CardioDynamics Announces Quarterly Net Sales Growth: 224% Increase in Fiscal 1998 Second Quarter Net Sales over First Quarter Net Sales.

SAN DIEGO--(BW HealthWire)--June 16, 1998--CardioDynamics International Corporation (NASDAQ:CDIC), a noninvasive digital cardiac output monitoring manufacturer, announced today fiscal 1998 second quarter results for the period ended May 31, 1998.

Net sales for the second fiscal quarter ended May 31, 1998 were $477,726, a 224% increase over first quarter fiscal 1998 sales due primarily to commencement of shipments of the recently FDA-cleared BioZ.com and the Company's transition to a direct sales force. Although second quarter 1998 sales were lower than those recorded in the comparable quarter of 1997, the majority of the 1997 sales were to domestic distributors for demonstration and stocking inventory. As a result of the Company's decision in late 1997 to add a direct sales force in targeted metropolitan areas, a 100% reserve for distributor returns was established against these distributor sales.

Approximately $606,000 of the distributor reserve related specifically to the $778,528 of sales recorded in the second quarter of 1997. The Company recorded a net loss in the second quarter of $1,390,571, or $0.04 per share, compared with the 1997 second quarter net loss of $502,862, or 0.02 per share. The increased net loss is the result of concentrated BioZ.com development and product launch expenses, along with the aggressive expansion of the Company's direct sales force.

Commenting on the results, Rhonda F. Pederson, President of CardioDynamics, stated, "During the 1998 second quarter, 29 BioZ systems were sold, including 10 BioZ.com systems. In addition, the Company also placed 10 BioZ systems under the Company's recently implemented "No Risk" and "Preferred Partnership" rental programs. The rental programs are designed to increase sales by allowing clinicians the opportunity to experience the benefits and cost-savings of the BioZ systems, without the risks typically associated with capital equipment purchases. An additional factor driving increased sales was the Company's transition from distributors to a direct sales force. After test piloting a direct sales program in November 1997, we have increased our U.S. direct sales force by nine sales representatives, bringing the total to 11, and we plan to expand to as many as 16 by the end of 1998. The U.S. direct sales force has the focus, expertise, and relationships that have expedited the sales process. As we enter the third quarter, the Company now has a total installed base of 82 BioZ systems and a healthy sales order backlog."

As part of a distribution alliance agreement signed in April 1998, the Company will commence BioZ.com shipments during the third quarter to Cardiomedics, Inc. The relationship with Cardiomedics will expand penetration in the emerging counterpulsation cardiology marketplace, which will benefit from the BioZ's noninvasive hemodynamic monitoring capabilities, and will assist Cardiomedics in demonstrating the value of its noninvasive counterpulsation treatment for patients with angina pectoris. In order to penetrate the BioZ's numerous potential markets, CardioDynamics will continue to seek additional alliances with select medical device manufacturers and managed care companies.

In the second quarter, the Company announced the results of four valuable clinical studies at major trade shows, which further validated the BioZ's Thoracic Electrical Bioimpedance (TEB) technology and its applications in various clinical settings. These settings include the operating room, emergency department, pacemaker clinic and critical care units. In addition to the four completed studies, there are six additional studies that will be completed within the next 6 to 12 months. Cost containment, outcomes, and application of the BioZ in the areas of congestive heart failure, home healthcare, hypertension and emergency medicine will be the focus of these studies.

A notable management change was implemented in the second quarter with the appointment of Michael K. Perry as Chief Executive Officer of CardioDynamics. Pederson stated, "Mike's solid experience in medical device operations and expertise in finance have been instrumental in driving the Company's achievement of significant milestones during the second quarter. We are looking forward to accelerating sales with Mike leading our team as we enter the third quarter."

Perry added, "In addition to the substantial increase in sales, other important second quarter achievements include initial shipments of the BioZ.com after an accelerated 11-month development cycle and a successful ISO 9001 quality audit. Achieving ISO 9001 will allow CE Mark certification of the BioZ systems and greatly facilitate our sales expansion into the European Community. Additionally, sales to Asia Pacific will increase rapidly once we obtain the Japanese Ministry of Health's approval. The focus of the Company is to continue penetration of the BioZ's estimated $4 billion worldwide market, with an additional $800 million in potential annual revenue for disposable electrodes and service contracts. The significant accomplishments in the second quarter were a great step in the Company's quest to establish the BioZ system's noninvasive TEB technology as a standard of care, similar to blood pressure monitoring, electrocardiograms (EKG), and pulse oximetry."

CardioDynamics develops, manufactures, and markets noninvasive digital cardiac output monitoring devices, which provide continuous data on a wide range of hemodynamic parameters (measurements of the heart's ability to deliver oxygen-rich blood throughout the body). The Company's primary products, the BioZ(tm) System, BioZ(tm) Portable, and BioZ.com(tm), use Thoracic Electrical Bioimpedance technology to obtain data, which is typically obtained through a time-consuming, costly, and potentially dangerous invasive Pulmonary Artery Catheterization procedure. The BioZ(tm) product line uses the Company's core technology, the proprietary DISQ (Digital Impedance Signal Quantifier) Technology, and Z MARC(tm) (Modulating Aortic Compliance) Algorithm, which provide improved measurements of impedance waveforms and automatic electronic calibration, thereby increasing the repeatability and reliability of TEB technology. For additional information, please refer to the Company's web site at www.cardiodynamics.com.

Note: Except for the historical and factual information contained herein, this press release contains forward-looking statements, the accuracy of which are necessarily subject to uncertainties, as well as other risks detailed in the Company's filings with the SEC, including its 1997 Form 10-KSB. The Company does not undertake to update the disclosures contained in this press release. -0-

               CardioDynamics International Corporation

                      Results From Operations:

                            (Unaudited)

                        Three Months Ended          Six Months Ended
                             May 31,                    May 31,
                         1998        1997           1998       1997

Net Sales             $477,726    $778,528        $625,238    $910,456
Gross Profit           186,117     411,108         139,660     448,854
Loss from Operations(1,376,921)   (574,608)     (2,689,078) (1,396,269)
Net Loss            (1,390,571)   (502,862)     (2,679,125) (1,486,226)

Net Loss per Common
 Share, Basic and
  Diluted               $ (.04)     $ (.02)         $ (.08)     $ (.05)
Weighted Average
 Number of
  Common Shares
   Outstanding      32,100,743  31,865,439      32,093,408  30,771,712



                       Selected Financial Information

                        May 31,     November 30,
                         1998          1997       Change

                     (Unaudited)    (Audited)


Cash                 $ 2,726,721   $ 2,655,349        3%
Current Assets         4,061,201     3,750,763        8%
Current Liabilities    3,921,575     1,030,603       281%

Total Assets           4,276,832     4,023,205         6%
Total Liabilities      3,974,728     1,057,126       276%

CONTACT: CardioDynamics International Corporation

Bonnie Dupuis, Manager, Investor Relations

888/522-2342

[e-mail]