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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 19, 2009

ENDOLOGIX, INC.
(Exact name of registrant as specified in its charter)

Delaware 000-28440 68-0328265

(State or other jurisdiction of (Commission File Number) (IRS Employer Identification
incorporation) No.)

11 Studebaker, Irvine, CA 92618

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (949) 595-7200

Check the appropriate box below if the Form 8-K filing is intended to be simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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TABLE OF CONTENTS

Item 2.02 Results of Operations and Financial Condition.

Item 9.01 Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1
EXHIBIT 99.2
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Item 2.02 Results of Operations and Financial Condition.

On February 19, 2009, Endologix, Inc. issued a press release to report its financial results for the three and twelve months ended
December 31, 2008. The press release is furnished as Exhibit 99.1 and is incorporated herein by reference.
On February 19, 2009, Endologix, Inc. held a conference call with analysts and investors, the transcript of which is furnished as Exhibit 99.2
and is incorporated herein by reference.
The information in this Current Report on Form 8-K, including Exhibit 99.1 and 99.2, is furnished pursuant to Item 2.02 and shall not be
deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that
section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be
expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number Description

99.1 Press Release dated February 19, 2009.

99.2 Transcript of Conference Call held on February 19, 2009.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

ENDOLOGIX, INC.

February 23, 2009 /s/ Robert J. Krist

Robert J. Krist
Chief Financial Officer
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EXHIBIT INDEX

Exhibit
Number Description
99.1 Press Release dated February 19, 2009.

99.2 Transcript of Conference Call held on February 19, 2009.

Exhibit 99.1

(ENDOLOGIX LOGO)

COMPANY CONTACT: INVESTOR CONTACTS:

Endologix, Inc. Lippert/Heilshorn & Associates, Inc.
John McDermott, CEO Bruce Voss (bvoss@lhai.com)
(949) 595-7200 Jody Cain (jcain@lhai.com)
www.endologix.com (310) 691-7100

ENDOLOGIX REPORTS 36% REVENUE GROWTH IN 2008

Record Fourth Quarter and 16th Consecutive Quarter of Domestic Sales Growth
Conference Call Begins at 5:00 p.m. Eastern Time Today
IRVINE, Calif. (February 19, 2009) — Endologix, Inc. (Nasdaq: ELGX), developer and manufacturer of the Powerlink® endovascular stent
graft for the minimally invasive treatment of abdominal aortic aneurysms (AAA), today announced financial results for the three months and
12 months ended December 31, 2008.
“We had a strong finish to 2008, reporting record revenue for the fourth quarter. Domestic product revenue grew 35% compared with the 2007
fourth quarter and reflected initial sales from our suprarenal proximal extensions and Powerlink XL® introduced late last year. Feedback
regarding these new products has been very positive,” said John McDermott, Endologix President and Chief Executive Officer. “We exceeded
our fourth quarter revenue guidance, while significantly improving gross margins and reducing our cash burn.
“2009 is a pivotal year for Endologix in which we expect to build on our momentum and continue taking market share,” he added. “We are
affirming our financial guidance for year-over-year revenue growth of 17% to 22%, or $44 million to $46 million, driven by new products and
our sales force initiatives. We expect that our continued growth, strong gross margins and expense controls will enable us to achieve positive
cash flow from operations in this year’s second quarter.”

Financial Results
Endologix reported record product revenue for the fourth quarter of 2008 of $10.7 million, up 35% from $7.9 million in the fourth quarter of 2007,
and up 14% from $9.4 million in the third quarter of 2008. Domestic product revenue was $9.1 million, compared with $6.7 million in the fourth
quarter of 2007, and $8.1 million in the third quarter of 2008. International product revenue of $1.6 million for the fourth quarter of 2008
compares with $1.2 million during the comparable quarter in 2007 and $1.3 million in the third quarter of 2008. For the 12 months ended
December 31, 2008, product revenue was $37.6 million, a 39% increase from product revenue of $27.0 million for the 12 months ended
December 31, 2007. For the 2008 full year, domestic product revenue increased 39% to $31.9 million from $23.0 million for the 2007 full year, and
international revenue increased 44% to $5.7 million from $4.0 million for 2007. Including a decline in license revenue, total revenue increased
36% to $37.7 million in 2008 from $27.8 million in 2007.

