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AirXpanders Announces Restructuring to Align Resources and Reduce Use of Cash

02 / 05 / 2019

San Jose, CA, United States - AirXpanders, Inc. (ASX: AXP), or the Company, a medical device company focused on the design, manufacture, sale and distribution of the AeroForm® Tissue Expander System, today announced that the Company has initiated an organizational restructuring, to better align and focus the Company, while making best use of its resources. The Company expects the restructuring to include an organizational resizing, representing a reduction of approximately 45% of the Company's workforce, resulting in an expected reduction in quarterly use of cash of approximately 33% on an ongoing basis. The Company anticipates it will incur aggregate one-time restructuring charges of approximately US$0.2 million in the second quarter of 2019. This restructuring is intended to reduce use of cash, while ensuring continued progress in driving adoption of the AeroForm Tissue Expander System. AirXpanders expects to continue selling the AeroForm Tissue Expander through the company's direct sales force in the United States. AirXpanders operations in Australia will remain unchanged at this time.

The Company is actively pursuing capital raising opportunities, and recently filed a preliminary S-1 outlining the potential terms of an offering with the SEC. The Company plans to provide more details related to its business and strategy as plans are finalized.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of our securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About AirXpanders:
Founded in 2005, AirXpanders, Inc. ( designs, manufactures and markets innovative medical devices to improve breast reconstruction. The Company's AeroForm Tissue Expander System, is used in patients undergoing two- stage breast reconstruction following mastectomy. Headquartered in San Jose, California, AirXpanders' vision is to be the global leader in reconstructive surgery products and to become the standard of care in two-stage breast reconstruction. AirXpanders is a publicly listed Company on the Australian Securities Exchange under the symbol "AXP." AeroForm was granted U.S. FDA de novo marketing authorization in 2016, subsequent U.S. market clearance in 2017, first CE mark in Europe in 2012 and is currently licensed for sale in Australia.

Forward-Looking Statements
This announcement contains or may contain forward-looking statements that are based on management's beliefs, assumptions and expectations and on information currently available to management.

All statements that address operating performance, events or developments that we expect or anticipate will occur in the future, including those related to the timing of implementation and completion of actions related to the Company's reduction in workforce and the expected restructuring charges, anticipated cash savings, cash forecast, anticipated continued adoption of AeroForm, and potential financing are forward-looking statements. These include, without limitation, benefits of the organizational restructuring, including the Company's ability to reduce its use of cash, ability to continue driving adoption of AeroForm, its ability to successfully sell through a direct sales force, risks and uncertainties related to market conditions, and additional business risks included in the Company's periodic reports filed with the SEC.

Management believes that these forward-looking statements are reasonable when made. You should not place undue reliance on forward-looking statements because they speak only as of the date when made. AirXpanders may not actually achieve the plans, projections or expectations disclosed in forward-looking statements. Actual results, developments or events could differ materially from those disclosed in the forward-looking statements. For additional information and considerations regarding the risks faced by AirXpanders that could cause actual results to differ materially, see its most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on February 28, 2019 (AUS time). AirXpanders disclaims any obligation to update information contained in any forward-looking statement, except as required by law.

For more information, refer to the Company's website at

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Frank Grillo
President & CEO
Tel: +1 (650)-390-9000

Scott Murcray
Tel: +1 (650)-390-9000