Mar 19, 2003
Guidant Signs Definitive Agreement to Acquire Biosensors' Everolimus Eluting Stent Assets

Company Updates Status of Drug Eluting Stent Program Webcast/Conference Call Scheduled for Thursday, March 20, at 11:00 AM ET

Indianapolis, Ind. - Guidant Corporation (NYSE: GDT), a world leader in the treatment of cardiac and vascular disease, today announced that the company has entered into a definitive agreement to acquire certain assets of Biosensors International''s everolimus eluting stent program. The agreement provides an exclusive worldwide license to Biosensors'' bioabsorbable polymer formulation technology in the field of everolimus eluting stents. Guidant also obtained a nonexclusive license to utilize this technology with other drugs in drug eluting stents. Additionally, Guidant acquired the option of manufacturing and commercializing the Biosensors everolimus eluting stent that has been used in Biosensors'' clinical trials.

Under the terms of the agreement, Biosensors will receive an up-front cash payment of $20 million in March for the asset purchase and licensing fee, and may receive additional milestone payments over the course of clinical development and royalties on future sales of products that utilize Biosensors'' technology. These milestone payments will be accounted for as in-process research and development. Guidant previously acquired an exclusive, worldwide license to the drug everolimus from Novartis Pharma AG and Novartis AG for use in drug eluting stents.

"We are enthusiastic about everolimus as a compound for drug eluting stents, given our own preclinical and Biosensors'' early human clinical results," said Dana G. Mead, Jr., president, Vascular Intervention, Guidant. "This agreement provides intellectual property and valuable preclinical and clinical data that will complement our everolimus program. The ability to develop both non-erodible and bioabsorbable polymeric elution technologies is an important step forward for our drug eluting stent program.

"In light of the Biosensors transaction and additional insight into the FUTURE I results, the agreement will enable Guidant to potentially accelerate its path to commercialization of an everolimus eluting stent outside of the United States," continued Mead.

Preliminary results presented from the FUTURE I first-in-man clinical trial utilizing everolimus demonstrated no restenosis in 11 patients receiving the drug eluting stent at six-month angiographic follow up. Additional results from the trial will be presented by Dr. Eberhard Grube of the Herzzentrum Siegburg in Germany, principal investigator of the study, at the American College of Cardiology conference taking place March 30 - April 2 in Chicago.

"The early FUTURE I clinical results were highly promising," said Dr. Grube. "The use of a bioabsorbable polymer to deliver drugs from a stent may offer unique clinical advantages. I look forward to analysis of data from the larger FUTURE II trial, which recently completed enrollment."

Guidant announced an agreement in principle to enter into this transaction earlier this year. Guidant and Biosensors previously received clearance for the transaction from the Federal Trade Commission under the United States Hart-Scott-Rodino Antitrust Improvements Act, and the agreement will take effect immediately.
Guidant Provides Update on SPIRIT FIRST Study

Guidant also updated the status of its everolimus eluting stent program. In addition to the first-in-man experience from FUTURE I and II now accessed via the Biosensors transaction, Guidant plans to initiate the SPIRIT FIRST trial, a dose-selection feasibility study with Guidant''s MULTI-LINK VISION(tm) Coronary Stent System and everolimus, upon successful completion and analysis of its current preclinical studies. Although analysis of three-month preclinical data of Guidant''s everolimus eluting stent revealed excellent results in the majority of animals, a higher-than-expected foreign body response was observed in a small subset. Guidant conducted a thorough investigation that yielded possible root causes, and the company has initiated additional animal studies to validate the findings.

"Due to our multiple stent platforms, multiple polymers, and promising early clinical and preclinical data, we remain confident in our 2005 everolimus eluting stent launch timing," commented Mead.
Webcast

Guidant will host a live webcast briefing Thursday, March 20, at 11:00 AM ET. Dana G. Mead, Jr., president, Vascular Intervention, will host the briefing. The webcast will be accessible through Guidant''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.

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 visitwww.guidant.com/newsroom.

This release includes forward-looking statements concerning the transaction and the company''s everolimus program. The statements are based on assumptions about many important factors, including clinical and regulatory developments, product development timelines and other factors identified on Exhibit 99.1 to the company''s most recent 10-K. Actual results may 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 for free at http://www.microsoft.com/windows/windowsmedia/en/download/.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.