May 17, 2000
Guidant Announces Settlement Structure for Patent Litigation

Indianapolis, IN - Guidant Corporation (NYSE and PCX: GDT), a world-leader in the treatment of cardiovascular disease, announced today that it has agreed with Boston Scientific Corporation on a comprehensive settlement structure covering all current patent litigation pending between the two companies. The patent disputes involve coronary stent systems and dilatation catheters.

As part of the settlement, the companies have agreed to license certain patents to each other. In addition, the companies have agreed to certain specified financial terms depending upon the ultimate resolution of motions currently pending in Guidant''s lawsuit against Boston Scientific in Indiana related to Guidant''s stent patents, and in an appeal by Boston Scientific of a lawsuit filed by Boston Scientific against Guidant in the Northern District of California related to Boston Scientific''s dilatation catheter and stent delivery system patents. All other disputes between the companies will be immediately dismissed.

"Guidant is pleased to reach this agreement with Boston Scientific," said Ronald W. Dollens, Guidant president and chief executive officer. "We''ve eliminated the enormous expense and uncertainty that is associated with litigation, while once again taking a leadership position in creating a mutually agreeable situation that ensures that patients will continue to have access to the life-saving technologies at issue in these cases."

A global leader in the medical device industry, Guidant provides innovative, minimally invasive and cost-effective products and services for the treatment of cardiovascular and vascular disease. For more information about Guidant''s products and services, visit the company''s Web site at http://www.guidant.com.