11 Studebaker • Irvine, CA 92618

949.595.7200 • Fax: 949.457.9561
www.endologix.com
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Gross profit of $7.8 million was 73% of total revenue in the fourth quarter of 2008. This compares with $5.1 million and 64%, respectively, in the
fourth quarter of 2007, and $6.9 million and 74%, respectively, in the third quarter of 2008. Gross profit of $27.3 million was 72% of total revenue
for the 12 months ended December 31, 2008. This compares with $17.2 million and 62%, respectively, for the 12 months of 2007. Endologix
expects moderate gross margin improvement in 2009 due to efficiencies from higher manufacturing volumes required to support sales growth.
Total operating expenses were $9.3 million in the fourth quarter of 2008, compared with $8.9 million in the fourth quarter of 2007. Marketing and
sales expenses increased to $5.8 million in the fourth quarter of 2008 from $5.5 million in the comparable quarter last year due to commission
expense on the increased revenue and costs related to the launch of Powerlink XL. General and administrative expenses increased to
$2.2 million from $1.7 million in the fourth quarter of 2007, due to costs related to the settlement of a legal dispute with Cook Medical Products,
Inc. and Endologix’s analysis and response to the unsolicited acquisition proposal from Elliott Associates. Total operating expenses for 2008
were $39.3 million, versus $33.4 million in 2007. The increase in operating expenses was due primarily to higher sales and marketing costs, the
settlement of two legal disputes, and costs related to the CEO transition.
Endologix reported a net loss in the fourth quarter of 2008 of $1.6 million, or $0.04 per share, which compares with a net loss of $3.5 million, or
$0.08 per share, for the fourth quarter of 2007. Endologix reported a net loss for the 12 months ended December 31, 2008 of $12.0 million, or
$0.28 per share, compared with a net loss of $15.1 million, or $0.35 per share, for the 12 months ended December 31, 2007.
Total cash and cash equivalents as of December 31, 2008 was $8.1 million. This compares with total cash and cash equivalents as of
December 31, 2007 of $9.2 million, and $9.0 million at September 30, 2008. Net cash used was $6.1 million for the 2008 full year and $902,000 in
the fourth quarter of 2008.
“In reviewing 2008 fourth quarter earnings before interest, taxes, depreciation and amortization, together with non-cash stock-based
compensation expenses, we came very close to reaching breakeven on that basis. We believe these results demonstrate our ability to achieve
positive cash flow from operations in upcoming quarters,” stated Endologix Chief Financial Officer Bob Krist.
Mr. McDermott continued, “We are currently conducting a limited market release of our new IntuiTrak™ Delivery System and receiving very
positive physician feedback. The new device simplifies delivery and deployment of the Powerlink stent graft and features a low-profile catheter
with enhanced flexibility, advanced hemostasis control and a hydrophilic coating to facilitate smooth delivery. Additionally, the device has an
integrated sheath which was designed to reduce procedure time, blood loss and vessel trauma.
“In addition to the full launch of IntuiTrak in the second quarter of 2009, we expect continued sales growth from our suprarenal proximal
extensions and Powerlink XL, both of which were launched in November 2008. These new devices together with our sales force initiatives
provide a solid foundation for long-term growth,” he concluded.

Conference Call Information

Endologix management will host a conference call to discuss these topics today beginning at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). To
participate via telephone please call (888) 463-4487

11 Studebaker • Irvine, CA 92618

949.595.7200 • Fax: 949.457.9561
www.endologix.com
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from the U.S. or (706) 634-5615 from outside the U.S. A telephone replay will be available for two days following the completion of the call by
dialing (800) 642-1687 from the U.S. or (706) 645-9291 from outside the U.S., and entering reservation number 83078806. The conference call will
be broadcast live over the Internet at www.endologix.com and will be available for 14 days.

