CardioDynamics International Announces First Phase of Internet Medical Product Development; Company Addressing Demand for Internet-Based Home Telemonitoring Systems.

Business Editors/Health and Medical Writers

SAN DIEGO--(BW HealthWire)--Jan. 11, 2000

CardioDynamics International Corp. (Nasdaq:CDIC), manufacturer of BioZ(R) noninvasive digital cardiac output monitoring systems, announced today the launch of the first phase of its Internet medical product development strategy.

This phase includes the technological infrastructure for an Internet-based electronic data center, BioZ.net(TM), and the company's electronic commerce program, BioZ.buy(TM), located at www.cardiodynamics.com.

Michael K. Perry, CardioDynamics' chief executive officer, stated, "BioZ.net is the initial phase in the development of our Internet-based medical product family and will provide e-commerce ordering capabilities, as well as a foundation for our telemedicine business. The Internet is improving efficiency in bringing new technologies more rapidly to the medical marketplace, and we are excited to initiate the execution of our Internet business strategy, which we believe will accelerate the rapid adoption of our proprietary technology."

This first phase advances the company into the estimated $25 billion emerging Internet medical market, as well as provides access to the approximately $83 billion which is spent annually by hospitals and other healthcare organizations on medical supplies and equipment. More hospitals and physicians are embracing the Internet to buy products and can now rapidly generate electronic purchase orders and invoices. The company also intends to offer its products through their strategic alliance partnerships, including GE Marquette Medical Systems' e-commerce.

The company has spent over two years evaluating and planning for its Internet-based electronic data center and medical supply chain business. With an experienced management team in place, as well as market acceptance of the company's proprietary Impedance Cardiography (ICG), BioZ.net and BioZ.buy will efficiently join buyers, sellers, and patients in a technology-based marketplace. This additional medium will have a positive impact on the company's position in the entire healthcare supply chain, from the point of production to the point of patient home use, the company's ultimate goal.

Perry added, "The business of exchanging data among patients and physicians on a real-time basis is finding more applications and acceptance, as evidenced by research published in this months issue of CHEST, which found very high patient acceptance of an Internet-based home telemonitoring system. This is the exact niche we are expanding into, and we will be well positioned as telemedicine rapidly expands into the U.S. healthcare system. In the U.S. alone, home healthcare and telemedicine have the potential of eliminating up to $50 billion out of the $400 billion annual hospitalization costs."

CardioDynamics, with headquarters in San Diego, is committed to fundamentally changing the way hemodynamic monitoring is performed in healthcare. The company's primary products, the BioZ(R) System, BioZ(R) Portable, and BioZ.com(TM) , utilize Impedance Cardiography (ICG) to noninvasively obtain data on a wide range of hemodynamic parameters. Whereas Electrocardiography (ECG) measures the heart's electrical characteristics, ICG measures the heart's mechanical (blood flow) characteristics. Physicians around the world are currently using the BioZ products, including major medical centers such as the Mayo Clinic (Rochester), UCSF Stanford Health Care (Palo Alto), Yale New Haven Hospital (New Haven), and Baylor College of Medicine (Houston). The worldwide market potential for BioZ products is estimated to be $5 billion, together with an additional $800 million in recurring annual revenue for disposables. For additional information, please refer to the company's Web site at www.cardiodynamics.com.

Forward-Looking (Safe Harbor) Statement:

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 and risks, which include sole dependence on the BioZ product line, competition from Baxter Healthcare Corp. (manufacturer of the Swan-Ganz(TM) device), further capital requirements, and various uncertainties characteristic of companies just emerging from the development stage; as well as other risks detailed in the company's filings with the SEC, including its 1998 Form 10-KSB. The company does not undertake to update the disclosures contained in this press release.