ELGX Endologix Inc

Endologix, Inc. (NASDAQ: ELGX), developer of minimally invasive treatments for aortic disorders, today announced financial results for the three months ended March 31, 2009.

�We are reporting another quarter of record sales, with total revenue increasing 42% year-over-year and 11% sequentially from the 2008 fourth quarter,� said John McDermott, Endologix President and Chief Executive Officer. �Domestic revenue grew 49% versus the prior-year and 11% sequentially due to increased sales force productivity and new product introductions.

�The 2009 first quarter was the first full sales period to include our surprarenal extensions and Powerlink XL� products, which open new market opportunities for Endologix. Last month, we initiated the full domestic launch of our novel IntuiTrak� Delivery System that features improved delivery and deployment of our Powerlink� System,� he added. �We are currently conducting a limited release with the IntuiTrak Express Delivery System for the Powerlink XL, which is slated for full domestic commercialization in the third quarter.�

First Quarter Financial Results

Total revenue in the first quarter of 2009 was $11.8 million, a 42% increase from $8.3 million in the first quarter of 2008, and an 11% increase from $10.7 million in the fourth quarter of 2008. Domestic revenue of $10.2 million represented a 49% increase compared with $6.8 million in the 2008 first quarter, and 11% from $9.1 million in the 2008 fourth quarter. International revenue increased to $1.7 million, up 13% compared with $1.5 million during the comparable quarter last year and up 7% from $1.6 million in the fourth quarter of 2008.

Gross profit was $8.9 million in the first quarter of 2009 which represented a gross margin of 75% of revenue. This compares with $5.8 million and 70%, respectively, in the first quarter of 2008.

Total operating expenses were $10.0 million in the first quarter of 2009, versus $9.6 million in the first quarter of 2008. Marketing and sales expenses increased to $6.6 million in the first quarter of 2009 from $5.8 million in the comparable quarter last year. Research, development and clinical expenses for the first three months of 2009 were $1.4 million, versus $1.5 million in the same period last year, and general and administrative expenses were $2.1 million, versus $2.3 million for the prior year period.

Endologix reported a net loss for the first quarter of 2009 of $1.2 million, or $0.03 per share, compared with a net loss of $3.7 million, or $0.09 per share, for the first quarter of 2008.

Total cash and cash equivalents were $6.8 million as of March 31, 2009, compared with total cash and cash equivalents of $7.6 million as of December 31, 2008.

�As a result of strong revenue growth, gross margin improvement and our ability to control expenses during the 2009 first quarter, we were able to achieve positive cash flow from operations in the interim months of February and March,� stated Endologix Chief Financial Officer Robert Krist. �We believe this is a strong indication that we are on track to achieve our previously announced goal of having positive cash flow from operations for the second quarter of 2009.�

Conference Call Information

Endologix management will host a conference call to discuss these topics today beginning at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). To participate via telephone please call (888) 463-4487 from the U.S. or (706) 634-5615 from outside the U.S. A telephone replay will be available for two days following the completion of the call by dialing (800) 642-1687 from the U.S. or (706) 645-9291 from outside the U.S., and entering reservation number 92665041. The conference call will be broadcast live over the Internet at www.endologix.com and will be available for 14 days.

About Endologix

Endologix, Inc. develops and manufactures minimally invasive treatments for aortic disorders. The Company�s flagship product is the Powerlink� System, which is an endovascular stent graft for the treatment of 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, specifically with respect to the full commercialization of the IntuiTrak Express Delivery System for the Powerlink XL and achieving positive cash flow from operations for the second quarter 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. Many factors may cause actual results to differ materially from anticipated results, including the success of sales efforts for the Powerlink System and related new products, product research and development efforts, and other economic, business, competitive and regulatory factors. The Company undertakes no obligation to update its forward looking statements. Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2008, and the Company's 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.

ENDOLOGIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In thousands, except per share amounts)

�

Three Months EndedMarch 31,

� 2009 � � 2008 � Revenue: Domestic Product Revenue $ 10,176 $ 6,849 Non � U.S. Product Revenue � 1,658 � � 1,468 � Total Product Revenue: 11,834 8,317 License revenue � --- � � 12 � Total revenue 11,834 8,329 Cost of product revenue � 2,905 � � 2,531 � Gross profit $ 8,929 � $ 5,798 � Gross profit as a % of total revenue 75 % 70 % Operating expenses: Research, development and clinical $ 1,355 $ 1,498 Marketing and sales 6,622 5,800 General and administrative � 2,068 � � 2,272 � Total operating expenses � 10,045 � � 9,570 � Loss from operations $ (1,116 ) $ (3,772 ) Other income: Interest income 12 80 Interest expense (62 ) --- Other expense � (11 ) � --- � Total other � (61 ) � 80 � Net loss � ($1,177 ) � ($3,692 ) Basic and diluted net loss per share � ($0.03 ) � ($0.09 ) Shares used in computing basic and diluted net loss per share � 43,345 � � 42,953 �

ENDOLOGIX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(In thousands)

� March 31,

2009

December 31, 2008 ASSETS Current assets: Cash and cash equivalents $ 6,847 $ 7,611 Restricted cash equivalents 500 500 Accounts receivable, net 7,283 6,371 Other receivables 34 3 Inventories 7,393 7,099 Other current assets � 425 � � 443 � Total current assets 22,482 22,027 Property and equipment, net 2,770 2,993 Goodwill 4,631 4,631 Intangibles, net 7,157 7,508 Other assets � 97 � � 104 � Total Assets $ 37,137 � $ 37,263 � LIABILITIES AND STOCKHOLDERS� EQUITY Current liabilities: Accounts payable and accrued expenses $ 5,752 $ 5,401 Current portion of long term debt � 1,000 � � 750 � Current liabilities 6,752 6,151 Long term liabilities: Long term debt 4,000 4,250 Other long term liabilities � 1,029 � � 1,045 � Long term liabilities � 5,029 � � 5,295 � Total liabilities � 11,781 � � 11,446 � Stockholders� equity: Common stock, $.001 par value; 60,000 shares authorized, and 44,365 and 44,365 shares issued, and 43,870 and 43,870 outstanding

�

44

44

Additional paid-in capital 170,989 170,239 Accumulated deficit (144,908 ) (143,730 )

Treasury stock at cost, 495 shares

(661

)

(661

)

Accumulated other comprehensive income � (108 ) � (75 ) Total stockholders� equity � 25,356 � � 25,817 � Total Liabilities and Stockholders� Equity $ 37,137 � $ 37,263 