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Cyberonics Reports Strong Fiscal 2010 First Quarter Results
Date:8/19/2009

n on a positive note, with a double-digit sales increase," commented Dan Moore, Cyberonics' President and Chief Executive Officer. "Again, we achieved strong growth in operating and net income. Our core U.S. epilepsy business showed continued growth, and our international operations posted another solid performance, with international units increasing almost 12% and revenues again exceeding $7 million.

"During the quarter, we made significant progress in obtaining physician input to our development programs, reinforcing Cyberonics as the leader in devices for epilepsy, and rebuilding our credibility. We conducted six meetings with a total of 71 epilepsy physicians during which we provided considerable detail on the enhanced development efforts around seizure detection, seizure recording and responsive stimulation. Two additional educational symposia with epilepsy specialists were held during the quarter, and more than 20 are planned for the fiscal year. Feedback from these and other physician meetings provide important input into our product development process.

"With respect to our international business, unit growth has continued to improve this quarter. We sold the VNS Therapy(TM) System into 41 countries during the quarter, indicative of its widespread acceptance as an important treatment option. We are also pleased to report that the Japanese regulatory authorities have scheduled the audit of our quality system for the first week of September. This represents another important milestone in making VNS Therapy available to Japanese patients with epilepsy.

"With our recent filing of our 2009 proxy statement, we announced that two of our long-standing directors would not be standing for reelection and that the Board would be reduced to seven from the date of our shareholder meeting on September 24. Both Alan Olsen and Michael Strauss have made important and valuable contributions to the company, and
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SOURCE Cyberonics, Inc.
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