Cardiac Science Sells Assets of Its Diagnostic Monitoring Subsidiary to Biosensor Corp.

IRVINE, Calif.--(BW HealthWire)--Jan. 8, 1999--Cardiac Science Inc. (OTC:DFIB) Friday announced it sold substantially all of the assets of its wholly-owned Diagnostic Monitoring subsidiary to Biosensor Corp. (OTC:BSNR).

In consideration for the assets of Diagnostic Monitoring, Biosensor, a leading manufacturer and marketer of Holter ECG monitoring devices, will issue to Cardiac Science (through Diagnostic Monitoring) 1.44 million shares of its common stock, representing 7.7 percent of the voting shares of Biosensor, and assume substantially all of the liabilities of Diagnostic Monitoring totaling approximately $110,000.

"Divestiture of our subsidiary's Holter ECG product line is consistent with our commitment to focus exclusively on our defibrillation technology," said Raymond W. Cohen, president and chief executive officer. "Our strategic alliance with Medtronic Physio-Control, the world's market leader in defibrillation, gives Cardiac Science a powerful partner to commercialize our technology."

In December 1998, Cardiac Science and Medtronic Physio-Control entered into a five-year exclusive North American distribution and license agreement.

Cardiac Science designs and markets proprietary non-invasive resuscitation devices that increase the survival rates of cardiac arrest victims. Cardiac Science's Powerheart(R) AECD(R) fully automatic bedside external defibrillator-monitor and RHYTHMx ECD(TM) cardiac arrest detection and defibrillation technology provide continuous monitoring of in-hospital patients at risk of sudden cardiac arrest, instantly detect life threatening heart rhythms and when appropriate, deliver defibrillation shocks, within seconds and without human intervention to convert a patient's heart back to its normal rhythm. For more information, visit the company's Internet site at www.cardiacscience.com.

This news release contains forward-looking statements, including but not limited to those regarding Cardiac Science's ability to improve patient care, increase survival rates for in-hospital cardiac arrest victims, and reduce patient care costs. Actual results could vary materially from the description contained herein due to many factors, including hospital operations, market and clinical users acceptance of new and existing products, impact of competitive products and pricing, changing market conditions, and risks detailed in the company's Form 10-KSB for the year ending Dec. 31, 1997 and other documents filed with the Securities and Exchange Commission. The company does not undertake any obligation to update the information contained herein, which speaks only as of this date. Powerheart, AECD, RHYTHMx, and ECD are trademarks of Cardiac Science Inc.