ELGX Endologix Inc

Endologix, Inc. (NASDAQ:ELGX), the developer of the Powerlink� System for the minimally invasive treatment of abdominal aortic aneurysms (AAA), today announced that its Board of Directors has unanimously determined not to pursue the unsolicited indication of interest from Elliott Associates, L.P. dated October 13, 2008. The Board of Directors thoroughly reviewed and considered Elliott Associates' proposal and reached its decision after determining, in consultation with its independent financial and legal advisors Piper Jaffray & Co. and Stradling Yocca Carlson & Rauth that Elliott Associates� proposal is not in the best interests of Endologix�s shareholders. Commenting on the Board�s decision, Endologix President and CEO John McDermott said, �We appreciate the proposal from Elliott Associates and its long-term support of Endologix. However, we believe that Elliott�s proposed valuation does not reflect recent FDA product approvals, increasing gross margin and our expectation of achieving positive operating cash flow in the first half of 2009. Additionally, we believe that volatility in the capital markets has negatively affected micro-cap companies like Endologix, and we expect the situation to improve in the future.� About Endologix Endologix, Inc. develops and manufactures minimally invasive treatments for vascular diseases. Endologix's Powerlink System is an endoluminal stent graft 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 a 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 but not limited to the expectation of achieving positive operating cash flows in the first half of 2009, the accuracy of which are necessarily subject to risks and uncertainties, all of which are difficult or impossible to predict accurately and many of which are beyond the control of Endologix. Endologix undertakes no obligation to update its forward looking statements. Please refer to Endologix� Annual Report on Form 10-K for the year ended December 31, 2007, and Endologix' other filings with the Securities and Exchange Commission, for more detailed information regarding these risks and other factors that may cause actual results to differ materially from those expressed or implied.