New Patients Shipments up More than 35% Compared to the previous Quarter

Production Reaches 200,000 OmniPods per Month

BEDFORD, Mass., Aug. 12 /PRNewswire-FirstCall/ -- Insulet Corporation (Nasdaq: PODD), the leader in patch pump technology with its OmniPod(R) Insulin Management System, today announced financial results for the second quarter and six months ended June 30, 2008.

Second quarter 2008 reported revenue increased 131% to $7.4 million compared to $3.2 million in the second quarter of 2007. During the second quarter of 2008, approximately 1,650 new patients began using the OmniPod System, an increase of more than 35% compared to the first quarter.

On a sequential basis, reported revenue increased 11% compared to the first quarter of 2008. Beginning in the first quarter of 2008, the Company changed its estimate of deferred revenue resulting in a positive impact in the first quarter of 2008 and a smaller negative impact in the second quarter of 2008. When adjusted for the change in deferred revenue, the underlying sequential growth in non-GAAP revenue was 38% from the first to the second quarter of 2008. See 'Non-GAAP Financial Information' below for a reconciliation of the GAAP financial measure to the non-GAAP financial measure.

Net loss for the second quarter of 2008 was $23.9 million, or $0.87 per share, compared to a net loss of $12.7 million or $0.99 per share, for the second quarter of 2007. Total operating expenses increased to $19.8 million in the second quarter of 2008, compared to $8.7 million in the second quarter of 2007. Most of the increase in operating expenses was related to higher sales and marketing expenses, reflecting the significant expansion of the Company's sales organization this year.

The Company recorded $1.5 million in interest expense as a result of the repayment and termination of its term loan in the second quarter of 2008.

'Our impressive jump in manufacturing production and new customer growth reflect our unwavering focus on expanding our commercial footprint,' said Duane DeSisto, Insulet's president and chief executive officer. 'In the second quarter, we strengthened our sales and marketing infrastructure, achieving nationwide sales force coverage to respond to the growing demand for the OmniPod System. We also increased our direct to consumer marketing initiatives, and, in this quarter, implemented a broad sampling program with our unique Product Demonstration Kit. Looking ahead, we continue to believe that our innovative and easy-to-use product is well positioned to address a significant, unmet need in the diabetes therapy market.'

For the six months ended June 30, 2008, revenue increased 170% to $14.1 million from $5.2 million for the same period of 2007. Net loss for the first six months of 2008 was $43.8 million, or $1.59 per share, compared to a net loss of $24.2 million, or $3.63 per share, for the same period in 2007. Operating expenses for the first six months of 2008 increased to $36.5 million from $17.0 million for the same period in 2007, primarily driven by increased sales and marketing expenses.

Reported revenue for the first six months of 2008 was favorably impacted by $1.1 million due to a change in the Company's estimate of deferred revenue.

As of June 30, 2008, the Company's cash and cash equivalents totaled $99.1 million, compared to $94.6 million as of December 31, 2007.

Recent Highlights

-- The Company's production capacity reached 200,000 Pods per month in June 2008. Expanding manufacturing capacity is a critical element of the Company's strategy to increase volume and reduce per unit production costs.

-- Insulet signed a development agreement with Ferring Pharmaceuticals, of Saint Prex, Switzerland, for the first non-diabetes drug delivery application for the OmniPod System.

-- The Company completed a private offering of $85 million in aggregate principal amount of its convertible senior notes due 2013 to qualified institutional buyers. The notes will pay interest semi-annually at a rate of 5.375% per annum and mature on June 15, 2013. The notes will have an initial conversion rate of 46.8467 shares of the Company's common stock per $1,000 principal amount of the notes, representing an initial conversion price of approximately $21.35 per share of common stock.