Advanced Neuromodulation Systems Withdraws $22.00 Per Share Cyberonics Proposal.

DALLAS -- Advanced Neuromodulation Systems, Inc. (ANS) (NASDAQ:ANSI) announced today that it has withdrawn its proposal to discuss a combination with Cyberonics, Inc. (NASDAQ:CYBX) in which ANS was prepared to offer $22.00 per share for the Cyberonics stock that it does not already own. ANS acquired 3.5 million shares, or approximately 14.7%, of Cyberonics outstanding stock in mid-August.

"We are disappointed that the Cyberonics Board of Directors has chosen to reject our invitation to discuss a business combination. For the many reasons we carefully outlined in our September 14 letter, we continue to think that the business case for a combination is compelling," said Chris Chavez, President and Chief Executive Officer of ANS.

"Since we made our proposal, however, Cyberonics has publicly stated that it intends to 'gain clarity and certainty in a revised depression regulatory plan and timetable,' and has taken steps to try to persuade the FDA to reverse its decision in its 'non-approvable letter' by submitting additional data through a PMA-S Amendment. Cyberonics has said that it could take 120-180 days or more to obtain an FDA decision on the Amendment. Given the amount of time that could transpire before Cyberonics attains the clarity and certainty it seeks, its Board's decision not to discuss a combination, and our judgment that it does not make good business sense to try to force the issue, we have decided to withdraw our proposal at this time," said Mr. Chavez.

Mr. Chavez concluded, "ANS has multiple opportunities for sustained growth independent of a merger with Cyberonics. At this time, we will manage our investment in Cyberonics as a shareholder, and we genuinely wish Cyberonics the best as it works toward fulfilling its mission."

About Advanced Neuromodulation Systems

Advanced Neuromodulation Systems designs, develops, manufactures and markets implantable systems used to manage chronic intractable pain and other disorders of the central nervous system. Additional information is available at www.ans-medical.com.

"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995:

Statements contained in this document that are not based on historical facts are "forward-looking statements." Terms such as "plan," "should," "would," "anticipate," "believe," "intend," "estimate," "expect," "predict," "scheduled," "new market," "potential market applications" and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to investment risks, including the risk of adverse changes in the value or marketability of Cyberonics securities that the Company owns; Cyberonics' growth potential and future prospects; competition from and the launch of new competitive products by Medtronic, Advanced Bionics/Boston Scientific or others, as well as other market factors, that could impede growth in or reduce sales of the Company's IPG and RF systems, which could adversely affect revenues and profitability; continued market acceptance of the Genesis(R) IPG and GenesisXP(TM) IPG;; continued market acceptance of the Renew(R) system; patient or physician selection of less invasive or less expensive alternatives; adverse changes in coverage or reimbursement amounts by Medicare, Medicaid, private insurers, managed care organizations or workers' comp programs; intellectual property protection and potential infringement issues; the cost, uncertainty and other risks inherent in the intellectual property litigation against Advanced Bionics; obtaining necessary government approvals for the Company's rechargeable IPGs and other new products or applications and maintaining compliance with FDA product and manufacturing requirements; product liability; reliance on single suppliers for certain components; completion of research and development projects in an efficient and timely manner; the satisfactory completion of clinical trials and/or market tests prior to the introduction of new products; successful integration of acquired businesses, products and technologies; the cost, uncertainty and other risks inherent in patent and intellectual property litigation; international trade risks; and other risks detailed from time to time in the Company's SEC filings. Consequently, if such management assumptions prove to be incorrect or such risks or uncertainties materialize, anticipated results could differ materially from those forecast in forward-looking statements. In addition, there can be no assurance as to whether or when the Company might sell or otherwise dispose of all or part of any of the securities of Cyberonics that it beneficially owns. In reaching any decision as to its course of action, including without limitation, its willingness to propose or consummate a combination, the Company currently expects that it would take into consideration a variety of factors, including, but not limited to, Cyberonics' revenue growth potential, cost structure, business and prospects, other developments concerning Cyberonics and its business generally, other business opportunities available to the Company and changes in law and government regulations, general economic conditions and money and stock market conditions, including the market price of the securities of Cyberonics. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.