Cardiac Pathways Reports Results for First Fiscal Quarter.

SUNNYVALE, Calif.--(BW HealthWire)--Oct. 27, 1998--Cardiac Pathways Corporation (NASDAQ: CPWY), today reported results for its first fiscal quarter ended September 30, 1998.

Sales for the first quarter of fiscal 1999 were $1.1 million, compared to $562,000 for the first quarter of fiscal 1998. The company recorded a net loss of $4.6 million, or $0.47 per share, for the first quarter of fiscal 1999, compared to a net loss of $4.1 million, or $0.43 per share, for the first quarter of fiscal 1998. Sales for the fourth quarter of fiscal 1998 were $760,000.

The net increase in sales in the first quarter of fiscal 1999 as compared to the same period a year ago primarily resulted from increased sales of Trio/Ensemble(R) and Radii(R) catheters and the commencement of Chilli(R) cooled ablation catheter sales in certain international markets. The increase in the net loss for the first quarter of fiscal 1999 compared to the same period a year ago resulted primarily from increased costs associated with the expansion of manufacturing capacity and increased selling, general and administrative costs. These costs were offset in part by the increased sales noted above. In addition, the company had decreased interest income.

Commenting on the quarter's results, Cardiac Pathways Corporation president and chief executive officer William Starling, said: "We are very pleased with this quarter's revenues. This revenue is almost entirely international and is a result of continued success in the Japanese market, as well as the introduction of our products by new distributors in Germany and Spain."

Cardiac Pathways Corporation designs, develops and manufactures minimally invasive systems to diagnose and treat cardiac tachyarrhythmias (abnormally rapid heart rhythms). The company is developing products designed to provide integrated system solutions for the improved diagnosis and treatment of ventricular tachycardia and atrial fibrillation, two of the most serious and prevalent types of abnormally rapid heart rhythms.

Summaries of certain clinical trial information are available on the Company's World Wide Web page at www.cardiac.com. The information contained on such web page is as of October 26, 1998, and will be accessible as of 7:00 a.m. Pacific Standard Time on October 27, 1998. The company undertakes no obligation to update such information at any time in the future. Investors should be advised that progress to date on the company's clinical trials is not necessarily indicative of the ultimate outcome of such studies and that the failure of the company to revise the information contained on the company's web page does not imply that the results of such studies are consistent with or more favorable than those reported therein.

This release contains certain forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including the progress of the company's clinical trials, actions relating to regulatory matters, the costs and timing of expansion of product development, manufacturing, marketing and sales activities, the extent to which the company's products gain market acceptance, and competitive developments. -0-

                                             Three months ended
                                                September 30,
                                             1998            1997
                                                  (unaudited)

Net sales                               $ 1,137,406     $   561,787
Cost of goods sold                        1,069,440         649,926
 Gross margin (deficit)                      67,966         (88,139)

Operating expenses:
 Research and development                 3,419,727       3,496,614
 Selling, general and administrative      1,402,337         863,995
    Total operating expenses              4,822,064       4,360,609
Loss from operations                     (4,754,098)     (4,448,748)

Other income (expense):
 Interest income                            293,492         557,441
 Interest expense                          (174,430)       (187,338)
 Other, net                                  12,115          11,894
    Total other income, net                 131,177         381,997

Net loss                                $(4,622,921)    $(4,066,751)

Net loss per share                      ($     0.47)    ($     0.43)

Shares used in computing
   net loss per share                     9,845,000       9,528,000

                   Consolidated Balance Sheet Data

                                       September 30,          June 30,
                                           1998                1998

Cash and short-term investments       $ 19,091,144        $ 24,517,377
Working capital                         16,992,207          22,350,838
Total assets                            26,331,233          30,934,577
Long-term obligations                    8,655,623           9,247,781
Stockholders' equity                    13,148,629          17,485,018

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