Cardiac Control Systems Inc. announces third quarter revenue and profit growth and the addition of new executive vice president.

PALM COAST, Fla.--(BUSINESS WIRE)--Feb. 16, 1996--Cardiac Control Systems Inc. (BB:CDCS) announced that its performance for the third fiscal quarter reflects a substantial increase in revenue and profits, and that it has added a new executive vice president with broad experience in finance and operations.

Total revenues for the third quarter of fiscal 1996, ended Dec. 31, 1995, were $2,149,307, approximately 59% ahead of third quarter fiscal 1995 revenues of $1,352,217, and 19% ahead of second quarter fiscal 1996 revenues of $1,801,749. Net sales accounted for $280,015 of the revenue increase, showing a 24% growth, and royalty income from Intermedics Inc. accounted for the remainder of the growth. Year to date total revenues are $5,724,859, or 35% ahead of last year.

CCS also reported net income for the quarter of $75,104. This reflects a $70,233 increase over the $4,871 net income reported for the equivalent quarter last fiscal year, and an $81,012 increase over the $5,908 loss reported last quarter. This improvement in net income is a direct result of the growth in total revenue, and further gains in operating efficiencies. Gross margin for example rose 2 points over this past quarter to 55%.

"The revenue and income growth is a good indication of the progress that CCS is making," reported Alan J. Rabin, president. "It is important to recognize that revenue is growing in spite of the fact that we are still unable to ship finished product to Europe. Therefore, domestic and Intermedics sales are growing at a rate that exceeds European revenue temporarily lost. Further, our income is growing despite substantial investment in research & development, clinical studies and pursuit of ISO approval for European sales. Investment in R & D and sales and marketing has increased approximately 120% over last year. In spite of this, the company has been profitable or break even on a net income basis during five of the last six quarters."

CCS also announced the addition of W. Alan Walton as executive vice president of Operations. Walton is a Fellow of the Institute of Chartered Accountants in England and Wales. Most recently, he was engaged as a financial and operations consultant with Biosight Inc. of Orchard Park, N.Y., a firm specializing in helping health care businesses enhance their performance. In this capacity he has been actively involved in evaluating the systems and operations at CCS. Prior to his experience with Biosight Inc., he spent 19 years in senior Financial and Systems Management positions with Dunlop Holdings plc in the United Kingdom; including a position as general manager, Group Information Systems, with responsibility for Dunlop's global computing and communications. He has extensive experience in industrial manufacturing and engineering, and was educated at Durham University, England. "Mr. Walton will oversee all financial, operational and manufacturing systems of CCS, with specific responsibility to implement a more sophisticated and efficient MRP system, and improve production efficiency," stated Alan Rabin. "Alan added substantial experience and expertise to our management team, and we expect that through his efforts, we will be able to dramatically reduce our costs and improve our cash management."

Cardiac Control Systems Inc. designs, develops, manufactures, markets and sells a broad line of implantable cardiac pacemakers, implantable pacemaker leads and related products. The company also manufactures the only FDA approved single lead for A-V synchronous pacing, which replaces the conventional two lead system for a substantial portion of the market. It has been proven to significantly enhance patient care and provide for faster, easier and more cost effective implantation. The growing world wide market for pacemakers is currently estimated at $2 billion.

Cardiac Control Systems Inc. is located at 3 Commerce Blvd., Palm Coast, FL 32164. The telephone number is 904/445-5450. -0-

                    Cardiac Control Systems Inc.

                        Three Months Ended        Nine Months Ended
Summary of Operations        Dec. 31,                  Dec. 31,
                        1995         1994         1995         1994
                        ----         ----         ----         ----
Revenue
 Net sales          $1,426,507   $1,146,492   $4,013,409   $3,590,017
 Royalty income        722,800      205,725    1,711,450      654,875

   Total revenue     2,149,307    1,352,217    5,724,859    4,244,892

Costs and expenses
 Cost of products
  sold                 643,447      533,823    1,868,163    1,863,883
 General and
  administrative
  expenses             498,216      409,700    1,339,232    1,040,478
 Selling and
  marketing expenses   524,590      236,749    1,535,272      710,472
 Engineering,
  research and
  development
  expenses             215,925       90,061      679,412      320,028

   Total costs and
    expenses         1,882,178    1,270,333    5,422,079    3,934,861

Operating income       267,129       81,884      302,780      310,031
Other income
 (expenses)           (192,025)     (77,013)    (390,962)   (197,174)

Net income (loss)   $   75,104   $    4,871   $  (88,182)  $  112,857

Net income (loss)
 per common share         $.06         $.00        $(.07)        $.09

Average number of
 common shares
 outstanding         1,363,142    1,324,538    1,349,769    1,246,718

CONTACT: Cardiac Control Systems Inc., Palm Coast

Alan J. Rabin, 904/445-5450