InvestorNewsletter

Dear Shareholders,

On October 19, 2015, we announced the initial results from the AVERT™ clinical trial, which was conducted to strengthen marketing claims for the already commercialized AVERT System. We received FDA clearance for three additional claims: dye savings, reflux reduction and image quality. These three claims dramatically strengthen our product offering and sales approach. Our sales representatives are now able to sell AVERT as the only product on the market to have a controlled, randomized, multi-center trial, which proves a reduction in contrast volumes without compromising image quality. Importantly, this means that AVERT is the only product that enables physicians to comply with the cardiology and radiology society guidelines that urge dye-sparing approaches with at-risk patients.

The trial was not able to show a statistically significant reduction in CIN rates. While this was disappointing, we remain confident in AVERT and its commercialization prospects. Osprey has a long history of discussion with the medical community and a very strong understanding of its needs. From these discussions, we know that saving dye is the most important factor in preventing acute kidney injury (AKI), a finding that is well documented throughout medical literature. We have great confidence in our growth trajectory and ability to commercialize our product suite as a result.

DyeVert™ Launches in Texas

DyeVert™ Pilot Study Enrolled

The November launch of the next-generation DyeVert™ System is helping Osprey to rapidly

establish a solid market foothold in both the San Antonio and Houston sales territories. The DyeVert™ System has accelerated new customer acquisition. Within 45 days of launch (DyeVert clearance October 15, 2015), Osprey’s sales team successfully performed product evaluations at 13 different hospital facilities. Three of these accounts have already placed revenue orders, along with repeat orders from two hospitals.

Initial physician feedback is indicating that DyeVert’s ease-of-use benefits are a “game-changer,” positively affecting Osprey’s current selling paradigm. DyeVert’s second generation enhancements include a self-adjusting design that automatically adapts to different catheter and contrast types. The system also diverts contrast dye during the procedure even on puffs (small dye injections of 1-3mL), which significantly contributes to the overall dye diversion. This has resulted in faster customer uptake due to stronger physician advocacy at the beginning of the sales process, along with greater catheter lab staff support at the end of the sales process necessary for consistent, repeat usage.

To see a product demonstration of the DyeVert System, refer to: http://www.ospreymed.com/products-dyevert.php

Osprey has completed patient enrolment in its DyeVert pilot study. Study site leaders were Dr. James Sapontis (Australia) and Dr. Steffen Desch (Germany). This non-randomized, 44 patient

trial evaluated the amount of contrast dye savings while maintaining image quality. Trial enrolment was completed in November. Full data analysis is currently underway with the published results anticipated in Q2 2016. The data collection records show strong product performance with average contrast dye savings in the range of 35-45%.

Dr. Sapontis commented, “I think the DyeVert System is easy to use, can reduce contrast while maintaining image quality and is well suited for patients at risk of contrast-induced kidney damage.”

MIKE McCORMICK

MESSAGE FROM THE PRESIDENT AND CEO

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12TH Edition, DECEMBER 2015

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Osprey is applying its sales blueprint established during the Texas sales pilot to rapidly expand its direct sales force model in the US. These sales territories will be the areas of the US with

the highest incidences of acute kidney injury (AKI) and chronic kidney disease (CKD). These areas present the largest untargeted market opportunity for Osprey’s dye reduction technology. Osprey has recently hired three new sales reps for the Georgia/South Carolina, Alabama/Mississippi, and Florida territories. These reps will be trained in the month of December and will be in place to begin selling in their respective territories by January 1st. Osprey is also currently recruiting for sales reps in the Los Angeles and the Chicago area territories. Additional sales reps will be hired throughout next year in which Osprey anticipates it will have up to 20 sales reps in place by year end 2016.

Osprey on Track for Rapid US Sales Expansion

Our full attention is now directed at growing AVERT and DyeVert sales. We are pleased to report that we are increasing the number of direct sales reps as a result of the trial, and we are on track to add five new sales territories by the end of 2015 and up to 20 reps by the end of 2016. We will hire these new sales reps primarily in the US southern states where there is a high incidence of chronic kidney disease. Additionally, new reps will focus on selling to participants in the AVERT clinical trial as they have firsthand knowledge of the benefits of our dye-savings system.

