GI Dynamics Announces Research Collaborations with GlaxoSmithKline and Medtronic

LEXINGTON, Mass., U.S. and SYDNEY, Australia – 4 January 2013 – GI Dynamics, Inc. (ASX: GID) today announced that the company has entered into separate research collaborations with GlaxoSmithKline (NYSE: GSK) and Medtronic (NYSE: MDT). The collaborations are focused on understanding how EndoBarrier® impacts continuous glucose levels (Medtronic) and evaluating hormonal changes in response to EndoBarrier Therapy (GSK) to further characterize the mechanism of action (MOA) of the EndoBarrier. Additional details of the collaborations are confidential.

"We are pleased to be collaborating with two of the world's leading diabetes development companies – Medtronic in the device segment and GSK in the pharmaceutical sector," stated Andy Levine, founder and chief technology officer of GI Dynamics. "We expect these collaborations will lead to a better understanding of the MOA of EndoBarrier and may lead to improvements in the device, as well as potential combinations of drug treatment and EndoBarrier Therapy to optimize patient outcomes."

EndoBarrier is a thin, flexible, tube-shaped liner that forms a physical barrier between food and a portion of the wall of the intestine. In 13 clinical studies involving more than 500 patients, EndoBarrier has been shown to achieve rapid reductions in blood sugar levels and weight loss of approximately 20 percent in 12 months.

EndoBarrier is considered an investigational new device in the United States; however, it received CE Mark approval in 2010 in Europe, and approval by the Therapeutic Goods Administration in Australia in 2011 for the treatment of type 2 diabetes and/or obesity for up to 12 months. EndoBarrier is entering a pivotal clinical trial in the United States and is currently commercially available in select countries in Europe, including Germany, Austria, the United Kingdom and the Netherlands, as well as Australia and Chile.

About EndoBarrier

EndoBarrier Therapy is a revolutionary, non-surgical, non-pharmaceutical treatment for people with type 2 diabetes and/or obesity. Clinical studies demonstrate that EndoBarrier Therapy achieves rapid and dramatic reductions in blood sugar levels and weight loss of approximately 20 percent in 12 months. EndoBarrier Therapy is a convenient and discreet treatment for people whose diabetes medications are no longer effective, who are at risk for serious health complications, and who want to avoid the progression to daily insulin injections. EndoBarrier Therapy does not have many of the risks associated with surgical procedures or the side effects of medications. Involving a brief endoscopic procedure, it also enables patients to avoid the lifestyle changes and frequent post-surgical interventions associated with irreversible bypass surgery and gastric banding. This first-of-its-kind therapy is helping patients around the world fight their battle against type 2 diabetes and obesity while providing a pathway to a healthier lifestyle. For more information, please visit www.EndoBarrier.com.