About Endologix
Endologix, Inc. develops and manufactures innovative therapies for aortic disorders. Endologix’s Powerlink System is an endovascular stent
graft for treating abdominal aortic aneurysms (AAA). AAA is a weakening of the wall of the aorta, the largest artery in the body, resulting in a
balloon-like enlargement. Once AAA develops, it continues to enlarge and, if left untreated, becomes increasingly susceptible to rupture. The
overall patient mortality rate for ruptured AAA is approximately 75%, making it a leading cause of death in the U.S. Additional information can
be found on Endologix’s Web site at www.endologix.com.
Except for historical information contained herein, this news release contains forward-looking statements, specifically with respect to new
product introductions and 2009 financial guidance for revenue, gross margins, and cash flow, the accuracy of which are necessarily
subject to risks and uncertainties, all of which are difficult or impossible to predict accurately and many of which are beyond the control of
Endologix. Many factors may cause actual results to differ materially from anticipated results, including the success of sales efforts for the
Powerlink System and related new products, product research and development efforts, and other economic, business, competitive and
regulatory factors. The Company undertakes no obligation to update its forward looking statements. Please refer to the Company’s Annual
Report on Form 10-K for the year ended December 31, 2007, and the Company’s other filings with the Securities and Exchange
Commission, for more detailed information regarding these risks and other factors that may cause actual results to differ materially from
those expressed or implied.

[Tables to follow]

11 Studebaker • Irvine, CA 92618

949.595.7200 • Fax: 949.457.9561
www.endologix.com
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ENDOLOGIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)

Th re e Mon ths En de d Twe lve Mon ths En de d

De ce m be r 31, De ce m be r 31,
2008 2007 2008 2007
Revenue:
Domestic Product Revenue $ 9,128 $ 6,742 $ 31,936 $ 23,049

Non-US Product Revenue 1,551 1,175 5,695 3,968

Total Product Revenue 10,679 7,917 37,631 27,017
License Revenue — 76 33 754
Total revenue 10,679 7,993 37,664 27,771
Cost of product revenue 2,835 2,890 10,380 10,539
Gross profit 7,844 5,103 27,284 17,232
Operating expenses:
Research, development and clinical 1,352 1,707 6,060 6,372
Marketing and sales 5,777 5,476 23,794 20,142

General and administrative 2,207 1,678 9,477 6,380

Termination of supply agreement — — — 550
Total operating expenses 9,336 8,861 39,331 33,444
Loss from operations (1,492) (3,758) (12,047) (16,212)
Other income (loss):
Interest income (expense) (37) 106 22 664
Other income (expense) (47) 124 33 473
Total other income (expense) (84) 230 55 1,137

Net loss ($1,576) ($3,528) ($11,992) ($15,075)

Basic and diluted net loss per share ($0.04) ($0.08) ($0.28) ($0.35)

Shares used in computing basic and diluted net loss per share 43,127 42,881 43,045 42,796

11 Studebaker • Irvine, CA 92618

949.595.7200 • Fax: 949.457.9561
www.endologix.com
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ENDOLOGIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except per share amounts)

De ce m be r 31, De ce m be r 31,
2008 2007
ASSETS
Current assets:
Cash and cash equivalents $ 7,611 $ 8,728
Restricted cash equivalents 500 500
Marketable securities available-for-sale — —
Accounts receivable, net 6,371 4,527
Other receivables 3 234
Inventories 7,099 8,054
Other current assets 443 581
Total current assets 22,027 22,624
Property and equipment, net 2,993 3,771
Marketable securities available-for-sale — —
Goodwill 4,631 4,631
Intangibles, net 7,508 8,913
Other assets 104 104
Total Assets $ 37,263 $ 40,043
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 5,401 $ 4,259
Current portion of long term debt 750 —
Current liabilities 6,151 4,259
Long term liabilities:
Long term debt $ 4,250 $ —
Other long term liabilities 1,045 1,109
Long term liabilities 5,295 1,109
Total liabilities 11,446 5,368
Stockholders’ equity:
Convertible preferred stock, $.001 par value; 5,000 shares authorized, no shares issued and
outstanding
Common stock, $.001 par value; 60,000 shares authorized, 44,365 and 43,453 shares issued, and
43,870 and 42,958 outstanding 44 43
Additional paid-in capital 170,239 166,912
Accumulated deficit (143,730) (131,738)

