ABIOMED Announces Results for Fiscal Year Ended March 31, 2000; AbioCor Implantable Replacement Heart Progresses Toward Initial Clinical Trials.

Business/Technology Editors and Health/Medical Writers

DANVERS, Mass.--(BW HealthWire)--May 11, 2000

ABIOMED, Inc. (pronounced "AB-EE-O-MED"), (NASDAQ: ABMD) today released financial results for its fiscal year ended March 31, 2000 ("fiscal 2000").

Financial Results

Operating revenues for the full fiscal 2000 were $22,517,000 compared to $22,090,000 in the previous fiscal year. These results reflect increases in BVS product revenues and contract revenues of 2% and 3%, respectively. While the portion of product revenues derived from sales of BVS disposable blood pumps and related accessories and services increased by 20% during the fiscal year, the portion derived from sales of BVS console equipment declined. John F. Thero, ABIOMED's Senior VP and CFO, commented: "We believe this change reflects our decision early in the fiscal year to shift the focus of many of our sales representatives from new customer sales to increased support of existing customers, with the goal of increasing reorders of the higher margin consumable BVS pumps. In part as a result of this decision, product margins increased to 68% from 63% in the previous fiscal year."

ABIOMED also continued to invest in R&D during fiscal 2000 with R&D expenses totaling $15,633,000 compared to $13,450,000 in fiscal 1999. Development expenses for the AbioCor(TM) Implantable Replacement Heart represent 74% of this total. This increasing level of investment in the AbioCor program reflects the Company's intense efforts to prepare for initial human trials, scheduled to begin near the end of the current year, subject to regulatory approvals. The Company also increased its R&D investment in expanding the BVS product line. As a new BVS cannulae was released to the market during the fiscal year and a new BVS transport/backup drive console received FDA approval.

The Company reported a net loss of $10,454,000, or $1.19 per share, for fiscal 2000 compared to $6,712,000 or $0.78 per share in the previous year. This increase was primarily attributable to increased R&D expenditures, new selling and marketing programs for the BVS product line, and significant legal expenses associated with the successful defense of our rights to transcutaneous energy transmission technology used in the AbioCor.

During the fourth fiscal quarter, the Company completed a public offering of 1,500,000 shares of common stock generating proceeds, net of expenses, of $95,400,000.

AbioCor Program Update

The AbioCor Implantable Replacement Heart is a medical device intended to replace a patient's diseased heart and take over completely its circulatory function. It is now in an advanced stage of pre-clinical readiness testing. Key milestones achieved during fiscal 2000 include:

1. Final conversion of the AbioCor design from the configuration used for pre-clinical testing to the clinical configuration to be used in the initial human trials.

2. Ongoing production and manufacturing scale-up to produce quantities of clinically configured systems for pre-clinical and clinical tests.

3. Readiness Training of the sites selected for initial clinical trial sites in the United States: two of the five surgical teams have substantially demonstrated readiness. Agreement reached with the first international medical center, with pre-clinical tests now underway.

4. Extensive system and component level testing of the clinically-configured AbioCor continued to generate data on performance, durability and reliability to support the final application to be submitted to regulatory authorities for initiation of human trials.

5. Primary pre-clinical testing centers certified to be in compliance with regulatory requirements of Good Laboratory Practices.

6. Submissions to the regulatory authorities of key elements of the Company's proposed plan for initial human trials, including test protocols and protocols for biocompatibility evaluation, with the goal of completing our Investigational Device Exemption submission promptly upon completion of all pre-clinical tests.

Dr. David M. Lederman, CEO, stated: "fiscal 2000 was a very important year in the growth of our Company. In particular, in fiscal 2000, we made significant progress in the development and preparation for initial clinical trials of the world's first fully implantable replacement heart. We are committed to making the AbioCor a clinical reality as soon as possible. We are not aware of any technical issues that should prevent us from entering clinical trials. We are very excited to be so close to the day when we can begin to offer a life-saving solution to so many patients who today have no medical alternative. The $95.4 million financing that we completed at the end of fiscal 2000, and the new and expanded 80,000 square foot facility that we began to move into during fiscal 2000, give us the resources and environment to aggressively move forward with this important product."

Commenting on the BVS product line, Dr. Lederman added: "the BVS continues to be an excellent life-saving and profitable product line. These products, and the new developments associated with it, are of strategic importance to ABIOMED and to the eventual clinical introduction of the AbioCor. BVS revenues shifted in fiscal 2000 from a heavy dependence on sales to new customers to revenues derived primarily from reorders by existing customers. This product line has helped the Company establish important relationships with over 500 medical centers worldwide, including the medical centers that will use the AbioCor when approved. We plan to continue our investment in growing the BVS business through expanded sales and marketing programs as well as new product components and product line enhancements."

About ABIOMED

Based in Danvers, Massachusetts, ABIOMED, Inc. develops, manufactures and markets innovative cardiovascular products and is a leader in the research and development of advanced heart assist and replacement systems. The Company's BVS-5000(R) is the most widely used FDA-approved cardiac assist device for all patients with reversible heart failure. The Company's AbioCor Implantable Replacement Heart is in an advanced stage of development and intended to extend the lives of patients who would otherwise die from heart failure.

This Release contains forward-looking statements, including statements regarding the anticipated timing of the Company's development and clinical trials of its AbioCor Implantable Replacement Heart, BVS revenue growth and the timing and ability to introduce new products and product line extensions. The Company's actual results may differ materially from those anticipated in these forward-looking statements based upon a number of factors, including uncertainties associated with development, testing and related regulatory approvals, anticipated future losses, complex manufacturing, high quality requirements, dependence on limited sources of supply, competition, technological change, government regulation, future capital needs and uncertainty of additional financing and other risks detailed in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this Release. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances that occur after the date of this Release or to reflect the occurrence of unanticipated events.

                             ABIOMED, Inc.
                         FINANCIAL HIGHLIGHTS

                    CONSOLIDATED OPERATING RESULTS

(In thousands, except        Three Months Ended    Twelve Months Ended
 per share data)                 (unaudited)

                             March 31,  March 31,  March 31, March 31,
                               2000       1999       2000       1999

Product Revenues             $ 5,567    $ 5,716    $18,377    $18,079
Contract Revenues                487        476      4,140      4,011
Total Operating Revenues       6,054      6,192     22,517     22,090

Cost of Products Sold          1,799      2,071      5,882      6,772
R&D expenses                   4,195      2,817     15,633     13,450
S,G&A expenses                 3,628      2,932     12,562      9,772
Total Operating Expenses       9,622      7,820     34,077     29,994

Interest income and other        498        247      1,106      1,192

Net Loss                    $ (3,070)  $ (1,381)  $(10,454)  $ (6,712)

Basic and Diluted           $  (0.34)  $  (0.16)  $  (1.19)  $  (0.78)
Net Loss per Share

Weighted Average Number of
Common Shares Outstanding      9,089      8,644      8,789      8,619


               CONDENSED CONSOLIDATED BALANCE SHEET DATA

                                  3/31/00     3/31/99       3/31/98

Cash and Marketable Securities   $106,384     $ 18,181     $ 26,398
Current Assets                   $117,147     $ 27,850     $ 34,290
Total Assets                     $121,788     $ 32,982     $ 38,755
Current Liabilities              $  8,149     $  5,705     $  5,006
Long-term Liabilities            $    715     $    205     $     64
Stockholders' Equity             $112,924     $ 27,072     $ 33,018