Jun 16, 2003
Guidant to Discontinue Product for Treating Abdominal Aortic Aneurysms

No Risk to Patients Implanted with ANCURE ENDOGRAFT System

INDIANAPOLIS - Guidant Corporation (NYSE: GDT), a world leader in the treatment of cardiac and vascular disease, today announced plans to discontinue its ANCURE® ENDOGRAFT® System product line for the treatment of abdominal aortic aneurysms (AAA). Patients implanted with the ANCURE ENDOGRAFT System are not at risk as a result of this decision.

"We are grateful to the many physicians who relied on the ANCURE ENDOGRAFT System for treating patients with this serious condition," said Beverly Huss, president, Endovascular Solutions, Guidant. "We understand that the discontinuation of the product will involve a time of transition, which we pledge to make as smooth as possible." The company will ship product and provide support to implanting ANCURE physicians and their patients through October 1, 2003. Beyond that date, the company will continue to support implanted patients and physicians for long-term follow-up and device tracking needs. Other than for these activities, Guidant''s AAA subsidiary, Endovascular Technologies, Inc., will cease ongoing operations.

The majority of affected employees will be offered other positions within Guidant. Carotid, biliary, neurovascular and peripheral product development initiatives will not be impacted by the reorganization. "Our Endovascular Technologies employees have demonstrated a strong commitment and numerous contributions to our ANCURE business," commented Huss. "As we move forward, we remain enthusiastic about, and will continue to invest in, the development of innovative technologies for treating patients with carotid, biliary, neurovascular and peripheral vascular disease."

The long-term safety and efficacy of the ANCURE ENDOGRAFT System has been well documented, and patients should continue with routine care and follow-up per their physicians'' recommendations. For more information, patients or physicians may call (800) 787-0382 or e-mail ancurequestions@guidant.com.

In accordance with generally accepted accounting principles, the financial results for the ANCURE ENDOGRAFT System product line will be reported as discontinued operations. For calendar year 2003, we anticipate the reported total after-tax loss from discontinued operations, including settlement charges, cost associated with closing the business and operating losses to be $100 to $125 million. See the attached schedules presenting the company''s results as reclassified for discontinued operations. See www.guidant.com/investors for additional information.

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.

This release includes forward-looking statements concerning future endograft-business related costs. The statements are based on assumptions about many important factors, including the implementation of exit plans for the endograft business and the factors listed on exhibit 99.1 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.

To review the release in its entirety, including financials, please see the PDF version.