Cardiac Pathways Reports Results for Fourth Fiscal Quarter and Full Year.

SUNNYVALE, Calif.--(BW HealthWire)--July 30, 1998--Cardiac Pathways Corporation (NASDAQ:CPWY), today reported results for its fourth fiscal quarter and year ended June 30, 1998.

Sales for the fourth quarter of fiscal 1998 were $760,000, compared to $226,000 for the fourth quarter of fiscal 1997. The company recorded a net loss of $4.5 million, or $0.46 per share, for the fourth quarter of fiscal 1998, compared to a net loss of $3.9 million, or $0.41 per share, for the fourth quarter of fiscal 1997. Sales for the third quarter of fiscal 1998 were $738,000.

The net increase in sales in the fourth quarter of fiscal 1998 as compared to the same period a year ago primarily resulted from increased sales of Radii and Trio/Ensemble catheters and the commencement of sales of Arrhythmia Mapping Systems. The increase in the net loss for the fourth quarter of fiscal 1998 compared to the same period a year ago resulted primarily from increased product development, clinical research, and selling, general and administrative costs. In addition, interest income decreased from the fourth quarter of fiscal 1997 by $226,000.

Sales for the year ended June 30, 1998, were $2.4 million, compared to $2.4 million for fiscal 1997. The company recorded a net loss of $17.5 million for the year ended June 30, 1998, or $1.81 per share, compared to a net loss of $12.9 million, or $1.37 per share for the year ended June 30, 1997.

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 current as of July 29, 1998, and will be available to access as of 7:00 a.m. Pacific Daylight Time on July 30, 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-

                     CARDIAC PATHWAYS CORPORATION
               Consolidated Statement of Operations Data

                                       Three months ended
                                             June 30,
                                        1998         1997
                                           (unaudited)

Net sales                            $760,365        $225,505
Cost of goods sold                    764,423         547,242
  Gross margin (deficit)               (4,058)       (321,737)
Operating expenses:
  Research and development          3,665,471       3,253,505
  Selling, general
   and administrative               1,091,378         831,982
    Total operating expenses        4,756,849       4,085,487
Loss from operations               (4,760,907)     (4,407,224)
Other income (expense):
  Interest income                     374,790         600,642
  Interest expense                   (139,842)       (131,656)
  Other, net                           14,074          12,053
    Total other income, net           249,022         481,039
Net loss                          $(4,511,885)    $(3,926,185)
Net loss per share                     ($0.46)         ($0.41)
Shares used in computing
  net loss per share                9,780,000       9,496,000

                                            Year ended
                                             June 30,
                                        1998         1997

Net sales                          $2,419,816      $2,408,773
Cost of goods sold                  2,827,789       2,507,375
  Gross margin (deficit)             (407,973)        (98,602)
Operating expenses:
  Research and development         14,353,393      11,756,260
  Selling, general
  and administrative                4,091,637       3,147,311
    Total operating expense        18,445,030      14,903,571
Loss from operations              (18,853,003)    (15,002,173)
Other income (expense):
  Interest income                   1,857,981       2,624,055
  Interest expense                   (578,931)       (523,038)
  Other, net                           75,156          35,562
    Total other income, net         1,354,206       2,136,579
Net loss                         $(17,498,797)   $(12,865,594)
Net loss per share                     ($1.81)         ($1.37)
Shares used in computing
 net loss per share                 9,648,000       9,379,000



                    Consolidated Balance Sheet Data

                                     June 30,       June 30,
                                      1998           1997

Cash and short-term investments   $24,517,377     $41,566,960
Working capital                    22,350,838      39,511,272
Total assets                       30,909,577      46,655,254
Long-term obligations               9,247,781       9,076,686
Stockholders' equity               17,460,018      33,992,209

CONTACT: Cardiac Pathways Corporation

David W. Gryska, 408/737-0505