Jan 2, 2003
Guidant to Acquire Biosensors'' Everolimus Eluting Stent Assets

Agreement Strengthens Guidant''s Everolimus Eluting Stent Program Company to Host Webcast/Conference Call January 3 at 8:30 AM EST

Indianapolis, Ind. - Guidant Corporation (NYSE and PCX: GDT), a world leader in the treatment of cardiac and vascular disease, today announced that the company has agreed in principle to acquire certain assets of Biosensors International''s everolimus eluting stent program. The agreement will provide an exclusive worldwide license to Biosensors'' intellectual property in the field of everolimus eluting stents. Guidant also obtains a nonexclusive license to Biosensors'' drug and bioabsorbable polymer formulation technology for use with other drugs. Guidant previously acquired an exclusive, worldwide license to the drug everolimus from Novartis Pharma AG for use in drug eluting stents.

Under the proposed agreement, Biosensors will receive an up-front cash payment for the asset purchase and licensing fee and may receive additional cash milestone payments based on the performance of Biosensors'' everolimus stent products in clinical trials. Guidant will make an additional cash payment upon CE Mark approval, as well as royalty payments on future Guidant product sales that utilize Biosensors'' technology. The transaction is subject to further due diligence and the completion of a definitive agreement, which is expected to be completed within the next 90 days. The agreement is subject to clearance under the United States Hart-Scott-Rodino Antitrust Improvements Act.

"This proposed agreement strengthens Guidant''s everolimus eluting stent program," said John M. Capek, Ph.D., president, Vascular Intervention, Guidant. "We are enthusiastic about Biosensors'' bioabsorbable polymer technology and the potential of everolimus as a next-generation compound for drug eluting stents. We look forward to complete presentation of the results of Biosensors'' FUTURE I clinical trial utilizing everolimus later in the first quarter."

"I am encouraged by the results of Biosensors'' studies of everolimus to date," said Prof. Eberhard Grube from the Herzzentrum Siegburg in Germany, principal investigator for Biosensors'' FUTURE I and FUTURE II studies. "I believe that an expanded number of patients and physicians will ultimately benefit from this agreement, which allows Guidant to leverage the significant technical and clinical work Biosensors has conducted to date with its own internal everolimus eluting stent program."
Guidant''s Everolimus Program on Schedule

Guidant continues to make significant progress in its internal everolimus program. Guidant''s positive pre-clinical data on everolimus in coronary stenting applications was presented at the 2002 Transcatheter Cardiovascular Therapeutics (TCT) conference. The company anticipates its first human implant of an everolimus eluting stent in the first quarter under the Vision-E trial, a feasibility study for an everolimus eluting MULTI-LINK VISION(tm) Coronary Stent System utilizing Guidant''s proprietary TRUE COAT(tm) polymer.

On December 20, Novartis Pharmaceuticals Corporation announced the submission of a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for Certican(tm) (everolimus).
Webcast

Guidant will host a live webcast briefing tomorrow, January 3, at 8:30 AM EST to discuss these events and 2003 financial guidance. Guidant President and CEO Ronald W. Dollens and John M. Capek, Ph.D., president, Vascular Intervention, will host the briefing. The webcast will be accessible through Guidant''s website at www.guidant.com/webcast or at CCBN's individual investor center at www.companyboardroom.com. The webcast will be archived on both websites for future on-demand replay.

Guidant Corporation pioneers lifesaving technology, giving an opportunity for better life today to millions of cardiac and vascular patients worldwide. The company, driven by a strong entrepreneurial culture of more than 10,000 employees, develops, manufactures and markets a broad array of products and services that enable less- invasive care for some of life''s most threatening medical conditions. For more information visit www.guidant.com.

NOTE TO MEDIA: For more information about Guidant, including its products and services, please visit the company''s newsroom at www.guidant.com/newsroom.

This release includes forward-looking statements concerning the agreement and the company''s everolimus program. The statements are based on assumptions about many important factors, including satisfaction of the conditions described in the release, clinical and regulatory timelines and developments, and other factors identified on Exhibit 99.1 to the company''s most recent 10-Q. Actual results may differ materially. The company does not undertake to update its forward-looking statements.

System requirements for the webcast include Internet Explorer 5.0 (or higher) or Netscape Navigator 4.0 (or higher.)Users also should have the most recent version of Windows Media Player, which can be downloaded for free at http://www.microsoft.com/windows/windowsmedia/en/download/. Users may experience varying levels of performance based on their connection speed, system capabilities and presence of a corporate firewall. To ensure a connection, users should go to the program five to 15 minutes before its start.