Treasury stock, at cost, 495 shares (661) (661)

Accumulated other comprehensive income (75) 119
Total stockholders’ equity 25,817 34,675

Total Liabilities and Stockholders’ Equity $ 37,263 $ 40,043

11 Studebaker • Irvine, CA 92618

949.595.7200 • Fax: 949.457.9561
www.endologix.com
###

Exhibit 99.2

LIPPERT HEILSHORN & ASSOCIATES

Moderator: Jody Cain
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02-19-09/4:00 pm CT
Confirmation #83078806
Page 1

LIPPERT HEILSHORN & ASSOCIATES

Moderator: Jody Cain
February 19, 2009
4:00 pm CT

Operator: Welcome to the Endologix Fourth-Quarter conference call. At this time, all participants are in a listen-only mode.
Following management’s prepared remarks, we’ll hold a Q&A session. To ask a question, please press star followed
by 1 on your touchtone phone. If anyone has difficulty hearing the conference, please press star-0 for operator
assistance. As a reminder, this conference is being recorded February 19, 2009.

I would now like to turn the conference over to Jody Cain. Please go ahead, ma’am.

Jody Cain: This is Jody Cain with Lippert Heilshorn & Associates. Thank you for participating in today’s call.

Joining me from Endologix are John McDermott, President and Chief Executive Officer, and Bob Krist, Chief Financial
Officer.

Earlier this afternoon, Endologix issued a press release announcing financial results for the fourth quarter and full
year of 2008. If you have not received this news release or if you’d like to be added to the company’s distribution
list, please call Lippert Heilshorn in Los Angeles at 310-691-7100 and speak with Amy Higgins.
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LIPPERT HEILSHORN & ASSOCIATES

Moderator: Jody Cain
02-19-09/4:00 pm CT
Confirmation #83078806
Page 2

This call is also being broadcast live over the Internet at www.endologix.com and a replay of the call will be available
on the company’s web site for the next 14 days.

Before we begin, I’d like to caution listeners that comments made by management during this conference call will
include forward-looking statements within the meaning of federal securities laws.

These forward-looking statements involve material risks and uncertainties. For a discussion of risk factors, I
encourage you to review the Endologix annual report on Form 10-K and subsequent reports as filed with the
Securities and Exchange Commission.

Furthermore, the content of this conference call contains time-sensitive information that is accurate only as of the
date of the live broadcast, February 19, 2009.

Endologix undertakes no obligation to revise or update any statements to reflect events or circumstances after the
date of this call.

With that said, I’d like to turn the call over to John McDermott. John?

John McDermott: Thank you, Jody, and I’d like to welcome everyone for joining us on the call today.
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LIPPERT HEILSHORN & ASSOCIATES

Moderator: Jody Cain
02-19-09/4:00 pm CT
Confirmation #83078806
Page 3

We’re excited about our prospects for the current year, but before discussing our plans and expectations for 2009,
I’d like to briefly review our financial performance in 2008.

For the fourth quarter, we are reporting a 35% increase in both global product revenue and domestic product
revenue and our 16th consecutive quarter of domestic sales growth. Based upon our fourth-quarter run rate, we
estimate our domestic market share at about 8%.

We are pleased to announce that we achieved our 2008 financial guidance. Total 2008 product revenues reached
$37.6 million, a 39% increase compared with 2007. We also increased our gross margin by 10%.

The combination of revenue growth, margin improvement, and expense controls have brought us significantly closer
to our goal of sustainable, positive cash flow from operations, which we expect to achieve in the second quarter of
2009. As we look to 2009, we plan to continue our growth through new product introductions and the increased
effectiveness of our U.S. sales force.

In terms of new products, we are encouraged by the initial reception to our Powerlink XL system, which was
commercially introduced last November. This new device enables the treatment of aortic aneurysms with necks to 32
millimeters, opening to Endologix an additional 15% of the U.S. EVAR market worth an estimated $70 million.
Powerlink XL has the lowest profile delivery system of any AAA device in the U.S. to treat aneurysms with necks
greater than 26 millimeters.
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LIPPERT HEILSHORN & ASSOCIATES

Moderator: Jody Cain
02-19-09/4:00 pm CT
Confirmation #83078806
Page 4

In November of last year, we also introduced our suprarenal proximal extensions which now position us to be the
only AAA device company to offer physicians the choice of either infrarenal or suprarenal configurations.

