Feb 12, 2002
Guidant and Remon to Develop Vascular Endografts with Pressure-Sensing Technology

Will Provide Physicians with a Cost-Effective, Non-Invasive Means to Monitor Aneurysm Pressure

Indianapolis, Ind., Menlo Park, Calif., and Caesaria, Israel - Guidant Corporation (NYSE and PCX: GDT), a global leader in the treatment of cardiac and vascular disease, and Remon Medical Technologies Ltd., a privately held medical device company, today announced that the companies have established a cooperative development and supply agreement to incorporate Remon's patented interactive sensor technology into Guidant's leading ANCURE® ENDOGRAFT® System, a less-invasive method for repair of abdominal aortic aneurysm (AAA).

The application of Remon's patented technology to endovascular treatment will allow physicians to monitor the pressure within the excluded AAA, a condition in which the largest artery in the body balloons to a diameter where there is an increased risk of rupture. Endovascular implants offer an important alternative to surgical treatments, and have replaced open surgery to repair the aorta in approximately 25 percent of all AAA cases.

"We are excited about combining these two technologies," said Beverly Huss, president, Guidant Endovascular Solutions. "In the future, by implanting an ANCURE device coupled with Remon's interactive sensor technology, physicians will potentially have a cost-effective, non-invasive means for monitoring the aneurysm pressure in their AAA patients."

"We are very pleased to have entered into this agreement with a world leader in cardiovascular devices," said Hezi Himelfarb, CEO of Remon Medical Technologies. "This agreement demonstrates the inherent value in Remon's unique acoustic communication technology. We believe that this technology has many applications that will dramatically impact many areas within medicine, and we are confident that this agreement is the first of many corporate partnerships for Remon."

Dr. Edward Diethrich of the Arizona Heart Institute said, "Endovascular therapy offers many advantages over open surgical repair. However, the surgeon must be vigilant of early and late leakage around endografts. In the future, by implanting endovascular grafts with Remon's interactive sensor technology, physicians will gain an additional tool to monitor implant performance over the life of the patient. In my opinion, pressure sensing has the potential to become the standard of care."

Guidant and Remon also announced today that they are joint recipients of a grant from the Israel-U.S. Binational Industrial Research and Development Foundation (BIRD), for development of this product by the two companies.

Terms of the agreement between Guidant and Remon were not disclosed.

About Guidant

Guidant Corporation pioneers lifesaving technologies, giving an opportunity for better life today to 7 million cardiac and vascular patients worldwide. The company, driven by a strong entrepreneurial culture of 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.

About Remon

Remon Medical Technologies Ltd. develops and commercializes smart, miniature implants which enable physicians to assess and treat a variety of medical conditions in a non-invasive manner. The Company's enabling technology utilizes wireless communications to exchange energy and data with miniature devices placed deep inside the body, in order to either monitor a variety of physiological parameters or to stimulate tissues and organs or to activate other devices, creating therapeutic responses. Remon's unique platform has broad applications for patient management, post-operative monitoring, nerve and tissue stimulation, local drug delivery, and drug development. Remon is backed by leading global investors, including Concord Ventures, Polaris Venture Partners, and Biomedical Investments. For more information, visit www.remonmedical.com.

About the BIRD Foundation

The Israel-U.S. Binational Industrial Research and Development Foundation, BIRD, was established by the two governments in 1977. BIRD works closely with the Office of the Chief Scientist at the Israel Ministry of Industry and Trade and with the U.S. National Institute of Standards and Technology (NIST). Both are represented on BIRD's board of directors, and the chairmanship of the board rotates between the two. The Foundation undertakes, at no cost, to find strategic partners for the development of joint products. BIRD cost-shares budgets with the two partners to the project, from the R&D stage to the final packaging and initial marketing, without taking equity. If a project succeeds, BIRD receives repayments based on actual revenues. If a project fails to reach commercial realization, BIRD does not request any repayment of its grant. For more information, visit http://www.birdf.com.