Sep 2, 2003
Guidant Acquires Innovative Polymer Technology for Drug Eluting Stent Program

"Programmable" Polymer Capabilities Strengthen Guidant''s Development of Future Therapies for Coronary Artery Disease

Indianapolis and Santa Clara, Calif. - Guidant Corporation (NYSE: GDT), a world leader in the treatment of cardiac and vascular disease, today announced that it has acquired the right to use certain bioabsorbable polymer technologies developed by MediVas LLC, a San Diego, Calif.-based company. The agreement provides Guidant with an exclusive worldwide license to these bioabsorbable polymer products, related pre-clinical and clinical data, and intellectual property for use with drugs in the "rolimus" family, as well as a non-exclusive license for use with certain other therapeutic agents. Everolimus is Guidant''s lead drug in its drug eluting stent program.

"This acquisition of ''next-generation'' polymer technology will strengthen Guidant''s capabilities in developing advanced biocompatible drug delivery solutions," said Dana G. Mead, Jr., president, Vascular Intervention, Guidant. "As we continue to make progress with our multiple-technology, multiple-polymer drug eluting stent program, we envision utilizing this innovative polymer technology - which has been specifically designed for vascular use - in future generations of our drug eluting stent portfolio. In addition, these ''programmable'' polymers may serve as a key technology for our fully bioabsorbable stent program. We remain confident in our everolimus eluting stent program and anticipate our first market launch in 2005."

Under the agreement, MediVas will receive an up-front cash payment of $35 million, which will be recorded as in-process research and development (IPRD) in Guidant''s third quarter, and may receive additional payments based on the achievement of development milestones. MediVas also may receive royalties on Guidant''s sales of licensed products utilizing the technology. The IPRD charge will reduce earnings per share (EPS) from continuing operations as reported under generally accepted accounting principles by $0.11. EPS on an as adjusted basis will not be impacted by this charge.

"I am encouraged by the performance of this bioabsorbable polymer designed for specific vascular applications," said Costantino Costantini, M.D., Ph.D., F.A.C.C., Clinica Cardiologyca C. Costantini, Curitiba, Brazil, principal investigator in the NOBLESSE (Nitric Oxide through Bioabsorbable Layer Elective Study for Safety and Efficacy) clinical trial, in which the polymer was evaluated. "The initial animal and clinical data have demonstrated safety and biocompatibility."
Guidant Progresses with Everolimus Program

On August 28, Guidant filed the first module submission to European regulatory authorities for approval of Guidant''s CHAMPION(tm) drug eluting stent and delivery system with a bioabsorbable polymer and everolimus. The submission included the positive six-month data from the FUTURE I clinical trial. The company also expects to present six-month FUTURE II data and preliminary 12-month FUTURE I clinical follow-up at the Transcatheter Cardiovascular Therapeutics (TCT) Conference taking place September 15-19 in Washington, D.C.

About the Polymer Technology

Guidant has acquired from MediVas fully bioabsorbable, amino acid-based polymer technology specifically developed for vascular use. The polymers were designed for blood compatibility and for "customization" for use in multiple applications. Pre-clinical and clinical data have been collected using the polymer, including the NOBLESSE clinical trial. NOBLESSE is a multi-center, prospective, nonrandomized clinical trial with a primary endpoint of in-stent late loss at four months and secondary endpoints of 30-day, 60-day, and four- and 12-month MACE (major adverse coronary event). Twelve-month data from the NOBLESSE clinical trial will be presented at the TCT Conference.
About MediVas

MediVas LLC is privately held, San Diego, Calif.-based firm that primarily focuses on developing technologies for diagnosis and treatment of cardiovascular diseases.

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 11,000 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 release includes forward-looking statements concerning the development and future uses of the polymer technology, as well as the company''s stent program generally. The statements are based on assumptions about many important factors, including continuing development of the products, including sustained clinical and regulatory progress; the integration of the polymer into other products, including initiatives that remain in their early stages, such as fully bioabsorbable stents; and other factors identified on Exhibit 99 to the company''s most recent 10-Q. Actual results may differ materially. The company does not undertake to update these forward-looking statements.