We’re also enthusiastic about our new IntuiTrak Delivery System. IntuiTrak incorporates a novel design and
deployment mechanism that simplifies delivery of the Powerlink device and provides exceptional accuracy and
control.

IntuiTrak is a low-profile system that features enhanced flexibility, advanced hemostasis control and a hydrophilic
coating to facilitate smooth delivery. Additionally, the delivery catheter has an integrated sheath that minimizes the
need to exchange introducers, thereby having the potential to minimize vessel trauma and reduce overall procedure
time. We were granted U.S. marketing approval for IntuiTrak last October. Since that time, we have been conducting
a limited-market release to gain more experience with the new system while we build our training programs and
inventory. To date, more than 80 cases have been performed with IntuiTrak and the physician feedback has been
very positive. Last week, IntuiTrak was featured in two live-case demonstrations performed at the Arizona Heart
Institute during the International Congress of Endovascular Interventions meeting in Phoenix. Both procedures went
extremely well and generated a lot of interest from the attending physicians.

Turning to the sales force, we implemented several new initiatives in the second half of last year, which we believe
are starting to drive productivity and sales increases. First, we implemented a more growth-oriented commission plan
last July that rewards increases in sales over prior periods. We also revamped our sales-training program to provide
newer reps with more knowledge and tools to better serve physicians.
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LIPPERT HEILSHORN & ASSOCIATES

Moderator: Jody Cain
02-19-09/4:00 pm CT
Confirmation #83078806
Page 5

The new program is much more comprehensive and includes two different physician sign-offs to ensure that our
reps can provide a high level of service and support. We also reconfigured our territory alignments to make sure we
have optimal coverage of the AAA procedures across the country. Although it’s difficult to pinpoint which one of
these initiatives is having the biggest impact, we know that these programs, together with our new products,
position us well for sustainable long-term growth and market-share gains.

With those comments, I’d like to turn the call over to Bob Krist to review our financial performance. Bob?

Bob Krist: Thanks, John and good afternoon to all.

Powerlink System products revenue for the fourth quarter was $10.7 million, which, as John mentioned, represents a
35% increase from $7.9 million in the fourth quarter of 2007, and a 14% sequential increase over the third quarter of
2008.

Domestic product sales increased to $9.1 million from $6.7 million in the 2007 fourth quarter and 13% sequentially
from $8.1 million in the 2008 third quarter.

There were 46 covered sales territories in the fourth quarter of 2008 compared with 48 in the prior-year quarter.
Consequently, the 35% year-over-year domestic sales increase was entirely driven by the increase in average sales
per territory, including the impact of Powerlink XL. We estimate that Powerlink XL contributed about $700,000 of
incremental revenue in the quarter.
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LIPPERT HEILSHORN & ASSOCIATES

Moderator: Jody Cain
02-19-09/4:00 pm CT
Confirmation #83078806
Page 6

International sales for the quarter were $1.6 million, up 32% from $1.2 million in the prior-year fourth quarter and up
20% sequentially from $1.3 million in the third quarter of 2008. That was driven by growth in every major international
market we serve.

Gross profit increased by 54% to $7.8 million, compared with $5.1 million in the fourth quarter of 2007. This was
driven by the strong sales growth and by a 10% gross-margin improvement.

Gross margin was 73% of total revenue in the fourth quarter, up from 63% in the prior-year fourth quarter and down
slightly from 74% for the third quarter of this year.

We have now realized the great majority of the impact expected from producing ePTFE graft material in-house.
However, we do anticipate modest, additional margin improvement in 2009 as the full PTFE benefit is realized, and
from lower product cost per unit as the volume of production increases.

Sales and marketing expense of $5.8 million increased by 5% versus the prior-year quarter due to the impact of higher
sales commissions on the 35% domestic sales increase offset by reductions in sales management expenses.

