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Corporate Presentation September 2015 OTCQB: VYCO

Corporate Presentation - Vycor MedicalVisual Restoration Therapy® (VRT): the only FDA-cleared therapy for the restoration of vision loss as the result of stroke or brain damage NeuroEyeCoach™:helps

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Page 1: Corporate Presentation - Vycor MedicalVisual Restoration Therapy® (VRT): the only FDA-cleared therapy for the restoration of vision loss as the result of stroke or brain damage NeuroEyeCoach™:helps

Corporate Presentation

September 2015

OTCQB:VYCO

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Safe Harbor Statement

Information in this document constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast", "anticipate", "estimate", "project", "intend", "expect", "should", "believe", and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve, and are subject to known and unknown risks, uncertainties and other factors which could cause VYCOR MEDICAL's actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. The risks, uncertainties and other factors are more fully discussed in VYCOR'S SEC filings. All forward-looking statements attributable to VYCOR herein are expressly qualified in their entirety by the abovementioned cautionary statement. VYCOR disclaims any obligation to update forward-looking statements contained in this estimate , except as may be required by law. The recipient acknowledges that Vycor Medical, Inc. is a publicly traded company. Recipient acknowledges that any confidential information constituting material nonpublic information that Vycor Medical, Inc. provides to the recipient is being provided to the recipient in reliance upon the agreement that the information will remain confidential. By accepting this material, the recipient acknowledges that it is aware of the applicable requirements of the federal securities laws relating to material non-public information and trading in securities of Vycor Medical, Inc.

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Key Stats (OTCQB: VYCO)

Stock Price (8/31/15) $1.60

52 Week Low-High $1.00-$2.65

Avg. Vol. (3 mo.) 14,862

Shares Outstanding 10.9M

Free Float (est.) 59%

Insider Holdings1 41%

Institutional Holdings <1%

Market Cap $17.4M

Enterprise Value $16.7M

Date Founded 2005

Employee Count 17Data sources: Yahoo! Finance, S&P Capital IQ, company estimates

(mrq) = most recent quarter as of June 30, 2015

(ttm) = trailing twelve months as of June 30, 2015

1) Insiders include directors and Fountainhead Capital Management

2) For the reconciliation of non-GAAP Information to GAAP, see related slides in Appendix

3) Based on three months ended June 30, 2015.

4) ViewSite Brain Access System (VBAS)

VBAS Hospital Approvals (U.S.)4Total Revenue (ttm) $1.2M

Non-GAAP Cash Op. Exp. (ttm)2 $2.5M

Non-GAAP Net Loss (ttm)2 $1.7M

Non-GAAP EPS (ttm)2 $(0.15)

EV/Revenue (ttm) 13.8X

EBITDA Loss (annualized)2,3 $1.3M

Cash (mrq) $1.0M

Total Assets (mrq) $2.8M

Total Debt (mrq) $0.3M

151

186202

2013 2014 YTD

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Vycor Medical is focused on providing the medical community with innovative and superior surgical and therapeutic solutions

Through our two business units, Vycor Medical and NovaVision, we are pursuing minimal or non-invasive approaches to treating brain disorders or injury

Our portfolio of FDA-cleared medical solutions are changing and improving lives every day

Technology validated by numerous independent third party practitioners and by clinical studies

Robust patent portfolio: 43 patents and 14 pending

Who We Are

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Our Two Product Lines

Most comprehensive, commercially available and clinically-supported line of complementary therapies:

Visual Restoration Therapy® (VRT): the only FDA-cleared therapy for the restoration of vision loss as the result of stroke or brain damage

NeuroEyeCoach™: helps patient compensate for vision disorders as a result of stroke or brain damage

ViewSite™ Brain Access System (VBAS)• VBAS is a revolutionary neurosurgical device used

to retract and gain access to targets within the brain

• Allows access to tumors or other pathologies, or physical objects, like bullets or shrapnel fragments

