Cardima and Medtronic Announce Joint Development Agreement.

FREMONT, Calif.--(BW HealthWire)--Sept. 10, 1999--

Cardima(R), Inc. (NASDAQ: CRDM) and Medtronic, Inc. (NYSE: MDT) today announced that the companies have agreed to jointly develop proprietary catheter systems utilizing Cardima's microcatheter technology. Initially, Cardima will develop various products using Medtronic's specifications and utilizing several of Cardima's patented catheter designs.

"Cardima has made many significant innovations in the design and engineering of microcatheters," stated Steve Mahle, President of Medtronic Cardiac Rhythm Management. "We look forward to working with Cardima to find ways to incorporate their technologies into important new product offerings."

Cardima, founded in 1993, has developed families of unique electrophysiology microcatheter systems for diagnosing and treating atrial fibrillation (AF) and ventricular tachycardia (VT). These microcatheter systems can access the coronary venous system utilizing specially designed fixed and deflectable guiding catheters. Cardima markets these products through its own direct salesforce in the United States and selected European countries and through a network of distributors in many countries of the world.

"We are pleased to be working with the Medtronic team and are encouraged that Cardima has gained the respect of a large, well-recognized company. Cardima has valuable, pioneering technology in the field of microcatheter development," stated Phil Radlick, Ph.D., President and Chief Executive Officer of Cardima. "This agreement helps to validate our core technology and its potential value in the medical device marketplace."

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 believes it 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.

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 limitation, those set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 1998 as amended March 23, 1999 and subsequent periodic reports filed with the Securities and Exchange Commission, and the Company's ability to complete successful clinical trials, obtain timely regulatory approvals and gain acceptance from the marketplace for its products.