Allurion, a Global Leader in W********** Technology, to Become Publicly Listed Through Business Combination With Compute Health Acquisition Corp.

• llurion has created the world’s first full stack weight-loss platform featuring the Allurion Gastric Balloon, the world’s first and only swallowable, procedure-less gastric balloon for w********** and has seen revenues increase 100% year over year from 2016 to 2021

• Allurion’s technology platform includes the Allurion Virtual Care Suite, a cutting-edge digital therapeutic that combines AI-powered remote patient monitoring with a proprietary behavior change program

• To date, over 100,000 patients in over 50 countries across six continents have been treated with the Allurion Program, experiencing w**********, on average, of 30 pounds per patient

• The proposed transaction includes a fully committed Private Investment in Public Equity (“PIPE”) led by RTW Investments and a non-dilutive, synthetic royalty financing from RTW Investments that will close concurrently with the business combination

• Proposed transaction also includes additional equity investments from Former Medtronic CEO and Chairman Omar Ishrak, Former GE CEO Jeff Immelt, Leavitt Equity Partners, Naghi Group Vice Chairman Mr. Yasser Naghi, and existing Allurion investors including Novalis LifeSciences and Segulah Medical Acceleration, and Medtronic signed a non-redemption agreement with respect to a portion of its previous investment

• Proposed transaction also includes a senior secured term loan from an affiliate of Fortress Investment Group to r******** existing Allurion debt and further extend runway, and is further supported by a $100 million Chardan Equity Facility

• Omar Ishrak, Chairman of Compute Health and former Chairman of Intel, to join the Board of Directors as Co-Chairman and Lead Independent Director

• Business combination and royalty financing are expected to fund the combined company to profitability based on current plans and estimates

Allurion Technologies, (“Allurion”), a company dedicated to ending obesity, and Compute Health Acquisition Corp, a special purpose acquisition company (“Compute Health”) , announced that they have entered into a definitive business combination agreement that will result in Allurion becoming a publicly listed company. Upon closing, the combined company (the “Company”) will be named Allurion Technologies, Inc. and its common stock (the “Common Stock”) is expected to be traded on the New York Stock Exchange under the symbol “ALUR”.

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“This transaction is an important milestone for the Company. Allurion is just beginning its mission to end obesity around the world. With over 100,000 patients treated and counting, we have our sights set on touching the lives of the two billion people globally who are overweight”

“This transaction is an important milestone for the Company. Allurion is just beginning its mission to end obesity around the world. With over 100,000 patients treated and counting, we have our sights set on touching the lives of the two billion people globally who are overweight,” said Dr. Shantanu Gaur, Allurion Co-Founder and CEO. “By combining our revolutionary Allurion Balloon with a digital platform and behavior change program, we have created the world’s first and only full-stack w********** platform. We look forward to investing this capital to fulfill our mission.”

There are two billion adults around the world who are overweight and 650 million adults with obesity. Among children and adolescents, obesity has increased tenfold during the past four decades. Importantly, most w********** options are not delivering on expectations: 76% of patients are not fully satisfied by diet plans and 65% of patients fear complications related to more invasive techniques. While w********** drugs have shown to be effective, they often need to be used for life at significant costs and can result in undesirable side effects. Both patients and providers are in need of clinically proven w********** solutions that can scale globally and address these shortcomings.

Allurion is tackling this unmet need by offering the world’s first full-stack w********** platform. At the core of this platform is The Allurion Program, which combines the world’s first and only swallowable, procedure-less intragastric balloon for w********** (the “Allurion Balloon”), a proprietary behavior change program, and the Virtual Care Suite (“VCS”), an artificial intelligence (“AI”)-powered digital therapeutic and remote patient monitoring solution.

The Allurion Balloon is designed to address various shortcomings of legacy gastric balloons. It is swallowed as a capsule and filled under the guidance of a health care provider without surgery, endoscopy, or anesthesia. The placement takes approximately 15 minutes during an outpatient visit. Approximately four months later, a patented ReleaseValve™ opens allowing the balloon to empty and pass out of the body naturally. The patient does not need to return to the doctor to have the balloon removed. The Allurion Balloon has demonstrated a favorable safety profile with minimal serious adverse events.

