Aug 26, 2003
Guidant Announces Share Repurchase at Mid-Quarter Conference Call Today

Company Outlines Progress Toward Drug Eluting Stent Milestones; Third Quarter and Full-Year 2003 Financial Guidance Affirmed

Indianapolis, Ind. - Guidant Corporation (NYSE: GDT), a world leader in the treatment of cardiac and vascular disease, will host its previously announced mid-quarter conference call today, Tuesday, August 26, at 8:00 a.m. EDT.

During the call, the company will announce its plans to repurchase up to $250 million of Guidant common shares within the next year. The repurchases will occur at such times and prices as management determines, and may be completed through open market and/or privately negotiated transactions. The repurchases are intended to offset dilution associated with the company''s equity compensation programs.

Guidant will also outline progress made in its drug eluting stent programs, including the first module submission later this week to European regulatory authorities for approval of Guidant''s CHAMPION(tm) drug eluting stent and delivery system. The submission will include 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.

Additionally, the company plans to affirm previously provided third quarter and full-year 2003 financial guidance. The company had established a sales range of $3.65 - $3.80 billion for the year-ended 2003. For the third quarter, the company anticipates sales in the range of $910 - $950 million. Confirmed adjusted earnings guidance is $0.52 - $0.57 for the third quarter, and $2.27 - $2.37 for the full year. Related GAAP earnings per share for the full year, including previously reported charges, is $1.30 - $1.40.

Participating on today''s conference call will be Fred McCoy, president, Cardiac Rhythm Management, Guidant Corporation; Dana Mead, president, Vascular Intervention, Guidant Corporation; and Keith Brauer, vice president, finance and CFO, Guidant Corporation.

A live webcast of Guidant''s conference call will be accessible through the company''s website at www.guidant.com/webcast or at CCBN's individual investor center at www.companyboardroom.com. The webcast will be archived on both websites for future on-demand replay. Additional financial information concerning Guidant is available at www.guidant.com/investors.

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 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.

Guidant provides earnings per share guidance on an adjusted basis from continuing operations because Guidant's management believes that the presentation provides useful information to investors. Among other things, it may assist investors in evaluating the company's operations period over period - which is also the basis on which it generally is most reasonable to forecast results. This measure may exclude such items as business development activities (including purchased in-process research and development (IPRD) at acquisition or upon attainment of milestones), strategic developments (including restructurings and product line changes) and significant litigation. Special items may be highly variable, difficult to predict, and of a size that sometimes has substantial impact on the company's reported operations for a period. Generally, prospective quantification of them is not reasonable. For the year to date, the company has identified special items of $0.97 per share. The company continues to evaluate business development opportunities, which may generate additional IPRD charges in the balance of the year, and other special items may arise. Further, because the company provides guidance for continuing operations, guidance does not reflect matters classified as discontinued operations. As previously announced, the company anticipates recording total after-tax losses from discontinued operations of $100 to $125 million in 2003. Management uses these measures internally for planning, forecasting and evaluating the performance of the business, including allocating resources and evaluating results relative to employee performance compensation targets. Investors should consider non-GAAP measures in addition to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP.

This release includes forward-looking statements concerning share purchases, DES progress and financial guidance. The statements are based on assumptions about many important factors, including the availability of cash for share purchases based on operating results and alternative uses of funds; market trends and competition, including sales growth rates for defibrillator and pacemaker systems and stent systems; satisfactory clinical and regulatory progress on DES products; economic conditions, including exchange rates; and the factors listed on exhibit 99 to Guidant''s most recent 10-Q. As such, they involve risks that could cause actual results to differ materially. The company does not undertake to update its forward-looking statements.

System requirements for the webcast include Internet Explorer 5.0 (or higher) or Netscape Navigator 4.0 (or higher). Users also should have the most recent version of Windows Media Player, which can be downloaded at www.microsoft.com/windows/windowsmedia/en/download/ at no cost. Users may experience varying levels of performance based on their connection speed, system capabilities and presence of a corporate firewall. To ensure a connection, users should go to the program five to 15 minutes before its start.