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NovaVision’s suite of complementary therapies

helps patients with vision disorders resulting

from stroke or brain injury

Similar to recovery from motor deficits after

brain injury, where repetitive stimulation has

proven effective in recovery of patient functions

such as movements of lower limbs, systematic

repetitive visual training can lead to improved

visual sensitivity and function

By stimulating the adjacent neuronal pathways,

they assume some of the functionality that had

been lost, effectively creating a bypass

mechanism

NovaVision

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8 Million Stroke Survivors in the U.S. – 30% or 2.4 Million Suffer from Vision Disorders1 $13 Billion Global Market Opportunity1

7

Multi-Billion Dollar Market Opportunity for NovaVision

US$2B

Europe$2BROW

$9B

Suffer from Vision Disorders

2.4M or30%

• Vision loss from stroke and traumatic brain injury (TBI) has been largely unaddressed

• Every 40 seconds someone has a stroke

• Every year 600,000 people suffer from vision disorders due to stroke or TBI

• NovaVision: ~$4bn in the US/Europe, ~$13bn globally

• Stroke associations & support groups total over 6,000 in the US, powerful disseminators

• Most patients touch a stroke rehab center/clinic

1) Company estimate

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Recently launched Internet-delivered VRT and NeuroEyeCoachtherapy suite

• VRT the only FDA cleared therapy for restoration of this type of vision loss

• NeuroEyeCoach also FDA registered

Validated by Healthcare Professionals

• HealthSouth has approved VRT diagnostic and NeuroEyeCoach to be offered in its 100+ rehab hospital network, the largest in the US

• 200+ prescribing physicians in the US, 38 partners clinics in Europe

No clinically supported alternative

• No other real competitors – Sight Science the largest, purchased in 2012

• Fully patent-protected: 34 granted and 4 pending patents

An Unrivaled Approach…

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Clinically Demonstrated to Restore and Make the Most of Remaining Vision

VRT: 15 years of research, 20 clinical studies including a 302 patient study in which notable improvements were seen in over 70% of the patients. Prescription-based, bespoke “at home” therapy — Not an App

NeuroEyeCoach: based on empirical evidence gained from several decades of research and 14 studies on a total of 591 patients

Patient Success Stories Substantial body of testimonials from enthusiastic patients

whose lives were changed

Carol Urban, a former patient, interviews aired on 200+ US radio stations

…And it Works

“VRT makes a world of difference. Every day I feel like l see a little better. This would not be possible without NovaVision.

This is second time NovaVisionsaved my eye sight when no-one else would help. Your program is a life saver I can smile again.”

- Annette, a VRT and NeuroEyeCoach patient, Aug. 2015

“We do not need a new brain, but innovative methods of treatment to overcome the functional consequences of brain injury”- Prof. Josef Zihl

NovaVision Scientific Advisor

9

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Impact on daily life can be dramatic, enabling a patient to live at home alone, cross the road unaided, shop, read and even drive

Pre-VRT Post-VRT

“My vision began coming back after the first month of therapy…I passed my driving test, can read normally, and enjoy driving my boat on the lake…my life is back to normal.”– Stroke survivor & VRT patient

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An Important Therapy for Daily Life

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Patients Professionals

NovaVision will Launch New Model in Europe Q4 & Roll Out Similar Strategies11

Multi-Faceted Growth Strategy

Stroke Associations & Support Groups• Over 6,000 in the US, powerful disseminators;

identified, mailing and marketing to them• Partnered with American Stroke Association

Stroke Rehabilitation Centers and ClinicsMost patients touch a rehab center/clinic• VRT Diagnostic model• NeuroEyeCoach Center model• Both approved by HealthSouth

NovaVision’s Multi-faceted Marketing Strategy to Drive Awareness & Adoption Into Key Interest Groups

Physicians and Other Healthcare ProfessionalsVRT is a prescription-only therapy• NovaVision referral program: >200 prescribers• Pro Physician Model• Website, in-bound and out-bound marketing

Direct to Patients47% of our enquires come through our website• New website to drive traffic, capture info• In-bound/out-bound marketing• Multi-channel digital/social media• Blogs, media placements, success stories

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ViewSite Brain Access System

“It is the ideal system for providing deep brain access through a smaller incision.”

