May 21, 2001
Guidant Provides Product Updates at Annual Meeting of Shareholders

Emerging Therapies Position Company for Future Success

Indianapolis, Ind. - Ronald W. Dollens, president and CEO of Guidant Corporation (NYSE and PCX: GDT), today provided a positive forecast of emerging therapies and company growth at the company's annual meeting of shareholders. Dollens also announced that he expects the company to return to double-digit sales growth in the second half of the year.

In his remarks to shareholders, Dollens discussed recent company highlights:

• Received FDA approval of its fifth and most advanced broad use coronary stent system, the MULTI-LINK PENTA? Coronary Stent System.

• Announced results of its CONTAK CD(tm) Trial; and was informed that the CONTAK CD/EASYTRAK® system will be considered by a U.S. Food and Drug Administration (FDA) medical advisory panel in early July.

• Introduced its most sophisticated pacemaker ever - the PULSAR(tm) MAX II pacing system in the U.S.

• Conducted the first implant of its VENTAK PRIZM® AVT(tm) pulse generator, which is designed to treat arrhythmias that originate in either the upper or lower chambers of the heart.

"Driven by a series of expected new product launches in the U.S., including devices for intravascular radiation therapy and the treatment of heart failure, Guidant is anticipating double digit year-to-year growth in the second half of the year," Dollens said. "Accelerating sales growth in the second half of the year will be accompanied by significant investment in clinical trials and field force expansions to support future opportunities."

"The cornerstone for Guidant's future success rests in three key areas," said Dollens. "These include our focus on innovative new therapies directed toward important clinical conditions, our continuing progress toward operational excellence and our commitment to support, encourage and advocate a global health policy that provides patients with broad access to medical technology. Our proven record in the application of novel therapeutic solutions to cardiac and vascular disease will continue to define our opportunity for growth; and our ability to impact both the human and financial challenges of delivering quality health care will dictate our success."

Guidant's growth is predicated upon rapid regulatory approval and adoption of the company's emerging therapies, which include:

Heart Failure - Guidant's CONTAK CD/EASYTRAK system is a combination cardiac resynchronization therapy (CRT) and implantable cardioverter defibrillator (ICD) system designed for the treatment of heart failure. The CONTAK CD/EASYTRAK system was designed to provide therapy for the two most common modes of heart failure death - progressive pump failure and sudden cardiac death. The company previously announced the CONTAK CD/EASYTRAK system will be considered by a U.S. Food and Drug Administration (FDA) advisory committee panel meeting scheduled for July 10. The CONTAK CD/EASYTRAK will be considered under an expedited review process.

The company also recently announced the first implant of the CONTAK RENEWAL(tm) system, its most advanced heart failure therapy system currently under investigation anywhere in the world. The CONTAK RENEWAL device contains new diagnostic capabilities that are designed to help physicians better manage their patients' condition by capturing information that is relevant to physician decision-making.

Drug Eluting Stents - Guidant's drug-eluting stent program - PHARMA-LINK(tm) - is designed to develop a complete system for treating coronary blockages. It features a timed-release polymer drug delivery system that is designed for extended release of Actinomycin-D after the stent is implanted in the patient's artery. Guidant has the ability to tailor the drug's dose and release rate, which will allow the Company to optimize the therapeutic benefits of the treatment. Guidant anticipates the first human implant of the PHARMA-LINK system in Europe during the second quarter.

Radiation Therapy - The GALILEO® Intravascular Radiotherapy System is designed to prevent the reoccurrence of blockages in coronary arteries. GALILEO, which is fully automated and utilizes beta radiation, is a three-component system consisting of a centering catheter, source wire and source delivery unit. Guidant filed for FDA approval for GALILEO in December 2000.

Guidant continues to advance its position in other emerging therapies that have great importance to patients and health care systems. These include atrial fibrillation, carotid, peripheral and neurovascular disease, and minimally invasive alternative to traditional bypass surgery procedures. Guidant also continues to make progress with its ANCURE® ENDOGRAFT® System to treat abdominal aortic aneurysms. Pending regulatory approval, the company anticipates the product to be available during the summer.

In addition to making medical progress in emerging therapies, Guidant remains committed to creating next-generation products in its present areas of therapeutic specialization.

Year-end Accomplishments

In a discussion of the company's 2000 operations, Dollens noted that the previous year was a productive one.

• The creation of strategic partnerships that resolve outstanding legal issues while ensuring continued market leadership and protection of our intellectual property assets.

• A record number of successfully completed and established clinical trials.

• Introduction of next-generation products, developed through internal capabilities.

• Continued expansion of market and technical capabilities directed at existing and emerging therapies, including a 20 percent increase in Guidant's field presence.

• Realization of manufacturing strategy to promote global access and efficient tax implementation.

"We are encouraged by the progress we have made thus far," said Dollens. "With patients as our ally, novel therapeutic solutions of value will prevail and Guidant shareholders will experience the benefits of their involvement in the process."

The company also reported that it has recently completed its $200 million repurchase of Guidant common shares, a program announced April 23 in the company's first quarter earnings release and initiated shortly thereafter.

A global leader in the medical technology industry, Guidant Corporation provides innovative, minimally invasive and cost-effective products and services for the treatment of cardiovascular and vascular disease.

This release contains forward-looking statements about the company's future financial results, the company's prospects and products in research and development. This information is based upon management's current expectations, but actual results may differ materially from those discussed in the forward-looking statements. Factors affecting future results include those outlined in Exhibit 99.1 to the company's Form 10-Q filed May 2001.