA exercise price $3.11) 1,387,500 4.79%

Total Option Pool 1,387,500 4.79%

Underwriters’ Options 603,125 * 2.08%

Total Common and Potential Options 28,969,704 100.00%

Page 18

New medical technology in a company founded by Manny Villafaña. CE Mark approval & over 500+ implants to date – early indication of

device success. Experienced management team with history of success. eSVS MESH technology to address limitations in CABG surgery with

world-wide potential for 2.0 million eSVS Mesh grafts annually. Very low (venture capital level) market capitalization. Feasibility trial for U.S. FDA is in process. Platform technology; ideal growth opportunity for strategic partner. Strong IP position with 14 patents covering core device technology &

design issued in 12 countries. Clean & efficient capital structure:

- Low cash burn rate. - No debt / No preferred stock.

Investment Highlights

Page 19

“…advancing, refining, and improving cardiac surgery.”

Thank You!