Research, development and clinical expense for the fourth quarter of 2008 was $1.4 million versus $1.7 million last
year. The decrease was primarily due to lower development-materials expense for new products nearing commercial
introduction and associated lower clinical-trial expenses.

General and administrative expense was $2.2 million versus $1.7 million in the 2007 fourth quarter due to costs related
to the settlement of a legal dispute with Cook Medical Products, as well as our analysis and response to the
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LIPPERT HEILSHORN & ASSOCIATES

Moderator: Jody Cain
02-19-09/4:00 pm CT
Confirmation #83078806
Page 7

unsolicited acquisition proposal from Elliott Associates. Together these two matters totaled about $345,000 in the
quarter. Inclusive of those charges, total operating expenses were $9.3 million in the fourth quarter, which was a 5%
increase compared with $8.9 million in the prior-year quarter.

Stock-option expense in the 2008 fourth quarter was $713,000 or 2 cents per share, compared with $596,000 or 1 cent
per share in the 2007 fourth quarter.

The line-item breakdown for the Q4 2008 charge was $47,000 charged to cost of sales; $71,000 charged to R&D;
$222,000 charged to sales and marketing and $373,000 charged to G&A.

Overall the net loss in the fourth quarter was $1.6 million or 4 cents per share, which compared with a net loss of
$3.5 million or 8 cents per share for the fourth quarter of 2007.

As John also stated, our full-year 2008 total product revenue was $37.6 million, up 39% from $27 million for the full
year 2007.

Domestic revenue also grew by 39% to $31.9 million and international revenue increased by 44% to $5.7 million.

Of note, for the first time, in 2008 our sales included shipments to our distributor in Japan, which totaled $1.4 million
for the full year.

The 39% year-over-year domestic sales increase was driven by a 14% increase in the number of covered sales
territories and a 22% increase in average sales per territory.
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LIPPERT HEILSHORN & ASSOCIATES

Moderator: Jody Cain
02-19-09/4:00 pm CT
Confirmation #83078806
Page 8

Gross profit for the full year 2008 increased by 58% to $27.3 million compared with $17.2 million for the full year 2007.
The improvement in 2008 was driven by the 39% product-sales increase and by more than 10% of margin
improvement.

Gross margin was 72% for the full year of 2008 compared with 62% for the full year of 2007. Of particular note, the
$10.1-million increase in gross profit in 2008 actually exceeded the $9.9-million increase in total revenue.

Marketing and sales expense increased 18% to $23.8 million for the full year 2008 from $20.1 million for the full year
2007. This increase was due to the number of covered sales territories increasing by 14% from 43 on average in 2007
to 49 on average in 2008 and the impact of higher sales commissions on the 39% domestic sales increase.

We expect increases in sales and marketing expense in the first half of 2009 related to our participation at trade
events, our national sales meeting to be held in March, and the second-quarter launch of IntuiTrak.

Research, development and clinical expense was $6.1 million for the full year 2008 compared to $6.4 million for the full
year 2007. We plan to increase spending in R&D in 2009 in order to initiate development programs, which expand the
market for aneurysm repair, and to develop products to treat other aortic disorders.

General and administrative expense was $9.5 million for the full year 2008 versus $6.4 million for the full year 2007.
The increases were largely due to approximately $1.5 million in legal fees related to two matters which are now fully
resolved, about $700,000 related to the management transition, and costs associated with our analysis in response to
the unsolicited acquisition
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LIPPERT HEILSHORN & ASSOCIATES

Moderator: Jody Cain
02-19-09/4:00 pm CT
Confirmation #83078806
Page 9

proposal. Given the nature of these increases, we would expect G&A expense to decline meaningfully on an
absolute-dollar basis for all of 2009 relative to 2008.

Total operating expense for the full year of 2008 of $39.3 million was in-line with our 2008 financial guidance and
represented an 18% increase over $33.4 million for 2007.

Excluding the expenses discussed earlier, which are not truly related to company growth, the year-over-year increase
was more like 10% relative to a 39% increase in sales. That is a more realistic indicator of the scalability and the
operating leverage in our business model.

