ELGX Endologix Inc

Endologix, Inc. (Nasdaq:ELGX) today announced, as required under Nasdaq Marketplace Rule 4350(b), the filing with the Securities and Exchange Commission (SEC) of Endologix's Annual Report on Form 10-K for the year ended December 31, 2005 on March 16, 2006, which includes an explanatory paragraph from PricewaterhouseCoopers LLP, Endologix's registered independent public accounting firm, in its audit report referring to Endologix's financial statements as of December 31, 2005. This explanatory paragraph refers to Endologix's losses since inception, and states that there exists a substantial doubt as to Endologix's ability to continue as a going concern. "We are highly confident in our ability to continue driving sales growth for the Powerlink(R) System as we continue gaining physician acceptance. Our four sequential quarters of increased domestic product usage indicates that a growing number of physicians are finding a place for the Powerlink System in their practices," said Paul McCormick, president and chief executive officer of Endologix. "Data from clinical studies using our Powerlink System are exceptionally solid and we are refining sales force hiring criteria to mirror those of our most successful sales representatives, with the expectation of increasing throughput from our sales force. "Based on our expected revenue from sales of the Powerlink System and our ability to adjust certain operating expenses if revenues do not meet our expectations, we believe that our current cash balance, in combination with cash receipts generated from product sales, will be sufficient to fund ongoing operations through at least December 31, 2006," he added. "However, if appropriate, we may consider alternatives for additional financing, which could involve equity or debt." About Endologix Endologix, Inc. develops and manufactures minimally invasive treatments for vascular diseases. Endologix's Powerlink System is an endoluminal stent graft (ELG) for treating abdominal aortic aneurysms (AAA). AAA is a weakening of the wall of the aorta, the largest artery in the body, resulting in a balloon-like enlargement. Once AAA develops, it continues to enlarge and, if left untreated, becomes increasingly susceptible to rupture. The overall patient mortality rate for ruptured AAA is approximately 75%, making it the thirteenth leading cause of death in the U.S. Additional information can be found on Endologix's Web site at www.endologix.com. Except for historical information contained herein, this news release contains forward-looking statements, including those relating to future revenues, operating expenses, and financing alternatives, the accuracy of which are necessarily subject to risks and uncertainties, including risks related to changes in market acceptance of the Powerlink System, all of which are difficult or impossible to predict accurately and many of which are beyond the control of Endologix, all as more fully described in the risk factors and other matters set forth in Endologix's Annual Report on Form 10-K for the year ended December 31, 2005, and Endologix's other filings with the Securities and Exchange Commission.