Cambridge Heart Raises $5.1 Million of Equity Financing.

BEDFORD, Mass.--(BW HealthWire)--Oct. 6, 1999--

Cambridge Heart, Inc. (NASDAQ:CAMH) today announced that the Company raised $5.1 million of equity capital through a private placement primarily with a group of institutional investors, at a 19% premium to last night's closing price.

Under the terms of the financing, Cambridge Heart, Inc. received $ 5.1 million in signed subscriptions from the sale of 1,452,060 unregistered common shares of Cambridge Heart Common Stock. The investors also receive 291,428 warrants at an exercise price of $3.50. Cambridge Heart will file with the Securities and Exchange Commission a registration statement for all shares of Common Stock issued and the stock underlying all warrants. The Company intends to use the proceeds of the offering to promote the broad clinical adoption of its already FDA cleared T-wave Alternans Test(TM), fund additional clinical studies, pursue its third-party payer reimbursement strategy, and fund its other operational needs.

In other news, Cambridge Heart reported that its non-invasive T-wave Alternans Test, which predicts ventricular arrhythmias and sudden cardiac death in patients at risk, can now be performed with an exercise treadmill, the standard exercise method used for stress testing in the United States. Previously Cambridge Heart recommended that the test only be performed with a bicycle ergometer.

"This development is significant for the U.S. cardiac diagnostic market," said Jeffrey M. Arnold, Cambridge Heart President, Chairman, and CEO. "There has been great demand for treadmill capability for our T-Wave Alternans Test, and the lack of this feature has inhibited the rate of clinical acceptance in the U.S. With this capability we believe we have addressed a major requirement for increasing clinical acceptance, and we are delighted to be able to offer it to our customers."

Mr. Arnold continued, "Cambridge Heart is actively pursuing reimbursement for our T-Wave Alternans Test on both a local and national level. With this financing, the availability of a treadmill version of our Alternans Test, and the progress we expect to make in the reimbursement arena, we are now poised to aggressively market our technology to the medical community."

About Cambridge Heart

Cambridge Heart is engaged in the research, development, and commercialization of products for the non-invasive diagnosis of cardiac disease. Using innovative technologies, the Company is addressing such key problems in cardiac diagnosis as the identification of those at risk of sudden cardiac arrest, the early detection of coronary artery disease, and the prompt and accurate diagnosis of heart attack. The Company's first product, the Alternans Test, was cleared by the U. S. Food and Drug Administration on April 13, 1999, as the first non-invasive test cleared to identify patients at risk of arrhythmia, the cause of sudden cardiac arrest. The Company currently markets its CH 2000 stress test system and proprietary, disposable Alternans Sensors in the U.S., Japan, and Europe.

Statements made in this press release that are not historical facts include forward-looking statements that involve risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include uncertainties associated with regulatory approval processes and other factors that are included in Cambridge Heart's Annual Report on Form 10-K for the year ending December 31, 1998 and Report form 10-Q for the quarter ending June 30, 1999.