Cardiac Control Systems Inc. and Electro-Catheter Corp. Announce Their Stockholders Vote to Merge the Two Companies.

PALM COAST, Fla.--(BUSINESS WIRE)--Nov. 18, 1998--Cardiac Control Systems Inc. (OTC BB:CDCS) and Electro-Catheter Corp. (OTC BB:ECTH) jointly announced Wednesday that at their respective special shareholder meetings held Monday, the stockholders of both companies voted in favor of merging the two companies.

A new corporation called Catheter Technology Group Inc. ("CTG") has been formed, and upon completion of the merger will have Cardiac Control Systems Inc. ("CCS") and Electro-Catheter Corp. ("Elecath") as direct, wholly owned subsidiaries. It is the intent of CTG's management to attempt to further consolidate additional catheter-related companies and product lines into CTG subsequent to the merger.

The stockholders of CCS also voted in favor of (1) a one for five reverse stock split and (2) a restructuring of CCS into a subsidiary of the newly formed CTG corporation. Upon implementation of this restructuring, each share of CCS common stock after adjustment for the reverse split will be converted to one share of CTG common stock. Subsequently, as part of the merger, the Elecath shareholders will receive one-fifth of a share of CTG common stock for each share of their common stock; thereby making the exchange of CCS and Elecath shares for CTG shares equivalent.

The reverse stock split, restructuring and the merger between the two companies are subject to a number of conditions, including securing a minimum of $4.0 million in new financing. The consummation of the merger and other approved actions is expected to occur shortly after the satisfaction of all conditions.

Cardiac Control Systems Inc. designs, develops, manufactures, and markets a broad line of implantable cardiac pacemakers, implantable and temporary pacemaker leads and related products. The company also manufactures the first single lead for A-V synchronous pacing, which can replace the conventional two lead system for a substantial portion of the market, enhancing patient care and providing faster, easier and more cost effective implantation.

Electro-Catheter Corp. designs, develops manufactures and markets a broad line of catheters and catheter related products utilized in connection with diagnosis and treatment of illnesses of the heart and circulatory systems.