The net loss for the year ended December 31, 2008, narrowed to $12 million or 28 cents per share from a net loss of
$15.1 million or 35 cents per share for 2007. Stock-option expense for 2008 was $2.9 million or 7 cents per share versus
$2.4 million or 6 cents per share for 2007.

During the fourth quarter, we continued to control working capital. Accounts receivable day sales outstanding
averaged 53 days, including both domestic and international accounts, and remained at 53 days at year-end.
Inventory turnover remained at 1.8 turns at the end of the year compared with a year ago. However, the 2008 period
included a build-up of IntuiTrak inventory in anticipation of the upcoming product launch in the second quarter.

Cash and marketable securities as of December 2008 were $8.1 million compared with $9.2 million as of December 2007
and $9.0 million as of September 2008.
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LIPPERT HEILSHORN & ASSOCIATES

Moderator: Jody Cain
02-19-09/4:00 pm CT
Confirmation #83078806
Page 10

Cash and marketable securities reflect our draw of $2 million from our $5-million revolving credit facility plus
$3 million from our term-debt facility on this past September 30.

Cash burn during the fourth quarter was $900,000, which included a $1-million increase in accounts receivable.

Fourth-quarter earnings before interest, taxes depreciation and amortization — generally referred to as EBITDA —
together with non-cash, stock-based compensation expenses in the quarter were within $200,000 of breakeven. That
included the $345,000 of expenses for the Cook Medical and the Elliott Associates matters mentioned earlier.

Based on these results, we’re already generating enough cash to cover operating expenses and now our cash is
being used to support working capital related to sales growth.

While the first quarter will reflect additional burn due to the payment of annual bonuses, the annual financial audit
and our national sales meeting, we believe this is a good indication of our ability to reach cash-flow positive from
operations in the second quarter of 2009.

With that, I’ll turn the call back to John.

John McDermott: Thanks, Bob.

2008 was a very good year for Endologix and we’re even more enthusiastic about 2009. We started selling Powerlink
XL and our suprarenal extensions in November of last year, so we’ve got a full year of sales with those devices in
2009.
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We’re also on schedule for the launch of IntuiTrak in the second quarter and we’re encouraged by the early
physician feedback about this new device. Our initial focus for IntuiTrak will be in the U.S., but we’ll start to roll it
out in international markets before the end of the year.

Longer term, we’re working on several new devices to expand the market for aneurysm repair and treat other aortic
disorders. We’ll provide more details about these programs later in the year.

To reiterate our 2009 guidance, we expect global revenue of $44 million to $46 million, which is a 17% to 22% increase
from 2008. This growth represents less than one incremental case per month per rep in the U.S., and assumes
continued growth from our international distributors.

Secondly, we will begin generating positive cash flow from operations in the second quarter of 2009.

With that overview, I’d like to open the call for questions.

Operator?

Operator: Ladies and gentlemen, if you wish to register for a question for today’s question and answer session, you will need
to press star then the number 1 on your telephone. You will hear a prompt to acknowledge your request.

If your question has been answered and you wish to withdraw your polling request, you may do so by pressing the
star then the number 2. If you are using a speakerphone, please pick up your handset before entering the request.
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Again, we request if you have pressed star-1 to ask a question before this time, please press it once again to ensure
you enter into the queue.

One moment, please, for the first question.

John McDermott: While we’re waiting for the first question, I’d like to announce that we will be presenting at the Lazard Capital
Markets Medical Device Conference being held March 25 and March 26 in Snowbird, Utah. A webcast of this
presentation will be available on our Web site at www.endologix.com .

Operator, we’re ready for the first question.

Operator: Your first question comes from the line of Shawn Fitz with Stephens Incorporated. You may proceed with your
question.

Drew Jones: Hey, John and Bob. This is actually Drew for Shawn. We had a quick question for you on guidance. What
assumptions are you guys making as far as contributions from new products? And if you could specifically break
that out as far as assumptions for Powerlink XL and the suprarenal cuffs, that would be even more helpful.

John McDermott: You know, we haven’t yet provided that level of detail in the guidance as it relates to new products. It’s a little too
early in the year to start to drill down at that level.

