Cardiac Science Agrees to Acquire Survivalink Corp.; Merger Intended to Provide Foothold into the Rapidly Growing AED Market.

Business Editors and Health/Medical Writers

BIOWIRE2K

IRVINE, Calif.--(BW HealthWire)--Feb. 14, 2001

Cardiac Science Inc. (Nasdaq:DFIB) announced today that it has agreed to acquire Survivalink Corp., a privately held Minneapolis-based company that is a leading provider of Automated External Defibrillators (AEDs).

As consideration for the transaction, Cardiac Science will pay $35.5 million in cash and $35.5 million in restricted common stock to Survivalink shareholders for a total purchase price of $71 million. The acquisition is subject to regulatory approval, as well as approvals by the shareholders of Cardiac Science and Survivalink, and is expected to close in June 2001.

Designed to provide a life-saving defibrillation shock that restores a normal heart rhythm to a cardiac arrest victim, AEDs are commonly used by emergency first responders including firefighters, police officers and EMT personnel. AEDs are also being widely deployed for use by non-medical persons in airplanes, airports, public facilities, shopping malls and commercial office buildings.

According to a recent market analysis published by Frost & Sullivan, it is estimated that more than 50,000 AED units were purchased worldwide in 2000. In addition, Frost & Sullivan estimate that the AED market will expand to more than 150,000 units a year by 2004, accounting for more than $400 million in annual revenue.

"The Survivalink acquisition is a key component in our strategy to position Cardiac Science as a significant player in the external defibrillation business and to extend our reach beyond the hospital market. The Survivalink AED product and 21 person U.S. direct sales team will provide us with a strong foothold in the rapidly growing AED market," said Raymond W. Cohen, president and chief executive officer.

"Our goal is to aggressively grow our top-line revenue, create widespread adoption and utilization of our core technology and reach profitability in 2002.

"In addition to acquiring patient monitoring and defibrillator companies, we anticipate executing strategic partnerships and licensing arrangements that facilitate the integration of our fully automatic defibrillation technology into hospital defibrillators and standard patient monitors that are widely used in hospitals throughout the world."

Cardiac Science intends to integrate its proprietary monitoring and automatic detection technology into the Survivalink's FirstSave AED. It is anticipated that this unique capability will provide Cardiac Science with a competitive marketing advantage and further accelerate the adoption rate of Cardiac Science's core technology.

About Survivalink Corp.

Survivalink was founded in 1992 and financed by medical technology venture capital firms US Trust, Spray Ventures, Fidelity, and CIBC Capital Partners. Survivalink is focused on public access defibrillation, empowering responders without extensive training to intervene quickly and effectively in cardiac emergencies and save lives.

Survivalink introduced its first AED to the market in 1995 and in 1999 began selling its FirstSave(R) biphasic AED. It is estimated that Survivalink's AED products have saved more than 2,500 lives.

In 2000, Survivalink sold more than 6,000 AEDs, grew its revenue by more than 40 percent to $17.1 million and was profitable. Survivalink has more than 50 patents issued on its AED technology.

About Cardiac Science

Cardiac Science develops, manufactures and markets life-saving external cardiac defibrillator devices and proprietary software that monitors and automatically treats cardiac arrest patients.

RHYTHMx ECD(TM) tachyarrhythmia detection and defibrillation software, the company's core proprietary technology platform, has multiple applications including use in bedside external defibrillators, wearable defibrillators and standard patient monitors that are widely used in hospitals throughout the world.

Cardiac Science's first commercial product, the Powerheart(R) is currently used in hospitals worldwide.

Powerheart continuously monitors in-hospital patients at risk of sudden cardiac arrest, instantly detects the onset of a life-threatening heart rhythm, and when appropriate, automatically delivers defibrillation shocks within seconds and without human intervention to re-establish the heart's normal rhythm.

The ability to respond to a life-threatening heart rhythm within seconds saves lives and minimizes a loss of oxygen to the brain, thereby eliminating potential neurological damage and a diminished quality of life that often occurs when defibrillation is withheld for even a few minutes.

Cardiac Science's global network consists of prominent distributors in 37 countries encompassing Asia, the Middle East, Europe, South America and North America. Cardiac Science has an agreement with Medtronic Physio-Control, a division of Medtronic Inc., to distribute the Powerheart in the United States, Canada, and nine European countries.

For more information, visit www.cardiacscience.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to: the company's ability to complete the Survivalink acquisition; the effect of the acquisition on Cardiac Science's business; the safety and efficacy of the Powerheart; its ability to increase survival rates for in-hospital cardiac arrest victims; its ability to improve patient-care and lessen patient defibrillation. Cardiac Science cautions that these and other forward-looking statements are qualified by important risk factors that could cause actual result to differ materially from those reflected by the forward-looking statements. Such risk factors include, but are not limited to hospital operations; market and clinical users' acceptance of new and existing products; impact of competitive products and pricing; and the changing market conditions. Information on these and other factors are detailed in the company's Form 10-K for the year ending Dec. 31, 1999 and other documents filed with the Securities and Exchange Commission.

Note to Editors: Powerheart and RHYTHMx ECD are registered trademarks of Cardiac Science. FirstSave is a registered trademark of Survivalink Corp.