Sep 17, 2002
Guidant Becomes Exclusive Licensee of Everolimus for Drug Eluting Stents

Guidant Expands Agreement with Novartis Pharma AG

Indianapolis, Ind. - Guidant Corporation (NYSE and PCX: GDT), a world leader in the treatment of cardiac and vascular disease, announced today that it has agreed with Novartis Pharma AG to expand their current license agreement by granting Guidant exclusive worldwide rights to utilize everolimus in drug eluting stents for the prevention and treatment of coronary and peripheral vascular diseases.

In March 2002, Guidant and Novartis announced the companies'' initial agreement, which gave Guidant a co-exclusive worldwide license to use everolimus in drug eluting stents. According to the terms of the expanded agreement, Guidant also has the right to grant sublicenses. Novartis will supply everolimus exclusively to Guidant for use in drug eluting stents, provide access to data supporting Guidant filings with regulatory agencies, and receive milestone payments and a royalty on sales of Guidant products utilizing the drug. The agreement is subject to clearance under the United States Hart-Scott-Rodino Antitrust Improvements Act.

"Guidant is pleased with our progress in the past six months collaborating with Novartis, and we are enthusiastic about this broadened relationship," said John M. Capek, Ph.D., president, Vascular Intervention, Guidant Corporation. "We are excited about the potential of everolimus for utilization in drug eluting stents. Results of our pre-clinical work with everolimus have been positive. With paclitaxel and everolimus, Guidant has a very strong portfolio of drug eluting stent therapies to bring to patients and physicians worldwide."

Pre-clinical data on everolimus in coronary stenting applications will be presented by Dr. Renu Virmani at the annual Transcatheter Cardiovascular Therapeutics (TCT) conference that takes place September 24-28, 2002, in Washington, D.C.

Guidant and Novartis have independently observed positive results in animal studies evaluating the effectiveness of everolimus for the prevention of restenosis. Guidant's evaluation of the compound in pre-clinical tests has utilized the company's proprietary polymer elution technology for drug eluting stents. Pending regulatory approvals, Guidant expects to initiate clinical trials of everolimus-eluting coronary stents in the first quarter of 2003.

Guidant is committed to leadership in the drug eluting stent market through multiple programs. Guidant's everolimus eluting stent program will leverage Guidant's market-leading position, proprietary technologies, broad patent portfolio and proven stent designs.

Guidant Corporation pioneers lifesaving technology, giving an opportunity for a 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.

This press release includes forward-looking statements concerning the development of drug eluting stents and related timelines. The statements are based on assumptions about many important factors, including clinical results, regulatory approvals and timelines, litigation, and the factors listed on Exhibit 99.1 to the company''s most recent 10?Q. The company does not undertake to update its forward-looking statements.