Aug 20, 2003
Guidant Increases Investment in Innovator of Heart Surgery Devices

Additional Equity Investment Strengthens Guidant''s Commitment to the Development of Future Technologies for Heart Surgery

Menlo Park, Calif. - Guidant Corporation (NYSE: GDT), a world leader in the treatment of cardiac and vascular disease, today announced that it has increased its equity investment by $4 million in Cardica, Inc., a privately held developer of innovative devices for use in coronary artery bypass surgery. The financing follows an August 2002 initial investment of $10 million and strengthens Guidant''s commitment to physicians and patients through leadership in developing minimal-access technologies for cardiac surgery.

"This investment supports Guidant's ongoing strategy of partnering with companies that are bringing forward the most innovative technologies for cardiac surgery to patients and physicians," said Maria Degois-Sainz, president, Cardiac Surgery, Guidant Corporation. "We are excited about the important advances Cardica has made in developing its automated anastomosis devices for cardiac surgery, and we anticipate these technologies will help further transform heart surgery into a less-invasive treatment for patients suffering from heart disease."

Cardica received European approval [Conformité Européene (CE) Mark] in March 2003 for its PAS-Port(tm) proximal anastomosis device, which is designed to provide surgeons with an easy-to-use, automated method for joining vessels without sewing, and to potentially reduce surgery time and allow for more reproducible results. The device has exhibited favorable six-month patency data on the first 50 bypass grafts. Cardica''s initial clinical trial of its C-Port(tm) distal anastomosis device began in Europe recently. Anastomosis, the process of connecting vessels to the heart to bypass a blocked vessel, is one of the most challenging aspects of performing bypass surgery. Advancements in anastomosis techniques will potentially allow surgeons to perform less-invasive bypass procedures in the future without opening the patient''s chest.

"Surgical treatment of coronary artery disease continues to show excellent long-term results and proven benefits to patients," said Bernard Hausen, M.D., Ph.D., chief executive officer of Cardica. "The challenges physicians have faced with current techniques for surgical coronary revascularization are the invasiveness and the associated trauma to the patient. Cardica''s vision is to provide surgical products that will eventually allow an anastomosis to be performed through keyhole access without the need for cardiopulmonary bypass, making coronary bypass surgery an outpatient procedure. Guidant's investment both validates and advances Cardica's technology development and clinical programs. It continues to be a great partnership."
About Beating Heart Surgery

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, recover more quickly, reducing hospital stays. More than 650,000 bypass surgeries are performed annually worldwide; beating heart surgery accounts for 25 percent of these, and the number of beating heart cases has increased each year.
About Cardica, Inc.

Based in Redwood City, Calif., and founded in 1997, 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.

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 future development of anastomosis devices. The statements are based on assumptions about many important factors, including continuing development of the product, including clinical and regulatory progress, 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.