Aug 1, 2002
Guidant Invests in Innovator of Surgical Devices for Heart Surgery

Cardica, Inc. Develops Anastomotic Devices Designed to Make Procedure Faster, Easier

Indianapolis, Ind. and Menlo Park, Calif. - Guidant Corporation (NYSE and PCX: GDT), a world leader in the treatment of cardiac and vascular disease, today announced that it has made a $10 million investment in Cardica, Inc. Cardica develops innovative devices designed to enable physicians to quickly join vessels in off-pump coronary artery bypass surgery, also called beating-heart surgery, as well as in traditional, on-pump, coronary artery bypass graft procedures.

Anastomosis, the connecting of vein grafts to the aorta and coronary arteries of the heart, is one of the most challenging aspects of performing traditional bypass and beating heart surgery. Cardica is developing a system to provide surgeons with an easy-to-use, automated method for joining vessels without sewing, dramatically reducing surgery time, allowing for reproducible results, and reducing the likelihood of adverse events.

"This strategic investment supports Guidant''s commitment to bringing the most innovative technologies for cardiac surgery to patients and physicians," said Nicky Spaulding, president, Cardiac Surgery, Guidant Corporation. "We are enthusiastic about the benefits of beating-heart surgery to patients, and we anticipate that automated technologies like Cardica''s will help speed adoption of this growing procedure and further drive minimally invasive approaches to cardiac surgery."

"At Cardica, we are working to improve the quality and consistency of bypass surgery while reducing the invasiveness and time required for this lifesaving procedure," said Bernard Hausen, M.D., Ph.D., chief executive officer of Cardica. "Guidant''s investment is important both in validating Cardica''s technology as well as advancing our development and clinical programs."

Beating-heart surgery allows physicians to perform bypass surgery without stopping the heart and placing the patient on a heart-lung machine. A growing body of research shows that beating-heart surgery patients experience fewer side effects such as memory loss and other neurological problems, and recover more quickly, reducing hospital stays. More than 750,000 bypass surgeries are performed annually; beating heart surgery accounts for 25 percent of these, and the number of beating heart cases continues to rise each year.

About Cardica, Inc.

Based in Menlo Park, California and founded in 1998, Cardica, Inc. is a privately-held company developing medical devices to be used in the connection of blood vessels, a critical step in many surgical procedures. The company''s initial focus is on developing proprietary products to facilitate coronary bypass surgery.

About Guidant Corporation

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.