Cardima Receives $4 Million Payment From Medtronic for Intellectual Property Sale.

Health/Medical & Business Editors

FREMONT, Calif.--(BW HealthWire)--Jan. 31, 2001

Cardima(R), Inc. (Nasdaq SC: CRDM), developer of the Revelation(TM) Tx microcatheter system for the treatment of atrial fibrillation (AF), today announced receipt of the second and final $4 million payment from Medtronic, Inc. (NYSE: MDT) on completion of the transfer of certain patents and related intellectual property pertaining to intravascular sensing and signal detection. The agreement with Medtronic was first announced in December 2000.

"We are pleased to complete this transaction with the Medtronic team," said Gabriel Vegh, President and Chief Executive Officer of Cardima. "Cardima's primary focus is completing our AF Phase III clinical trial in the U.S., and developing next-generation systems to potentially treat all forms of atrial fibrillation."

Cardima developed the technology sold to Medtronic for accessing and gathering signals in the coronary sinus and its feeder vessels for treating atrial fibrillation and ventricular tachycardia. Medtronic saw the strength and potential of these patents for intravascular sensing and device placement. Cardima received a total of $8 million for the patents and related intellectual property and retained a license to the application of that technology to the Company's core focus.

Cardima, Inc. developed the Revelation Tx system for the treatment of AF, which the Company estimates is a potential $6 billion market that is poorly served by current treatment alternatives. AF afflicts an estimated 2 million people in the U.S. and approximately 4 million worldwide. The Revelation Tx system is a minimally invasive, single-use, microcatheter-based product for potentially curing AF, and is believed to be 2-3 years ahead of other development-stage ablation therapies in the approval process. Phase I and II data with the Revelation Tx system demonstrated safety and promising efficacy; enrollment in a Phase III study is underway, and is expected to be completed in mid-2001. The Company will need to raise additional capital to continue to develop and market its products.

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 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, 1999 filed with the Securities and Exchange Commission on March 30, 2000 and as amended on May 1, 2000, and subsequent Forms 10-Q. 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.