Apr 8, 1999
Guidant and Angeion Settle Ongoing Litigation

Indianapolis, IN - Guidant Corporation (NYSE and PCX: GDT) and Angeion Corporation (Nasdaq: ANGN) announced today that they have settled all ongoing patent litigation between the two companies and their affiliates.

As part of the agreement, Angeion will grant Guidant a royalty-free nonexclusive license to Angeion''s current patents and pending patent applications covering cardiac stimulation devices and agree to an injunction prohibiting future sales of Sentinel Model 2010 implantable defibrillator. (Implantable defibrillators are placed under the skin in the patient''s upper chest. These devices monitor the patient''s heart rate and apply electrical therapy to correct abnormally fast life-threatening heart rhythms.) In addition, both sides agreed to dismiss all current litigation.

Guidant will pay $35 million to Angeion for the license described above. Guidant also agreed not to sue Angeion for future infringement with respect to sales of the Lyra Models 2020 and 2030 implantable defibrillators. Angeion agreed to pay all third party royalties on sales of these models, but did not gain any rights to Guidant''s patent portfolio for future generations of products.

"The conclusion of this agreement with Angeion allows us to focus our energies on what we do best, which is to create innovative device solutions for unmet clinical needs," noted Jay Graf, president of Guidant''s Cardiac Rhythm Management Group.

A global leader in the medical device industry, Guidant Corporation provides innovative, minimally invasive and cost-effective products and services for the treatment of cardiovascular and vascular disease. For more information on Guidant''s products and services, visit the company''s web site at http://www.guidant.com. Angeion Corporation is a developer and manufacturer of biomedical devices for improving cardiovascular health.