Angeion to grant Medtronic non-exclusive license to its patent portfolio.

Angeion Corporation (Minneapolis, MN; 612-315-2000) announced that it will grant to Medtronic, Inc. (Minneapolis, MN; 612-514-4971) a non-exclusive license to all of Angeion's patents and patent applications for cardiac stimulation devices. Angeion will also sell to Medtronic its unfiled patent disclosures for cardiac stimulation devices. In exchange, Angeion will receive $9 million in cash from Medtronic. Upon closing of the transaction, Angeion and Medtronic will enter into a mutual release for any past infringement claims. Closing of the transaction is subject to the approval of Angeion shareholders and bondholders. Angeion plans to hold a meeting of shareholders later this year to vote on the agreement.

"We are pleased that Medtronic sees value in our patent portfolio and that we have been able to generate additional cash," said James B. Hickey, Jr., Angeion's president and CEO. "We continue to explore new business opportunities to increase value for our shareholders and bondholders. This transaction will give us more flexibility." Angeion announced in April 1999 a major restructuring to refocus its business and limit its participation in the ICD marketplace. The company will net approximately $8.5 million from this agreement.

Medtronic is the world's leading medical technology company, specializing in interventional and implantable therapies that restore health, extend life and alleviate pain. Angeion currently manufactures and markets implantable cardioverter defibrillator systems for the tachyarrhythmia (rapid irregular heartbeats) market.