Cambridge Heart Raises $8.4 Million in Equity Financing; Funds to be Used for Sales Force Expansion.

Business/Technology Editors

BEDFORD, Mass.--(BUSINESS WIRE)--Sept. 14, 2000

Cambridge Heart, Inc. (NASDAQ:CAMH) today announced that the Company raised $8.4 million of equity capital through a private placement primarily with a group of institutional investors led by Frontier Capital Management of Boston, Massachusetts.

Under the terms of the financing, Cambridge Heart, Inc. has received $8.4 million in signed subscriptions for the sale of 2,389,500 unregistered shares of Cambridge Heart Common Stock at the effective price of $3.50 per share, last nights closing price. The investors will also receive warrants to purchase 716,850 shares at an exercise price of $3.50. Cambridge Heart, Inc. expects the closing of the financing to occur by the end of business today. Cambridge Heart has agreed to 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 fund the ongoing expansion of its sales and clinical support organizations, promote the broad clinical adoption of its FDA cleared T-wave Alternans Test(TM), fund additional clinical studies, and fund its other operational needs.

"With the introduction of our new Heartwave(TM) system this quarter and our accelerating success with reimbursement we wish to aggressively pursue the planned expansion of our sales and field support organizations over the next 12 to 24 months," stated Jeffrey M. Arnold, Chairman, President and CEO of Cambridge Heart, Inc. "This financing provides us with capital needed to fund this expansion and to promote clinical use of our alternans technology in order to drive our top line growth."

About Cambridge Heart, Inc.

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, started in 1992, is based in Bedford, Mass., and is traded on the NASDAQ/NMS under the symbol CAMH. Cambridge Heart can be found on the World Wide Web at www.cambridgeheart.com.

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, 1999 and Report form 10-Q for the quarter ending June 30, 2000.