Oscar L. Thomas – Vice President-Business Affairs and Secretary Kimble L. Jenkins – Chief Executive Officer and Chairman David W. Carlson – Chief Financial Officer

Greetings and welcome to the MRI Interventions Inc. Third Quarter 2014 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded. I’d now like to turn the conference over to your host, Mr. Oscar Thomas. Thank you Mr. Thomas, you may begin.

Great. Good afternoon and thank you for joining us. With me are Kim Jenkins, our CEO; Frank Grillo, our President; and David Carlson, our CFO. Before we begin, I want to point out that some statements we make during today’s call will be forward-looking statements. Any statements we make today whether in our prepared remarks or in our response to questions that are not statements of historical facts may be deemed to be forward-looking statements. Forward-looking statements by their nature address matters that, to different degrees, are uncertain and involve risks and they are made based on current beliefs of MRI Interventions’ management. Uncertainties and risks may cause our actual results and the timing of events to differ materially from those expressed or implied in forward-looking statements we make today. Detailed information regarding the risks and uncertainties that could affect our actual results and the timing of events are described in the Risk Factors section of the Form 10-Q that we filed with the SEC on August 11, 2014 as well as the Form 10-Q that we will be filing with the SEC tomorrow. You can find our SEC filings in the Investors Section of our website at mriinterventions.com. With that, I’ll turn the call over to Kim.

Thanks, Oscar, and good afternoon everyone. Thank you for joining us for our Q3 2014 earnings call. On behalf of the management team and employees of MRI Interventions, we appreciate your interest in our Company, and for those of you who are shareholders, thank you for your support, we’re honored to be working for you in building this great Company. I’m pleased to welcome Mr. Frank Grillo, our President and incoming CEO on his first MRI Interventions earnings call. As many of you know, Frank joined us last month from Intuitive Surgical where he was the Senior Executive serving as Vice President of Marketing and Business Development. I know you look forward to hearing directly from Frank about his impression to the company after his first six weeks and his plans for the future. I’ll now turn the call over to David Carlson, our CFO, to walk you through our third quarter results, and then Frank and I will come back to you with some additional comments.

Thanks, Kim. I’ll first cover the results for the quarter and then we’ll talk about our year-to-date results. Disposable product revenues were $577,000 in Q3 of this year compared to $470,000 in the third quarter of 2013, representing growth of 23%. During the quarter, we’ve recognized $11,000 in product revenues related to our ClearPoint capital products compared to $380,000 in the same period in 2013. This is a nature of capital product sales, capital product revenues can vary significantly from quarter-to-quarter. Other service revenues related mostly to ClearPoint service agreements and installation services were $45,000 in Q3 of this year and $28,000 for the same period last year. Total product and other service revenues for the quarter were $633,000 compared with $878,000 in Q3 of last year, with the decline relating totally to ClearPoint capital product sales. Development service revenues of $49,000 related to contract product development were earned during Q3 of 2013 and no such revenues were recorded during the third quarter of this year. The decrease reflects the completion of the development project the Company has performed on a contract basis. The Company does not expect development services to be an ongoing source of revenues. Cost of product revenues was $316,000 for Q3 of 2014 compared to $365,000 for the same period last year, a decrease of 13%. Research and development costs were $873,000 in Q3 of 2014 compared to $725,000 for the same period in 2013. Selling, general and administrative expenses were $2.1 million in the third quarter of this year compared to $1.7 million for Q3 of 2013. Net other expense was $743,000 for Q3 of 2014 compared to $1.2 million for the same period last year. Net interest expense was $286,000 for Q3 of this year compared with $122,000 for Q3 of 2013. Our net…

Thanks, David. I’ll make a few quick comments about the quarter and then turn the call over to Frank. First, a comment about our ClearPoint capital sales and additional progress on growing our ClearPoint footprint. As David mentioned, we did not report any system sales during our third quarter. As we stated before, revenue from the sale of capital can vary significantly from quarter-to-quarter. This occurred in Q3. It’s a nature of our capital equipment revenue stream and except worth impact on Q3 revenues it’s not a source of meaningful concern for us. We are continuing to make solid progress in building out our ClearPoint footprint. During the third quarter, we installed systems at two new sites and in a strong start to this fourth quarter, we’ve already signed up two additional sites, one of those the capital sale and the other under our ClearPoint Placement Program. Turning to disposable, as David stated, we recorded $577,000 in revenues from the sale of disposable products. This is our second highest quarter ever and up 23% over Q3 of last year. During the quarter, we continued to make solid and significant progress in building the value of our ClearPoint franchise. Our ClearPoint system continues to perform well, neurosurgeon interest and support for ClearPoint continues to grow, and the footprint of our ClearPoint installed base continues to expand. Taken together, these are the fundamental building blocks of our business. The foundation of our business is continuing to grow and get stronger. I’m thrilled to have Mr. Frank Grillo joining us as President and soon incoming CEO on January 01. This is a major development for our company and one that positions us very well for the future. Over the course of the summer, I led the executive search effort. We had a number…

Thanks and thank you for that introduction. I appreciate it. To begin with, I want to say how excited I am to be here and to build on a solid foundation that has been put in place over the last few years under Kim’s leadership. I appreciate the opportunity to share my initial thoughts on the company and our opportunities going forward, and also where I will focus our efforts going forward. First, it is clear to meet that MRI Interventions has a proven product and a strong base of initial users. With ClearPoint, we also have a tremendous market opportunity. Over the summer, we retained a third party consulting firm to conduct extensive market research to assist us in our targeting efforts and to help us better understand our market opportunity. After evaluating the data collected by that firm, I believe the annual U.S. ClearPoint opportunity is more than 55,000 procedures per year. This market size is based upon estimates of the potential for knee replacement, laser ablation for both epilepsy and brain tumors and brain biopsy procedures using our current ASP that translates into an annual revenue of over $400 million in just the U.S., revenue potential of over $400 million each year, that’s a significant market opportunity and we’re just getting started. Now let me give you some details behind that aggregate number by looking at the three main disease stages that ClearPoint enabled therapies currently address. We had a strong value proposition in treatments with Parkinson’s disease, epilepsy and brain tumors. At 55,000 potential ClearPoint procedures per year that I just mentioned, deep brain stimulation, electrode placement for Parkinson’s accounts for 12,500 potential procedures for an annual revenue opportunity of more than $90 million. For epilepsy, laser ablation and RNF [ph] knee replacement represent an annual…

Thank you. (Operator Instructions) At this time, there are no questions in the question queue. (Operator Instructions) This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.