-Leading Neurosurgeon

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VBAS is a Step Change Improvement. Incumbent Technology Hasn't Changed in Over 50 Years13

• Less brain tissue damage

• Less invasive: requires smaller opening

• Better access

• Better visibility

• Self-contained working channel

• Reduced operating and recovery time

The Future Standard of Care

Old Blade/Ribbon Retractor Technology

VBAS Next Generation Technology

Allows for use in procedures previously considered inoperable, saving lives

VS.

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VBAS Saves Lives

Previously Inoperable…Now Operable

“Her case would have been inoperable via a traditional surgery, because she was taking Avastin®, which delays surgical wound healing.

“The VBAS’ minimally invasive nature enabled the surgeon to gain access to the target through only a 3cm incision.

“The patient was discharged uneventfully and there were no issues regarding her wound.”

– Daniel Prevedello, MD, Director of the Minimally Invasive Cranial Surgery Program, Ohio State University

Bullet fragment removal“We would not have attempted this without this technology. It’s very exciting” – Narayan Sundaresan, MD, Chief Neurosurgeon at Lincoln Medical

Center, NY, and Professor at Mount Sinai Hospital, NYC

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Large body of clinical papers and studies evidence VBAS’ clinical superiority and improved patient outcomes; including VBAS appearing on the cover of the prestigious Journal of Neurosurgery in March 2015

International presence with regulatory approvals in key international markets including Australia, Brazil, China, Europe, Japan and Russia

Technology protected by 10 granted and 9 pending patents in the U.S. and abroad

Patented, Validated & Approved Technology

Approved for Use in 202 Hospitals, including the Nation’s Leading Medical Centers

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Virtual Business Model Enables Vycor to Leverage Both Internal and Outsourced Partner Resources to Maximize Efficiency & Reduce Cost 16

Vycor operates upon “virtual outsourced” business model to focus its resources on product development and direct targeted marketing to physicians and hospitals

Manufacturing: outsourced to qualified sub-contract manufacturer

US sales: outsourced to 20 distributors with av. 4-5 reps each who are experts in the neurosurgical device space, have local presence and are in the OR daily

International sales and marketing: outsourced to leading distributors in each country/region focused on neurosurgical devices

Virtual Company: Reduces Cost

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Four-Part Growth Strategy

US Market Penetration

• Well-defined market of 4,000 surgeons

• Strengthening the distributor network

• Broaden VBAS usage beyond “deep and difficult”

• Focus on key teaching hospitals

Clinical data

• Drives adoption and user acceptance, increases revenues

• 5 papers already in 2015

• Moves VBAS up the hospital cost/benefit curve

• Provides evidence of broader applicability

International

• Target markets with patent protection and/or clear regulatory path

• Use distributors with experience in neurosurgical devices

• Focus on Brazil, larger European markets, Asia

New Product Development

• VBAS provides platform for product extensions

• Objective to broaden adoption and increase applicability

• Set of 2 smaller VBAS devices

• Developing 4 new IGS-compatible devices

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Industry/Peer Comparables

($ in millions) (mrq)MRI

Interventions (MRIC)

ViewRay(VRAY)

Ekso Bionics Holdings(EKSO)

Avinger (AVGR)

CorindusVascular Robotics (CVRS)

Second Sight Medical Products

(EYES)

Revenue ($M) 0.8 0.2 2.1 3.0 0.9 2.7 0.3

Gross Profit to Sales Ratio 52% (248)% 24% 46% (4)% 41% 88%

Operating Expenses to SalesRatio

317% 3,938% 290% 344% 759% 227% 248%

Income (Loss) from Operations ($M)

(2.2) (9.7) (5.6) (9.1) (6.9) (4.9) (0.5)

Net Income (Loss) ($M) (3.1) (10.3) (5.6) (10.2) (7.3) (4.9) (0.4)

Market Cap (9/14/2015) ($M) 50.2 256.1 132.8 178.3 467.0 355.4 14.6

Price/Sales Ratio 14.6x 72.7x 19.3x 16.4x 165.2x 54.8x 12.1x

Net Cash Flow (2.9) 3.3 (4.9) (8.7) 36.9 (0.2) (0.3)

