Cardima Provides Update Regarding Discussions with Agility Capital, LLC.

FREMONT, Calif. -- Cardima, Inc. (Other OTC: CRDM) provides update regarding discussion with Agility Capital, LLC.

In the press release dated Monday, June 20, 2005, the Company described a secured loan agreement with Agility Capital, LLC, a notice of default by Agility Capital, LLC, and the freezing of the Company's bank accounts. A clarification of current status is as follows.

Agility has confirmed receipt of $456,420.16 taken from Cardima's frozen bank accounts, and has noticed a balance due of $300,279.84. At the Company's request, Agility has consented to lift their exclusive control of Cardima's operating bank account until July 15, 2005, at which time Agility reserves the right to exercise exclusive control. Upon full repayment of balance due, Agility will terminate its security interest in Cardima's bank accounts and release any restrictions Agility may have a right to impose on those accounts.

About Cardima

Cardima, Inc. has developed the REVELATION Tx, REVELATION T-Flex and REVELATION Helix linear ablation microcatheters, the NAVIPORT deflectable guiding catheters, and the INTELLITEMP energy management system for the minimally invasive treatment of atrial fibrillation (AF). The REVELATION Tx, REVELATION T-Flex and REVELATION Helix systems and the INTELLITEMP have received CE Mark approval in Europe. The Company has also developed and obtained approval for in the USA a Surgical Ablation System, which targets market application by cardiac surgeons to ablate cardiac tissue during heart surgery using radio frequency (RF) energy.

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 expressed in or implied by such forward-looking statements. Potential risks and uncertainties include the uncertainties associated with the prospects for FDA approval of our premarket approval application for the REVELATION Tx, including the ramifications of our recent meeting with the FDA, the prospect for any future clinical trials or regulatory activities, the Company's ability to obtain funding under the Agility loan facility, the risks associated with the Agility loan facility's restrictive covenants, security interest, fee provisions and other terms and conditions, the risk that the Company will not be able to raise additional capital in the immediate term as needed to continue operations and the risk that we will be unable to secure a strategic transaction involving the Surgical Ablation System. Additional risks and uncertainties are set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2004, the Company's Quarterly Report on Form 10-Q for the first quarter ended March 31, 2005, and in the Company's subsequent SEC filings. 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 or changes in the Company's plans or expectations.