Drew Jones: Okay, okay. But so Powerlink, you guys obviously had a really good fourth quarter with that. So we could kind of
conservatively assume we’d see a little bit of growth off that through the year?

John McDermott: Yeah, we expect growth from Powerlink XL, sure.

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Drew Jones: Okay. And then, just as far as sales rep adds, it looks like productivity is improving there. Is that going to be the
lever that you’re really going to rely on through the year? Or do you think towards the end of the year once you get
everything more in line with where you think it needs to be with regards to the sales force, then you’ll feel
comfortable maybe making a few adds there?

John McDermott: Yeah, we’re actually going to make a small number of additions in the — in 2009, but you’re exactly correct. We’re
still seeing good productivity gains and we feel like we still have a lot more opportunity to drive incremental cases
from the current sales forces. But we’ll add a couple of territories and then be in a position to look at making
additional adds in the future.

Drew Jones: Okay. Well, thank you, guys. We appreciate it.

John McDermott: Good. Thank you.

Operator: Once again, ladies and gentlemen, as a reminder, to register for a question, please press star then the number 1 on
your telephone.

Your next question comes from the line of Bob Poole with Bricoleur Capital. Please proceed with your question.

Bob Poole: Hi John and Bob.

Man: (Unintelligible).

Bob Poole: Congratulations on the good quarter.

Man: Hey, Bob, thank you.

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Man: Thank you.

Bob Poole: (Unintelligible) this is, I don’t know, it seems like the first time in quite a while that you clearly outperformed on both
the top and bottom line, so congratulations on that. Could you — I’d like to go back, and you may not be surprised
to hear, to the Elliott bid. And in your response to that, which we haven’t had a chance to talk to you in this kind of
forum since then, but in your response to that, you kind of gave just a pretty much a ‘no thanks’. Could you expand
a little bit on the reasons why you believed, you know, the $2.25 bid that they gave for the company was
inadequate?

John McDermott: I can’t really expand much more than was already has been included in the press release, Bob. I think we’ve provided
pretty clear feedback on the board’s perspective in response to the proposal at that time.

I don’t have that in front of me, but — and as you know, it’s — you know, beyond what’s already been published,
it’s just not our policy to comment on M&A activities.

Bob Poole: Okay. And that policy is based on — how does that policy — how you believe that policy sort of serves
shareholders who, you know, had to, you know, who are sitting here today at $1.70 or $1.69 when they could have
$2.25 in pocket? How do you believe the policy of not communicating your reasons for that serves the shareholders
for whom the board works?

John McDermott: Well, again, I think if you go back to the press release that we issued, with the response we provided, I believe, an
appropriate level of detail as to the rationale for not proceeding with the Elliott proposal. So I don’t think the issue
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has been no feedback to shareholders. I think we provided pretty clear direction as to the board’s position as it
relates to that proposal at that time.

Bob Poole: Okay. I mean, all you really said was the proposed valuation does not reflect what you guys basically think is the
value of the company. But I haven’t heard an affirmative case for what does represent how you guys do look at that.
I mean, clearly the market has come to a different conclusion here over a number of months. You know, what do you
point to as an indicator that the company is worth more than what they’ve bid?

John McDermott: Well, Bob, I mean we just put up a great quarter. We’re building momentum. We’ve got a lot of good things going
on. We haven’t even introduced IntuiTrak. Our perspective is that there’s opportunity to enhance our value as we
get deeper into these new products and leverage more effectiveness out of our sales force.

Operator: Once again, ladies and gentlemen, if you’d like to ask a question, please press star then the number 1 on your
telephone keypad. And it appears there are no further questions in the queue. Please proceed with your presentation
or any closing remarks.

John McDermott: Well, once again, I’d like to thank everyone for joining us today, for your questions, and for your support. We’re
committed to building Endologix into a leading innovator in the treatment of aortic disorders. If you have any
additional questions, please call either Bob or me. We look forward to keeping you apprized of our progress and
thanks again for your interest in Endologix.

Operator: Ladies and gentlemen, that concludes your conference call for today. We thank you for your participation and ask
that you please disconnect your line.

END