May 27, 2004
Guidant Reaffirms Previous Sales and Earnings Guidance on Mid-Quarter Call

Indianapolis, Ind. - Guidant Corporation (NYSE: GDT) today reaffirmed on the company''s mid-quarter conference call its previously stated guidance for the second quarter - sales in the range of $910 - $950 million and adjusted earnings per share of $0.54 to $0.60.

Related GAAP earnings per share guidance for the second quarter is $0.52 - $0.58 per share, which includes the impact of in-process research and development charges (IPRD) of $0.02 per share for the previously announced purchase of the remaining stake in Bioabsorbable Vascular Solutions.

The company currently projects second quarter sales and earnings per share will be toward the mid-point of these stated ranges.

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 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. Based on existing business development arrangements, the company anticipates that it may record charges to earnings in addition to the $0.10 per share incurred to date of up to $0.12 - $0.18 per share ($40 - $60 million after tax) of IPRD special items in 2004 based primarily on the potential attainment of various milestones in the development of drug eluting stents during the year. 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. 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.

Guidant Corporation is a world leader in the treatment of cardiac and vascular disease. The company pioneers lifesaving technology, giving an opportunity for better life today to millions of cardiac and vascular patients worldwide. Driven by a strong entrepreneurial culture of 12,000 employees, Guidant 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 financial results. The statements are based on assumptions about many important factors, including market trends and competition, including growth rates for defibrillator sales and penetration rates for drug eluting stents, economic factors, including exchange rates, and additional factors listed on exhibit 99 to the company's 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.