In October, we announced FDA clearance and CE Mark for the DyeVert System. This self-adjusting system has sterile, single-use disposable components that have a number of advantages. In addition to being easier to use than the AVERT System, the product is fully disposable and does not require a non-sterile capital component. We are very pleased with the early results of our sales of the DyeVert System. In the 45 days since the launch of the system, we have had 13 hospitals evaluate the product and three have placed orders. This early success is coming quicker then what we originally experienced with the AVERT Plus System, and it is reflective of the ease of use of the DyeVert. Our initial sales efforts have demonstrated an impressive sales trajectory for DyeVert, and we are confident that our new sales reps will drive accelerated market adoption.

The period was a significant one in the Company’s history. On balance, we are pleased with the Company’s track record and the significant opportunities for growth. We look forward to the next period, which will be characterized by the full commercialization of our products and ongoing developments with DyeVert. I would like to thank the employees of Osprey for their passionate pursuit of methods to reduce AKI and also to you, our investors, for your continued support.

Mike McCormickMike McCormick, Osprey Medical President & CEO

Shareholder Update Continued...

In October, Osprey received FDA Clearance for its DyeVert™ Contrast Modulation System.

The DyeVert System further automates contrast modulation during manual injections as it self-adjusts for catheter and contrast type without needing user adjustments that were required on the AVERT. The system diverts contrast dye during the procedure even on puffs (small dye injections of 1-3mL), which significantly contributes to the overall dye diversion. The product is easier to set up and use, and provides seamless integration into the catheter lab workflow.

As this 2nd generation product is based on the same fundamental design of the AVERT System, Osprey has submitted an application to the FDA to bridge the current claims of dye reduction, image quality and reflux reduction to the DyeVert System. If Osprey achieves the bridging, then it will have two products on the market that are FDA cleared dye-savings products. Osprey’s Research and Development group is developing contrast monitoring (Smart Syringe) compatibility with DyeVert, which is expected to be completed in mid-2016. This will allow DyeVert to comply with the cardiology and radiology society guidelines that require dye-sparing approaches with at-risk patients.

DyeVert™ Receives FDA Clearance

Prevalence of Kidney Failure

– Existing sales territories

– Recently hired

– Currently recruiting

– Planned hires in 2016

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In October, Osprey obtained FDA clearance for three expanded AVERT marketing claims:

Dye savings Image Quality Reflux Reduction

To obtain this clearance, Osprey had to provide statistically significant evidence to the FDA to prove that the device is safe and provides a clinically meaningful benefit to patients. Importantly, the FDA sets a very high bar for approval and no other technology on the market has achieved such recognition.

For each of Osprey’s stakeholders, this translates into the following benefits:

Osprey Successfully Obtains FDA Clearance for Key Marketing Claims

For At-RiskPatients

The only FDA indicateddevice for contrastvolume reduction

• For patients, this clearance means they can now undergo necessary heart procedures with additional peace of mind and the comfort of knowing that their physician is doing everything possible to protect their kidneys from further damage, including the risk of death and/or dialysis.

• For physicians, the two primary modifiable factors that physicians try to control in poor kidney function patients is hydration and dye dose. AVERT is the only FDA cleared medical device that is proven to reduce dye. In addition, use of AVERT provides physicians with increased confidence that they are exercising best medical practice, in line with the cardiology and radiology guidelines that call for minimal dye dose in renal-impaired patients.

• For hospitals, this clearance means there is now a technology available, which may help hospitals reduce the risk of kidney damage and 30-day readmission for the 25% of angiography patients who are at a high risk of poor outcomes. ObamaCare is changing the economic landscape for medical care in the United States and penalties are now being imposed on hospitals with high 30-day readmission rates. Hospital administrators are very sensitive to lost revenue from government penalties and costs resulting from increased length of stay without payer reimbursement offset. By using AVERT, hospitals can help avoid the risk of higher costs while providing a greater level of patient care.

• For Osprey Medical, this clearance means we are now in a solid position to rapidly expand our US sales force. Following our pilot sales efforts in Texas, Osprey has a well-established blueprint for commercial success that will guide our rapid sales force expansion. These new claims will allow our sales force to directly sell physicians the benefits of dye reduction without compromised image quality by way of reducing unwanted dye reflux. Our sales force will reference AVERT’s FDA clearance, which we expect will accelerate market adoption.