Data source: S&P Capital IQ(mrq) – most recent quarter as of June 30, 2015

Vycor Medical has a Relatively Low Stock Price to Sales Ratio

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Non-GAAP Net Loss & EPS Improving2

19

Relatively low “cash burn” of $1.3M on an annualized basis 1,2

Both company businesses have high margins

Clear path to breakeven, with minimal incremental revenues required

New focus on marketing will increase cash burn, but within manageable levels and only if yielding results

Financial Discussion

$(506,944)$(473,388)

$(361,006)

$(0.05)$(0.04)

$(0.03)

-0.150

-0.130

-0.110

-0.090

-0.070

-0.050

-0.030

-0.010

0.010

-520000.000

-420000.000

-320000.000

-220000.000

-120000.000

-20000.000

Q4 2014 Q1 2015 Q2 2015

Bar

Net Income

Basic EPS

1) Based on three months ended June 30, 2015

2) For the reconciliation of non-GAAP Information to GAAP, see related slide in Appendix

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Two “game changing” product lines that are FDA-cleared (no development risk)

NovaVision VRT only FDA cleared therapy targeted at vision loss from neurological brain damage, like stroke

Extensive published clinical data highly supportive

Large addressable markets:

NovaVision: ~$4bn in the US/Europe, ~$13bn globally

Vycor: $700m globally

Limited competition that face major barriers to entry

Robust patent portfolio: 43 patents and 14 pending

Well-established international footprint

Strong new product pipeline

Management with significant “skin in the game”

Key Takeaways

VBAS Hospital Approvals (U.S.)

151

186202

2013 2014 YTD

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Peter Zachariou, CEODavid Cantor, PresidentAdrian Liddell, Chairman & CFO

Company Contacts Corporate Headquarters6401 Congress Avenue Suite 140Boca Raton, FL 33487

www.vycormedical.com

www.vycorvbas.com

www.novavision.com

www.sightscience.com

German OfficeKlausenerstr. 12 39112 Magdeburg, Germany

UK Office214 Union Street, Aberdeen, AB10 1TLScotland, UK

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Contact Us

Websites

Investor Relations ContactRon Both, Senior Managing DirectorLiolios Group Tel [email protected]

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Appendix

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Peter Zachariou

CEO & Director

David Cantor

President & Director

Adrian Liddell

Chairman & CFO

Steven Girgenti

Director

Lowell Rush

Director

Dr. Oscar Bronsther

Director

Pascale Mangiardi

Director

Extensive operating experience over range of manufacturing businesses

Active investor in variety of companies and industries, both public and private, specializing in capital formation/raising and development companies

22 years experience of Investing in, raising money for and providing strategic advice to growth companies across a broad range of sectors

Investment Banking (Citigroup, Donaldson, Lufkin & Jenrette, Lehman Brothers)

Over 30 years of strategic, corporate and financial advisory and company investment

Private equity (Phoenix Equity Partners); Investment Banking (Citigroup, Donaldson, Lufkin & Jenrette, Lehman Brothers)

Chartered Accountant

Pharmaceutical and healthcare executive with 45 years experience

Managing partner of Medi-Pharm consulting, providing strategic advice to healthcare companies

Former President and CEO of DermWorx and former Chairman of Ogilvy Healthworld

CEO of Direct Incite

Former COO of Cosmetic Dermatology,CFOof Bijoux Ternerand Little Switzerland, and has held operational and financial roles at SunGlasses Hut, Burger King and Knight-Ridder. CPA and MBA

Clinical professor at George Washington Univ. and Director of Transplant Services at Kaiser Permanente Medical Group. Previously Associate Prof. at Univ of Rochester, Univ of Pittsburg and Univ. of California San Diego

President of RougemontManagement Services

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Executive Management & Board of Directors

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Scientific Advisory Boards

Dr. David Langer

Dr. Konstantin Slavin

Dr. EzrielKornel

Prof. ArashSahraie

Alvaro Pascale-Leone, MD/PhD

Jason S. Barton, MD

Joseph Zihl, MD

Jose Romano, MD

Vycor Vycor Vycor NovaVision NovaVision NovaVision NovaVision NovaVision

Director of Cerebrovascular Neurosurgery at St. Luke’s-Roosevelt, Beth-Israel and Long Island College Hospitals (New York, NY)

