May 24, 2004
Guidant Makes Equity Investment in Heart Valve Repair Company

Evalve, Inc.''s Innovative Technology Designed to Offer New Treatment Option for Debilitating Condition

Indianapolis, Ind. and Santa Clara, Calif. - Guidant Corporation (NYSE: GDT) today announced that the company has made an initial $15 million equity investment in Evalve, Inc., a Redwood City, Calif., developer of catheter-based technologies to repair heart valves. Evalve''s efforts are focused on reducing the risk, trauma and costs associated with surgical treatment of mitral regurgitation, a progressive disorder in which blood leaks backward into the left atrium with each heart beat, causing the heart to work harder and potentially leading to heart failure. Surgical treatment of the condition requires the surgeon to open the patient''s chest and arrest the beating of the heart.

"Guidant''s investment in Evalve reflects our commitment to patients with heart failure and to advancing new, minimally invasive technologies that offer clear benefits to patients," said Guido J. Neels, chief operating officer, Guidant Corporation. "We believe there is tremendous opportunity for this innovative medical technology, which is synergistic with many of Guidant''s programs and capabilities."

Evalve''s investigational technology may one day prevent, or at least delay, the need for open-heart surgery for many patients with mitral regurgitation, and could potentially provide a future treatment option for those patients who are too sick for surgery. Clinical experience from the company''s feasibility study has shown that hospital stay is typically one or two nights, versus five to seven for open-heart surgery; patients return to normal activity in about a week. Unlike traditional surgical repair, there is no need to stop the heart from beating or to place the patient on a heart-lung machine.

Four million Americans suffer from mitral regurgitation. Patients with severe mitral regurgitation eventually become so weakened by the condition that they require open-heart surgery to replace or repair the mitral valve. Each year, about 250,000 Americans develop severe mitral regurgitation, and approximately 50,000 undergo open-heart surgery for mitral valve repair or replacement. In addition, large populations of patients who have heart failure and mitral regurgitation remain untreated because they are too sick for surgery.

During the procedure, a catheter is inserted into the femoral vein in the groin and guided to the heart. A tiny metallic clip is fed through the catheter to the heart''s mitral valve, and secured to the valve leaflets, thereby reducing the back flow of blood.

Under the terms of the agreement, Guidant will make additional payments based upon the achievement of certain milestones. The company also will hold a seat on Evalve''s board of directors.

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.

Evalve, Inc. (www.evalveinc.com) is a leader in innovative devices for the endovascular repair of cardiac valves. The company''s initial products are intended to reduce the risks, trauma and costs associated with current open, arrested heart surgical options. Evalve is currently conducting a clinical trial in the U.S. of its mitral valve repair system under an Investigational Device Exemption. Based in Redwood City, California, privately-held Evalve was founded in 1999, and was the first business launched by The Foundry (www.the-foundry.com), a medical device incubator. The company has been funded by New Enterprise Associates, Delphi Ventures, St. Paul Venture Capital, Three Arch Partners, Cutlass Capital, ABS Ventures, and now Guidant Corporation.

This release includes forward-looking statements concerning the venture, related milestones and payments, and development of the therapy. The statements are based on assumptions about many important factors, including continuing clinical and regulatory developments, product development timelines and other factors identified on Exhibit 99 to the company''s most recent 10-K. Actual results may differ materially. The company does not undertake to update its forward-looking statements.