Revenue Increases 97% Year over Year

Gross Profit Increases 60% from First Quarter 2009

BEDFORD, Mass., Aug. 4 /PRNewswire-FirstCall/ -- Insulet Corporation (Nasdaq: PODD), the leader in tubing-free insulin pump technology with its OmniPod(R) Insulin Management System, today announced financial results for the three and six months ended June 30, 2009.

Second Quarter 2009 Results

Second quarter 2009 revenue increased 97% to $14.6 million, compared to $7.4 million in the second quarter of 2008. On a sequential basis, revenue increased 17% from $12.5 million in the first quarter of 2009. Gross profit for the second quarter of 2009 was $3.2 million, or 22%, compared to a gross loss of $2.4 million, or 32%, for the second quarter of 2008. Operating loss for the second quarter of 2009 was $16.4 million, a 26% improvement compared to operating loss of $22.1 million in the second quarter of 2008. Total operating expenses were $19.6 million in the second quarter of 2009, compared to $19.8 million in the second quarter of 2008. Net loss for the second quarter of 2009 was $20.2 million, or $0.73 per share, a 16% improvement compared to a net loss of $24.0 million, or $0.87 per share, for the second quarter of 2008.

"Our strong second quarter results reflect Insulet's focus on innovation, expansion and efficiency," said Duane DeSisto, president & chief executive officer of Insulet. "We drove a record level of referrals, improved our gross margins and launched our second generation PDM. The easy-to-use OmniPod System continues to deliver on our promise to make diabetes a smaller part of life."

For the six months ended June 30, 2009, revenue increased 92% to $27.1 million from $14.1 million for the first six months of 2008. Gross profit for the first six months of 2009 was $5.2 million, or 19%, as compared to a gross loss of $5.7 million, or 40%, in the first six months of 2008. Operating loss for the six months ended June 30, 2009 was $33.9 million as compared to an operating loss of $42.2 million in the six months ended June 30, 2008. Net loss for the first six months of 2009 was $39.9 million, or $1.43 per share, compared to $43.9 million, or $1.60 per share, for the first six months of 2008. As of June 30, 2009, the Company had cash and cash equivalents of $52.4 million compared to $56.7 million at December 31, 2008.

Recent Highlights

• In June 2009, the Company released its new Personal Diabetes Manager (PDM) with features such as a sleek new look, color LCD screen and enhanced data download capability.
• The Company, in July, introduced the industry's first program for environmentally safe disposal of insulin pump components for its OmniPod Insulin Management System. The Eco-Pod program will reduce the impact of used Pods on the environment.
• At the June meeting of the American Diabetes Association, research was presented demonstrating exciting progress in the Juvenile Diabetes Research Foundation's Artificial Pancreas project. The OmniPod System continues to be sought after by leading researchers and institutions and is being used at the majority of the Artificial Pancreas Project study sites. Studies using the OmniPod System from the Sansum Diabetes Research Institute and UC Santa Barbara, as well as the University of Virginia showed advances in automating and refining the algorithms necessary for a "closed loop" system.
• Insulet received the CE Mark approval for the OmniPod System in April 2009. The Company is actively reviewing various distribution alternatives to distribute the OmniPod System in Europe and in other countries that recognize the CE Mark.
  

Guidance

The Company estimates its third quarter 2009 revenues to be $16.5 to $17.5 million. The Company is updating its estimate for full year 2009 revenue to be in the range of $58 to $65 million from its earlier estimate of $55 to $65 million. The Company is also updating its estimate for full year 2009 operating loss to be in the range of $55 to $60 million from its earlier estimates of $50 to $60 million.

Conference Call

Insulet will host a conference call on Tuesday, August 4, 2009 at 5:00PM Eastern time to discuss the Company's second quarter 2009 results and present information concerning its business, strategies and outlook. To listen to the conference call, please dial 866-804-6921 for domestic callers and 857-350-1667 for international callers. The passcode is 29253441. A replay of the conference call will be available two hours after the start of the call through August 11, 2009 by dialing 888-286-8010 (domestic) and 617-801-6888 (international), passcode 66405735.