Cardima Raises $10.5 Million in Private Placement; Includes Equity Investment by St. Jude Medical.

Business Editors

FREMONT, Calif.--(BUSINESS WIRE)--Feb. 22, 2000

Cardima, Inc. (Nasdaq:CRDM) announced it had raised $10.5 million of equity capital, before expenses, through a private placement of 4,666,666 shares of common stock at a purchase price of $2.25 per share primarily to certain institutional investors and St. Jude Medical, Inc. The private placement included warrants exercisable for 933,333 shares at an exercise price of $2.48 per share. The Company has agreed to register the purchased shares for resale by the investors, including the shares of common stock underlying the warrants.

Phillip Radlick, Ph.D., President and Chief Executive Officer of Cardima, said, "We are extremely pleased to have completed this round of financing, to have St. Jude Medical come into the round as an investor and act as our exclusive distributor for sales of our diagnostic products in the U.S. We believe that this investment allows Cardima to continue to execute our business plan by increasing sales through the St. Jude Medical cardiac rhythm management sales organization and continuation of clinical trials of our therapeutic products for patients suffering from atrial fibrillation and ventricular tachycardia."

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 microcatheter systems to be used in both diagnosing and treating AF and VT. For further information about atrial fibrillation and ventricular tachycardia, contact Cardima's website at www.cardima.com.

Statements included in this press release that are not historical or current facts and which relate to the potential for increased sales are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks and uncertainties include, but are not limited to, whether the Company will increase sales through the St. Jude organization, whether the Company will continue sales growth in the European Union and those risks discussed in the Company's periodic reports filed with the Securities and Exchange Commission.