On February 22, 2013, SafeStitch Medical, Inc. entered into a promissory note in the principal amount of $200,000.00 with Jane Hsiao, SafeStitch's Chairman of the Board (the Hsiao Note). The interest rate payable by SafeStitch on the Hsiao Note is 10% per annum, payable on the maturity date of June 30, 2013. (the Maturity Date). The Hsiao Note may be prepaid in advance of the Maturity Date without penalty.

SafeStitch Medical, Inc. reported positive findings in a seven patient preliminary pilot clinical trial using its proprietary transluminal devices to restrict gastric acid reflux in three patients and to cause meaningful weight reduction in two obese patients after two years. It's encouraging to see the objective findings of esophageal pH normalization in the three patients with gasatroesophageal reflex disease and weight loss of 30-60% in the two obese subjects two years after the procedure. This provides the level of confidence that transluminal devices and procedure will have durability, which is essential for the success of the procedure. SafeStitch plans to expand the pilot study to include additional subjects and to submit an Investigational Device Exemption (IDE) with FDA in 2013.

SafeStitch Medical, Inc. announced it has shipped the AMID(TM) Hernia Fixation Device (AMID HFD(TM)) to over half a dozen medical facilities nationwide, just four months after its launch on April 17, 2012. These facilities include Santa Monica UCLA General Surgery, North Carolina Medical Center, Ohio Hernia Center, New York-Presbyterian and Hernia Center of Southern California. In addition, more than 90 physicians have already operated with the AMID HFD and more than a dozen facilities are in the process of obtaining committee approval to make the AMID HFD available for physicians to purchase. The AMID Hernia Fixation Device is used for both inguinal and ventral hernia surgeries. For inguinal hernia repair using the Lichtenstein method, the innovative design of the AMID HFD fixates mesh by delivering staples in a parallel plane to the femoral vessels, which may help avoid vascular injury. The AMID HFD allows for mesh manipulation, mesh fixation and skin closure.