Feb 17, 2004
Guidant Increases Quarterly Dividend

Company Announces Share Repurchase Program

INDIANAPOLIS - Guidant Corporation (NYSE: GDT), a world leader in the treatment of cardiac and vascular disease, today announced that the company''s board of directors increased the quarterly dividend by 25 percent, raising the quarterly dividend to $0.10 per share from $0.08 per share on outstanding common stock. The dividend is payable March 15, 2004 to all shareholders of record on March 1, 2004.

Guidant''s board of directors also approved today a plan to use proceeds from stock option exercises over the next year to buy back shares to help offset dilution with the company''s equity compensation programs. Use of option proceeds will be neutral to Guidant''s overall debt position. The repurchases will occur at such times and prices as management determines, and may be through open market and/or privately negotiated transactions. The company estimates that this could be as much as $250 million this year.

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 share repurchases. The statements are based on assumptions about many important factors, including the availability of funds, particularly as they flow from option exercise proceeds; market trends, including the company's share price; and the additional factors listed on exhibit 99 to Guidant's most recent 10-Q. The company does not undertake to update its forward-looking statements.