CardioDynamics International Corp. Reports 153% Increase in Fiscal 1998 Third Quarter Net Sales.

SAN DIEGO--(BW HealthWire)--Sept. 17, 1998--CardioDynamics International Corp. (Nasdaq: CDIC), a noninvasive digital cardiac function monitoring manufacturer, today announced its fiscal 1998 third quarter results for the period ended Aug. 31, 1998. Net sales for the third quarter ended Aug. 31, 1998 were $670,723, up 153% from sales of $265,000 in the comparable quarter in 1997. This is a 40% increase over second quarter fiscal 1998 net sales of $477,726 and is the third successive quarter of increasing sales.

The company attributed the medical community's growing acceptance of its products, the company's transition to a domestic direct sales force, and the introduction of its BioZ.com(TM), as primary reasons for the surge in net sales.

During the third quarter, the company shipped 26 BioZ systems to domestic end users, including multi-system orders to Crawford Long Hospital (Atlanta), Glen Falls Memorial Hospital (Glen Falls, New York), and Health Center of Excellence, (Tampa).

Additionally, the company placed 4 BioZ systems under the "No Risk" and "Preferred Partnership" rental programs. The rental programs allow clinicians the opportunity to experience the benefits of the BioZ system and to realize its cost savings without the risks typically associated with capital equipment purchases. European distributors placed 7 orders for BioZ.com systems during the third quarter and shipments will commence when the company receives CE Mark approval. The total installed base of BioZ systems to date is 96.

Commenting on the results, Michael K. Perry, chief executive officer of CardioDynamics, stated, "The strong increase in third quarter net sales reflects the growing demand and acceptance in the medical community of our noninvasive BioZ(TM) product line and Thoracic Electrical Bioimpedance (TEB) technology. We anticipate continued sales growth in the upcoming quarters as a result of our significant investment in a domestic sales force, our aggressive commitment to sales and marketing in both the domestic and international markets, and our pursuit of new business alliances with select medical device manufacturers and managed care companies."

In an effort to increase sales penetration, the company implemented a strategic Luminary Accounts Program. This program targets sales to leading U.S. teaching institutions that historically have been opinion leaders in the medical community. Sales to Luminary Accounts will significantly facilitate sales to non-teaching hospitals and private physicians.

During third quarter, sales to targeted Luminary Accounts included UCSF Stanford Health Care (Palo Alto, Calif.), Crawford Long Hospital (Atlanta), Harper Hospital (Detroit), and Medical University of South Carolina (Charleston, South Carolina). The company considers sales to these prestigious accounts as further evidence that key medical opinion leaders are embracing the BioZ systems.

A net loss was recorded for the fiscal third quarter of 1998 of $1,292,175, or $0.04 per share, compared with a net loss of $1,012,907, or $0.03 per share, reported for the same period last year. The third quarter increased net loss was primarily due to the continued expansion of the domestic direct sales force, expenditures in research and development to support the European regulatory approval process, and increased production and marketing costs related to the BioZ(TM).com.

The company has continued to transition from a domestic distributor sales network to a direct sales force. Presently, there are 15 U.S. direct sales representatives, and the company anticipates expanding this total to 18 by year-end.

Other significant events which occurred during the fiscal 1998 third quarter included the company's receipt of Japanese Ministry of Health approval in July to market the BioZ(TM) System(TM) in Japan, the European launch in August of the BioZ.com(TM) at the European Society of Cardiology Conference in Vienna, Austria, and the establishment of European distributors representing Italy, Austria, Hungary, Slovakia, Slovenia, and the Czech Republic. Third quarter accomplishments should allow the company to capitalize on the opportunities these new markets have to offer.

Last month, the company also completed the first phase of a $6 million private placement of preferred shares with a group of institutional investors.

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 (TEB) technology to obtain data, which is typically available only through a time-consuming, costly and potentially dangerous invasive Pulmonary Artery Catheterization procedure.

The BioZ(TM) product line uses the company's proprietary DISQ(TM) (Digital Impedance Signal Quantifier) technology and the Z MARC(TM) (Modulating Aortic Compliance) algorithm which together 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 and risks, which include sole dependence on the BioZ product line, competition from Baxter Healthcare Corp. (manufacturer of the Swan-Gd 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 1997 Form 10-KSB. The company does not undertake to update the disclosures contained in this press release.

               CardioDynamics International Corp.
Results of Operations:
(Unaudited)
---------------------- ----------------------- -----------------------
                       Three Months Ended        Nine Months Ended
                           August 31                   August 31,
                    ----------------------- -----------------------
                        1998            1997        1998            1997
---------------------- ----------- ----------- ----------- -----------
Net Sales                $670,723    $265,000   $1,295,961  $1,175,456
Gross Profit                 371,551     73,283         511,211     522,137
Loss from Operations   (1,216,955) (1,067,854) (3,905,233) (2,464,166)
Net Loss               (1,292,175) (1,012,907) (3,971,301) (2,499,177)
                    =========== =========== =========== ===========
Net Loss Per Common
Share, Basic and
 Diluted                   $ (.04)     $ (.03)           $ (.12)     $ (.08)
Weighted Average
 Number of Common
 Shares Outstanding    32,105,450  31,926,368  32,097,451  31,159,407
                    =========== =========== =========== ===========
Selected Financial Information
---------------------------------- ----------- ----------- --------
                                 August 31, November 30, Change
                                    1998        1997
                                (Unaudited)  (Audited)
---------------------------------- ----------- ----------- --------
Cash                                   $4,119,056  $2,655,349      55%
Current Assets                            5,730,746        3,750,763      53%
Current Liabilities                    3,984,188        1,030,603     287%
Total Assets                            5,953,748        4,023,205      48%
Total Liabilities                    4,045,800        1,057,126     283%
                                =========== =========== ========