Initial DyeVert™ Clinical Experience Presented at TCT

Dr. Steffen Desch, Lübeck Germany, presented the initial human clinical experience of

the DyeVert System at the Transcatheter Cardiovascular Therapeutics (TCT) Meeting held in San Francisco on October 11-15, 2015. This meeting is one of the world’s largest gatherings of heart specialists, hosting over 6,000 medical professionals in the fields of interventional cardiology and vascular medicine. Dr. Desch was an invited TCT faculty speaker as part of a breakfast symposia dedicated to the topic of contrast-induced AKI.

Dr. Desch presented that DyeVert was easy to use with system setup and priming only took an average of 2.2 minutes. The amount of contrast dye diverted ranged over different types of cases, but were well above 30% in every case. Also important, the image quality in these cases was found to be acceptable (defined as “good to adequate” by the physician for sound clinical decision making) in over 96% of the cases. Dr. Desch concluded that the easy-to-use DyeVert System minimizes contrast dye usage while maintaining image quality.

A separate TCT luncheon symposia dedicated to the topic of contrast-induced AKI was also held during TCT. Osprey’s technology was favorably highlighted during the presentations and as part of the expert faculty panel discussion.

STEFFEN DESCH, PD DR. MED. University Medical Center Schleswig-HolsteinLübeck, Germany

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FORWARD LOOKING STATEMENTS

This document contains certain forward-looking statements, relating to Osprey Medical’s business, which can be identified by the use of forward-looking terminology such as “promising,” “plans,” “anticipated,” “will,” “project,” “believe,”“forecast,” “expected,” “estimated,” “targeting,” “aiming,” “set to,” “potential,” “seeking to,” “goal,” “could provide,” “intends,” “is being developed,” “could be,” “on track,” or similar expressions, or by express or implied discussions regarding potential filings or marketing approvals, or potential future sales of product candidates. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no assurance that any existing or future regulatory filings will satisfy the FDA’s and other health authorities’ requirements regarding any one or more product candidates nor can there be any assurance that such product candidates will be approved by any health authorities for sale in any market or that they will reach any particular level of sales. In particular, management’s expectations regarding the approval and commercialization of the product candidates could be affected by, among other things, unexpected clinical trial results, including additional analysis of existing clinical data, and new clinical data; unexpected regulatory actions or delays, or government regulation generally; our ability to obtain or maintain patent or other proprietary intellectual property.

AVERT™ and DyeVert™ Systems Regulatory Status: • Europe – CE Mark obtained • Australia – TGA approval obtained • United States – 510(k) cleared

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Osprey Medical Inc.5600 Rowland Road

Suite 250Minnetonka, MN 55343

Phone: 952.955.8230www.ospreymed.com

Australia Media RelationsRebecca Wilson

Buchan ConsultingPhone: 613.9866.4722

rwilson@buchanwe.com.au

Osprey, AVERT and DyeVert™ are trademarks of Osprey Medical, Inc.©Osprey Medical, Inc. 2015. All Rights Reserved

U.S. Securities StatementThe shares of Osprey Medical have not been registered under the Securities Act of 1933 (the “U.S. Securities Act”) and may not be offered, sold or delivered in the United States, or to, or for the account or benefit of, any U.S. Person, as such term is defined in Regulation S of the U.S. Securities Act.

Why Dye Volume Matters?

“ Our procedures are becoming much more complex; thus a

need for more contrast volume. We really need a better way

to plan, dye volume matters tremendously! Contrast volume

is not something that you want to give to a patient if they

don’t need it.”

“ The volume of dye is strongly associated both with morbidity,

as well as mortality and what we can do to help control the

dye volume is important. We should be using the lowest

possible volume.”

ROXANA MEHRAN, MDMount Sinai HospitalNew York, NY

PATRICIA BEST, MDMayo ClinicRochester, MN

I n October, the Transcatheter Cardiovascular Therapeutics (TCT) meeting was held in San Francisco, California. The TCT is the world’s largest educational meeting

specializing in interventional cardiovascular medicine. At this meeting, Osprey interviewed four key opinion leading physicians about the value of dye savings to their patients. To see these interviews, please refer to: http://www.ospreymed.com/dye-volume.php

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