University of Illinois at Chicago (Chicago, IL); AlexianNeuroscience Center (Elk Grove Village, IL); Director of Illinois Gamma Knife Center

Director, Institute for Neurosciences at Northern Westchester Hospital Center (Mount Kisco, NY); President-elect New York State Neurosurgical Society; Board of Directors, Medical Liability Mutual Insurance; Director for Center NeurochiropracticEducation

Professor, Chair in Vision Sciences at Univ. of Aberdeen (UK); PhD in Optics and Visual Science, City Univ. (London, UK); Founder of Sight Science Ltd

Professor of Neurology at Harvard Medical School; Director of Research, Cognitive Neurology Unit, Beth Israel Deaconess Medical Center; MD/PhD Neurophysiology, Albert-Ludwigs Univ(Germany); Former Medical Fellow National Institute of Health; Author 450+ Scientific papers as well as several books

Professor of Neurology, Ophthalmology and Visual Sciences, University of British Columbia

Prof. Josef Zihl, Prof. emeritus in the Department of Psychology at University of Munich (Germany), and Head (retired) of the Neuropsychology Research Group at the Max Planck Institute of Psychiatry Munich

Chief of Stroke Division and Professor of Neurology at the University of Miami Miller School of Medicine

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Management uses certain non-GAAP financial measures (including non-GAAP operating expenses and non-GAAP net loss and loss per share), which exclude non-cash amortization of acquired intangible assets, non-cash stock-based compensation, one-time Offering costs and the change in value of derivative warrant liability. Management does not consider these costs in evaluating the continuing operations of the Company. Therefore, management calculates the non-GAAP financial measures provided in this presentation excluding these costs and uses these non-GAAP financial measures to enable it to analyze further, and more consistently, the period-to-period financial performance of its core business operations.

Management believes that providing investors with these non-GAAP measures gives them additional important information to enable them to assess, in the same way management assesses, the Company's current and future continuing operations. There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. For reconciliations of the non-GAAP financial measures to the comparable GAAP financial measures, see related slide in Appendix.

Reconciliation of Non-GAAP Information

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Non-GAAP Reconciliations & Trailing Twelve Month Calculations

Q3 2014 Q4 2014 YR 2014 Q1 2015 Q2 2015 TTM

Revenue $334,339 $259,291 $1,250,292 $328,552 $286,018 $1,208,200

Non-GAAP Cash Operating Expenses (Note)

Non-GAAP Operating Expenses ($606,847) ($711,124) ($2,633,309) ($738,410) ($601,202) ($2,657,583)

Add back: all D&A (Note) $35,243 $23,033 $134,138 $24,032 $28,091 $110,399

Non-GAAP Cash Operating Expenses ($571,604) ($688,091) ($2,499,171) ($714,378) ($573,111) ($2,547,184)

Non-GAAP Operating Loss ($319,848) ($482,070) ($1,539,317) ($461,550) ($349,165) ($1,612,633)

Non-GAAP EBITDA ("Cash Burn") (Note)

Non-G Operating Loss ($319,848) ($482,070) ($1,539,317) ($461,550) ($349,165) ($1,612,633)

Add back: all D&A (Note) $35,243 $23,033 $134,138 $24,032 $28,091 $110,399

Non-GAAP EBITDA ($284,605) ($459,037) ($1,405,179) ($437,518) ($321,074) ($1,502,234)

Non-GAAP Net Loss ($344,722) ($506,944) ($1,670,036) ($473,388) ($361,006) ($1,686,060)

Non-GAAP Net Loss Per Share ($0.03) ($0.05) ($0.22) ($0.04) ($0.03) ($0.15)

Note

Disclosed Non-GAAP Operating Expenses adds back only amortization on acquired intangible assets. Non-GAAP Cash Operating Expenses and Non-GAAP Operating Loss Before Depreciation And Amortization ("EBITDA") adds back all Depreciation and Amortization.