Cardima, Inc. Announces First Quarter Results -- Revenues Increase 131%.

FREMONT, Calif.--(BW HealthWire)--April 28, 1998--Cardima(TM), Inc. (NASDAQ:CRDM), today announced financial results for the quarter ended March 31, 1998. Revenues for the quarter increased to $501,000 from $217,000 for the same period a year ago, an increase of 131%. The increases in revenues were due to U.S. sales of the Cardima Pathfinder(TM) line of microcatheters for diagnosis of ventricular tachycardia (VT) and the Revelation(TM) line of microcatheters for diagnosis of atrial fibrillation (AF) following FDA clearance in January and November 1997, respectively.

Net loss for the first quarter ended March 31, 1998 was $3,849,000, or $0.47 loss per share, compared with a net loss of $2,325,000, or $0.36 loss per share, for the same period in 1997. The increased loss was due primarily to expenses relating to increased spending on new product development, stepped-up clinical and regulatory efforts and increased sales expenses related to the expansion of sales personnel in the United States.

Phil Radlick, Ph.D., President and CEO of Cardima, said, "We are pleased with our sales growth this quarter. Sales increased 22% over Q4 1997 and this is the fifth consecutive quarter of increasing gross sales. The sales growth indicates continuing physician acceptance of our microcatheter systems in the U.S. Our clinical trial for treatment of AF in Europe is proceeding as expected, and we have recently treated our second patient in our U.S. AF trial. The results in both trials to date have shown considerable improvement in each patient's condition with treatment in the right atrium only. The AF trial in Europe is expected to lead to a CE mark application early in the second half of this year, allowing us to market the device for therapeutic applications. The next step in the U.S. will be to submit the results of this 10 patient trial and apply for an IDE (Investigational Device Exemption) in order to start our pivotal trial."

Cardima, Inc. designs, develops, manufactures and markets minimally invasive, single-use microcatheter-based systems for the dual purpose of finding and treating the two most common forms of cardiac arrhythmias: atrial fibrillation, a condition of the heart characterized by the irregular and very rapid beating of the heart's atrial chambers, and ventricular tachycardia, a life-threatening condition in which heartbeats are improperly initiated from within the ventricular walls, bypassing the heart's normal conduction system. Cardima is the only company developing unique microcatheters to be used in diagnosing and treating VT from within the wall of the heart. For further information about atrial fibrillation and ventricular tachycardia, contact Cardima's website at www.cardima.com.

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, without limitations, those set forth in the Company's Registration Statement on Form S-1 and the Companies Annual Report on Form 10-K for December 31, 1997 filed with the Securities and Exchange Commission, and the Company's ability to conduct successful clinical trials, obtain timely regulatory approvals and gain acceptance from the marketplace for its products. -0-

                            Cardima, Inc.
                       Statements of Operations
                In thousands, except per share amounts
                             (Unaudited)

                                                 Three months ended
                                                       March 31,
                                                   1998         1997

Revenues                                         $   501      $   217
Cost of goods sold                                   748          374
     Gross margin                                   (247)        (157)

Operating expenses:
     Research and development                      1,663          810
     Sales, general and administrative             2,047        1,330
          Total operating expenses                 3,710        2,140

Operating loss                                    (3,957)      (2,297)

Interest and other income                            144           25
Interest expense                                     (36)         (53)

Net loss                                         $(3,849)     $(2,325)

Basic and diluted net loss per share             $ (0.47)
Shares used in computing basic and
 diluted net loss per share                        8,137

Pro forma net loss per share                                  $ (0.36)
Shares used in computing pro forma
 net loss per share                                             6,433


                      Selected Balance Sheet Data
                             In thousands

                                            March 31,   December 31,
                                              1998         1997(a)

Cash, cash equivalents and
 short-term investments                     $ 9,354        $12,848
Working capital                               8,078         11,609
Total assets                                 14,343         17,674
Total liabilities                             3,537          3,230
Stockholders' equity                         10,806         14,444

(a)  Derived from audited financials

CONTACT: Cardima Inc.

Ron Bourquin, 510/354-0162

http://www.cardima.com