Shanghai, China – On August 22, MicroPort Shanghai CardioFlow Medtech Co., Ltd. ("MicroPort®CardioFlow"), a wholly owned subsidiary of Shanghai MicroPort Medical (Group) Co., Ltd. ("MicroPort®"), entered into financing agreements at a consideration of RMB430million and achieved a valuation of RMB2.1 billion after this round of financing.

MicroPort®, MicroPort® CardioFlow and other related original shareholders of MicroPort® CardioFlow signed the Share Transfer and Capital Increase Agreement and Shareholders' Agreement with Huajie (Tianjin) Medical Investment Partnership (Limited Partnership) ("Huajie Tianjin"), CICC Pucheng Investment Corporation Limited ("CICC Pucheng"), and Beijing Huatai Ruihe Medical Industry Investment Center (Limited Partnership) ("Huatai Ruihe"). The Investors subscribed for approximately 25% interest to be newly issued in the enlarged share capital of MicroPort® CardioFlow upon completion of the transactions at an aggregate consideration of RMB430million. Upon the completion of the transactions, MicroPort Scientific Corporation holds the controlling 66% stake in MicroPort® CardioFlow.

Huajie Tianjin is a private equity investment fund mainly investing in medical and healthcare industries. Its parent company is China Renaissance, China's leading Financial Institution serving the new economy. CICC Pucheng is a wholly owned subsidiary of China International Capital Corporation Limited ("CICC") which is China's first joint venture investment bank and a recognized leader of China's investment industry. Huatai Ruihe is a private equity investment fund primarily focused on medical and healthcare industries. It parent company is Huatai Securities, a leading integrated securities group in China and is the first securities companies approved by China Securities Regulatory Commission.

 "This is our first project to attract investment and win high recognition around noted investors while still at clinical trial stage. This transaction fully demonstrated the recognition of high-profile investors in the future development of MicroPort® CardioFlow as well as the confidence of the capital market in the promising prospect of its cardiac valve intervention medical device and the cardiac valve intervention market," said Dr. Qiyi Luo, Chief Technology Officer of MicroPort® and the Chairman of MicroPort® CardioFlow. "At the same time, this transaction will bring in several well-known strategic investors and rich market resources for MicroPort® CardioFlow to fund its product R&D, manufacturing and market expansion, and thereby to promote its overall development and enhance its competitiveness."

 "We are excited to see that another subsidiary of MicroPort® successfully won recognition of investors with its promising products. This transaction will also energize the sustainable growth of our company with capital strength," said Dr. Zhaohua Chang, MicroPort® Chairman and Chief Executive Officer. "As an innovative, high-tech medical device company, MicroPort® will continue to diversity its product offering to benefit more patients."

MicroPort® CardioFlow is a leading company in China engaged in the research, development and manufacturing of high-end cardiac valve intervention medical device. It has an extensive research and development layout of innovation cardiac valve intervention business. One of its primary products, VitaFlow™ Transcatheter Aortic Valve and Delivery System ("VitaFlow™"), is indicated for heavily calcified aortic stenosis. Aortic stenosis is one of the most common and severe valvular heart diseases among elders, and the prevalence rate increases significantly with ages. In Western countries, the incidence rate of aortic stenosis is around 2% among people aged 65 and above and 4% in people aged 85 and above. If without immediate treatment, the median survival is two to three years. Transcatheter Aortic Valve Implantation ("TAVI") is a revolutionary interventional procedure to bring better treatment for severe symptomatic aortic stenosis patients. Up to now, more than 300,000 patients in more than 65 countries had received TAVI treatment, while the amount of TAVI cases reached 83,000 in 2016. With the aging population and expanding indications, TAVI will increase four-fold in the next 10 years, and the TAVI market size is expected to develop to USD5 billion by 2021. The first TAVI case was introduced to China in 2010 by Professor Junbo Ge, an academician of Chinese Society of Sciences and a renowned cardiologist, and so far only 800 cases have been performed in clinical studies, which shows the market of TAVI products has a large room for expansion in China.

VitaFlow™ adopts inventive valve design that effectively reduces perivalvular leak and its exclusive hybrid driven delivery system largely simplifies complex operation. Its premarket clinical trial was organized by Professor Junbo Ge, and completed by Zhongshan Hospital of Fudan University leading eleven domestic hospitals. In August 2016, VitaFlow™ was granted the Green-Path by the China Food and Drug Administration ("CFDA"), a special fast-track procedure for innovative medical devices to gain CFDA approval, which will significantly shorten the approval time for VitaFlow™. The device will complete one-year clinical follow-up in 2017 and is expected to gain CFDA approval in 2018.