Through the Allurion VCS, providers can securely message their patients, conduct virtual telehealth visits, and monitor patient performance remotely with AI-powered analytics that integrate data from the Allurion App, Connected Scale, and Health Tracker. Through the Allurion App, patients can access Allurion’s proprietary behavior change program—a library of over 150 w********** actions related to diet, nutrition, mental health, sleep, and goal setting—in over 15 languages.

Allurion’s revenue growth has been fueled by increasing utilization of The Allurion Program by existing providers and rapid geographical expansion. Allurion’s revenues in 2020, 2021, and 2022 were $20 million, $38 million, and $64 million, respectively. In 2022, the Company continued its worldwide expansion with the launch of the Allurion Program in Canada, Mexico, India, Australia, and Brazil. In the U.S., Allurion has launched the AUDACITY trial, an open-label, pivotal study to evaluate the safety and efficacy of the Allurion Balloon plus Moderate Intensity Lifestyle Modification Therapy Program (or “MILMTP”) versus MILMTP alone in U.S. patients.

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“With our deep experience at the intersection of healthcare, technology, and data, we see Allurion as a breakthrough platform addressing and solving one of the largest unmet medical needs in the world,” said Omar Ishrak, Compute Health Chairman. “Allurion’s unique technologies together with its track record of consistent and exceptional growth truly differentiate it from other competitive attempts at w**********. The company is uniquely positioned for long-term success in a massive addressable market.”

The proposed transaction includes a fully committed PIPE led by RTW Investments and a non-dilutive, synthetic royalty financing from RTW Investments that will close concurrently with the business combination.

“RTW is proud to support Allurion’s mission to end obesity as a lead equity investor in the PIPE, as well as provide complementary non-dilutive royalty financing that accelerates Allurion’s commercialization strategy,” said Roderick Wong, MD, Managing Partner and Chief Investment Officer of RTW Investments, LP. “We believe the Company is well-positioned to compete in the weight-loss market and provide a much-needed tool for healthcare providers and their patients.”

Dr. Shantanu Gaur, Co-Founder and CEO, founded Allurion in 2009 while at Harvard Medical School. Since receiving the CE-mark for the Allurion Balloon in 2015, Allurion has built its brand by studying its w********** program in large, diverse populations. In a study of 1,770 patients from 19 centers in nine countries, Allurion Program patients lost 14% of total body weight or 30 pounds on average after just four months. In a separate study of 522 Allurion Program patients who were monitored following balloon passage, 95% of the weight lost by such patients at four months was maintained at the one-year mark. Finally, in a study of 226 patients with type 2 diabetes or pre-diabetes treated with the Allurion Program, those with type 2 diabetes reduced their hemoglobin A1c (“HbA1c”) on average by 1.5 points and those with prediabetes reduced their HbA1c by 1.1 points, putting both diseases into remission.

The Company will continue to be led by Dr. Shantanu Gaur, Allurion’s Co-Founder and CEO, after the business combination. The expanded Board of Directors is expected to be co-chaired by longtime Allurion investor Krishna Gupta of REMUS Capital and Omar Ishrak and include Nick Lewin, Chairman of Establishment Labs (NASDAQ: ESTA).

“We were the first institutional partner of Allurion more than a decade ago, and our conviction in the market opportunity, company, management, and revolutionary technology has only grown,” said Krishna Gupta, CEO of REMUS Capital. “The global opportunity to reliably drive safe and effective w********** taps both medical and aesthetic needs of consumers and has unlimited potential. This transaction will accelerate Allurion’s path to becoming a global market leader in the w********** space leveraging its digital DNA and cutting-edge science.”

The proposed transaction also includes a senior secured term loan from an affiliate of Fortress Investment Group to r******** existing Allurion debt and further extend runway, and is further supported by a $100 million Chardan Equity Facility (the “ChEF”). Under the terms of the ChEF, after the proposed business combination has closed, Chardan Capital Markets LLC (“Chardan”) has committed to purchase up to an aggregate of $100 million of Allurion common stock from time to time at the request of Allurion. This facility will provide Allurion with the ability to raise additional capital opportunistically in the future.

“Allurion has developed a unique technology and differentiated portfolio of intellectual property,” said Christopher LiPuma, Director at Fortress. “In particular, the Company’s strong IP position in the w********** space stands out as a key asset that we believe will provide the foundation for future growth and potential partnerships.”

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