CRYOLIFE REPORTS RECORD REVENUES FOR 1999 1ST QUARTER.

CryoLife, Inc. (NYSE:CRY), Atlanta, Ga., a leader in the development and commercialization of living human tissue implantable devices and a manufacturer and distributor of stentless heart valves and surgical adhesives, has announced revenues and earnings for the quarter ended March 31, 1999. In addition, the company also confirmed that its diversification strategy was on track, strengthening product and service mix and helping to reduce the company's dependence on any one line of business.

Revenues for the first quarter of 1999 were $16.3 million, a first quarter record and an increase of 12% as compared with $14.6 million in the same period in 1998. Net income for the quarter ended March 31, 1999 was $1.4 million compared with $1.2 million in the first quarter of 1998. Earnings per common share for first quarter 1999 were $0.11 basic and diluted on 12.5 and 12.7 million shares, respectively, versus $0.12 basic and diluted on 9.7 and 10 million shares, respectively, in the same period in 1998.

Steven G. Anderson, president and CEO of CryoLife, said, "Net income was affected by a decline in allograft heart valve preservation revenues, principally in pulmonary valves, when compared with the first quarter of last year. We were very pleased with the 39% increase in vascular tissue preservation revenues and the 33% increase in orthopaedic tissue preservation revenues compared with the first quarter a year ago, which we believe confirms the fact that our diversification strategy is working."

The company stated that vascular tissue preservation accounted for 30% of the company's revenues, orthopaedic tissue preservation generated 15% of revenues, and human heart valve preservation revenues accounted for 42%. Also, the company indicated that it believes that the early success and acceptance of its BioGlue(R) surgical adhesive will enhance its diversification strategy.

On April 19th, the company announced a lifetime limited warranty on allograft heart valves for freedom from valve-related endocarditis and thromboembolic events. In addition, on April 21st, the company's BioGlue surgical adhesive was the subject of a paper presented by Dr. Steven R. Gundry of Loma Linda Medical Center at the 79th annual meeting of the American Association of Thoracic Surgeons in New Orleans. The paper highlighted the results of experimental cardiac bypass surgeries to reconnect saphenous vein grafts and internal mammary arteries to goat hearts using a sutureless technique and BioGlue surgical adhesive. Subsequent to this experimental surgery, the connected vessels are open and appear normal at 12 months.

Founded in 1984, CryoLife, Inc. is the leader in the development and commercialization of living human tissue implantable devices for use in cardiovascular, vascular and orthopaedic surgeries throughout the United States and Canada. The company's BioGlue(R) surgical adhesive, CE marked in the European Union for use in vascular and pulmonary sealing and repair, is distributed throughout Europe. The company also manufactures CryoLife-O'Brien(R) and CryoLife-Ross(TM) stentless porcine heart valves which are distributed within the European Community.

For more information, call 800/438-8285.