Cardima Announces Third Quarter Financial Results.

Business Editors

FREMONT, Calif.--(BUSINESS WIRE)--Oct. 24, 2002

Cardima(R), Inc. (Nasdaq: CRDM), developer of the REVELATION(R) Tx and REVELATION(R) Helix microcatheter systems for the treatment of atrial fibrillation (AF), today reported financial results for the third quarter ended September 30, 2002.

The Company reported a net loss of $3,358,000, or $0.07 per share, for the third quarter of 2002, compared with a net loss of $3,090,000, or $0.09 per share, for the third quarter of 2001. The net loss for the first nine months of 2002 was $9,096,000, or $0.21 per share, compared with $5,724,000, or $0.20 per share, which included a $4 million gain on the sale of certain patents reported in the first quarter of 2001.

Revenues for the third quarter of 2002 were $444,000, compared with $465,000 for the third quarter of 2001, a decrease of 4.5%. For the nine-month period ended September 30, 2002, revenues were $1,633,000, compared with $1,477,000 for the same nine-month period in 2001, representing an increase of 11%. The overall increase in sales for the nine-month period in 2002 is attributed to the initial launch of therapeutic products in Europe during the first quarter and continued growth in Asian markets.

Operating expenses for the third quarter of 2002 increased 4%, to $2,744,000, compared with $2,629,000 for the third quarter of 2001. Selling, general and administrative expenses for the third quarter of 2002 increased by less than 0.5%, or $6,000, to $1,544,000, compared with $1,538,000 for the same period of 2001. Research, development, clinical and regulatory expenses for the third quarter of 2002 were $1,200,000, compared with $1,091,000 for the third quarter of 2001, an increase of 10%.

Mr. Gabriel Vegh, Chief Executive Officer of Cardima, said, "During this quarter, we achieved a major milestone by submitting the REVELATION Tx pre-market approval (PMA) application to the Food and Drug Administration (FDA). Our regulatory and clinical team worked very hard to make this submission on schedule and I am very proud of their efforts. We are working with the FDA to schedule a panel meeting to review our PMA application as soon as possible."

The PMA submission, which is an important step for Cardima in gaining U.S. approval for the REVELATION Tx therapeutic catheter to treat paroxysmal AF, is targeted for approval in the first quarter of 2003. The REVELATION Tx is the first minimally invasive catheter-based treatment for AF to complete a multi-center clinical trial and be submitted in a PMA to the FDA.

Cardima has scheduled an investor conference call regarding this announcement to be held today, beginning at 4:30 p.m. Eastern Time. To participate in the live call via telephone, please call [phone] for domestic callers, or [phone] for international callers. A telephone replay will be available until 11:59 p.m. Eastern Time October 26, 2002 by dialing [phone] for domestic callers, or [phone] for international callers, and using the passcode 6257691.

Individuals interested in listening to the conference call via the Internet may do so by visiting the Company's Web site at www.cardima.com. A replay will be available on the Web site for 90 days.

Cardima, Inc. developed the REVELATION(R) Tx linear ablation microcatheter system as a minimally invasive, single-use product that has the potential for curing AF. The REVELATION(R) Tx linear ablation microcatheter system is believed by the Company to be the first device that has completed a multi-center clinical trial and submitted a pre-market approval (PMA) application to treat AF to the U.S. Food and Drug Administration (FDA). Cardima submitted the PMA to the FDA on September 20, 2002. Clinical trial data from the REVELATION(R) Tx microcatheter demonstrated safety and promising efficacy. Approval of the REVELATION Tx will mark a major milestone in the Company's mission to get better devices in the hands of the medical community that provide a potential cure for AF.

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 the Company's ability to raise additional capital, conduct successful clinical trials, obtain regulatory approvals and gain acceptance from the marketplace for its products. Additional risks are set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2001 filed with the Securities and Exchange Commission on April 1, 2002. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.

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

                         Three months ended        Nine months ended
                           September 30,             September 30,
                          2002        2001         2002        2001

Revenues               $    444   $    465      $  1,633    $  1,477
Cost of goods sold        1,074        949         2,667       2,868

 Gross margin              (630)      (484)       (1,034)     (1,391)

Operating expenses:
 Research and
  development             1,200      1,091         3,246       3,738
 Selling, general and
  administrative          1,544      1,538         4,865       4,639

 Total operating
  expenses                2,744      2,629         8,111       8,377

Operating loss           (3,374)    (3,113)       (9,145)     (9,768)

Interest and other
 income                      18         37            65          93
Interest expense             (2)       (14)          (16)        (49)
Gain on sale of
 intellectual property       --         --            --       4,000

Net loss               $ (3,358)  $ (3,090)     $ (9,096)   $ (5,724)

Net loss per share     $  (0.07)  $  (0.09)     $  (0.21)   $  (0.20)

Shares used in computing
 net loss per share      47,072     34,641        44,139      28,469


                      Selected Balance Sheet Data
                              (Unaudited)

                               September 30,
                                   2002          December 31,
                                (Unaudited)         2001(a)

Cash, cash equivalents and
 short term investments           $ 2,887         $ 7,542
Working capital                     2,354           6,756
Total assets                        6,858          11,818
Total liabilities                   2,729           3,061
Stockholders' equity                4,129           8,757

(a) Derived from audited financial statements