CardioDynamics Reports First Profitable Year, 18th Consecutive Quarter of Year-Over-Year Revenue Growth, and 23% Increase in Fourth Quarter 2002 Sales.

Business Editors & Health/Medical Writers

BIOWIRE2K

SAN DIEGO--(BUSINESS WIRE)--Jan. 22, 2003

Company Posts Second Quarter of Positive Operating Cash Flow and

73% Increase in Recurring Sensor Revenue

CardioDynamics (Nasdaq:CDIC), the innovator and global leader of Impedance Cardiography (ICG) technology and manufacturer of BioZ(R) noninvasive cardiac function monitoring systems, today announced its first profitable year, 18th consecutive quarter of year-over-year quarterly revenue growth, and 23% increase in fourth quarter 2002 sales over the same period in the prior year.

2002 Fourth Quarter and Year-End Results:

Net sales for fourth quarter fiscal 2002 were $7.3 million, an increase of 23% over sales of $5.9 million for the same quarter in fiscal 2001. Fiscal 2002 sales were $23.5 million, an increase of 20% over sales of $19.6 million reported for fiscal 2001. Gross margin for fourth quarter 2002 increased to 73.9% of sales, up from 72.3% for the same quarter in fiscal 2001.

Net income for the fourth quarter 2002 was $554,000 (up 118%), or $0.01 per diluted share, compared to net income of $254,000, or $0.01 per diluted share reported in fourth quarter 2001. Net income for fiscal 2002 was $310,000, or $0.01 per diluted share, compared to fiscal 2001's net loss of $659,000, or ($0.01) per diluted share.

Operating Highlights:

During fourth quarter 2002, 203 BioZ Systems were shipped, increasing the total number of BioZ Systems sold to over 2,200, up 39% from one year ago. The U.S. direct sales team posted a 47% growth in sales over fourth quarter 2001 and increased sales 21% sequentially over third quarter 2002. Sensor revenue in fourth quarter 2002 was $836,000 (12% of sales), up 73% from $483,000 (8% of sales) in the fourth quarter of the previous year. For fiscal 2002, sensor revenue was $2.8 million, an increase of 65% from $1.7 million in fiscal 2001.

The Company achieved $380,000 of cash flow from operations in the fourth quarter, the second quarter of positive operating cash flow in the Company's history, bringing second half operating cash flow to $577,000. Cash used in operations for fiscal year 2002 was $143,000, an improvement of $5.3 million compared with 2001, and $6.9 million compared with 2000. Fourth quarter cash collections were $6.5 million, representing 115% of the prior quarter's trade accounts receivable sales. The Company ended the year with $6.9 million in cash and cash equivalents, with no borrowing.

CEO Comments and Outlook:

Michael K. Perry, CardioDynamics' Chief Executive Officer, stated, "We are very pleased with our fourth quarter operating performance and overall results for 2002. Despite difficult economic conditions throughout the year, we grew the business a healthy 20% and achieved our first profitable year with positive operating cash flow in the second half. We are building a solid track record of success while branding our ICG technology as a standard of care in cardiovascular medicine. We are proud of our talented, dedicated, and cost-conscious team's ability to effectively balance near-term execution and long-term growth."

Perry added, "In addition to the excellent financial performance, the fourth quarter included sales to Pfizer Global Research and Development, a multi-year commitment from our Chinese distributor, several significant clinical presentations, a distribution agreement with SunTech, and recognition as the 103rd fastest growing technology company in North America. We also received the highest rating from the Institutional Shareholder Services (ISS) for corporate governance."

Perry concluded, "Within the estimated $17 billion cardiovascular technology market, there is a growing need for cardiovascular diagnostic tools. As strong as 2002 was for CardioDynamics, we are just beginning to penetrate our core markets and reap the benefits of our significant market potential. We feel confident that with the current noninvasive healthcare trends, the inherent strength of our business model, and our solid execution, we can make a genuine contribution to healthcare and create long-term, sustainable, growing value for our shareholders."

Additional Fiscal 2002 Highlights and Accomplishments:

Publication of three ICG studies in peer-reviewed journals:

-- Hypertension: Mayo Clinic study demonstrated a 70% superiority in treating previously uncontrolled high blood pressure with ICG monitoring, as compared to traditional management by high blood pressure specialist physicians.

-- The American Journal of Cardiology: Researchers from the University of Texas Southwestern Medical Center in Dallas demonstrated ICG's utility in the serial assessment of patients with heart failure, where detection of low cardiac output identifies high-risk patients and significantly alters intervention.

-- The Journal of Cardiothoracic and Vascular Anesthesia: The Study showed clinical equivalence between noninvasive ICG measurements and those obtained by the invasive Pulmonary Artery Catheter.

Distribution and Partnership Agreements:

-- Co-Development and OEM Agreement to combine CardioDynamics'

ICG technology with Philips' diagnostic 12-lead ECG

technology.

-- Distribution agreement with SunTech Medical Instruments, Inc.

for the sale of SunTech's ambulatory blood pressure monitor by

the Company's direct sales force and its distributors

throughout North, Central, and South America.

Awards:

-- Receipt of top rating from Institutional Shareholder Services

for corporate governance.

-- Ranking of 6th Fastest Growing Technology Company in Orange

County/San Diego, and 103rd Fastest Growing Technology Company

in North America on Deloitte & Touche Technology Fast 50 and

Fast 500, respectively.

Multi-Unit Sales:

-- Sale of BioZ Systems to Pfizer Global Research and Development

for its Research Clinic in the United Kingdom.

-- Multi-year BioZ commitment from Company's Chinese Distributor,

Beijing Changsheng Medical Technology Co., Ltd.

-- Multi-system sale to Saudi Arabia's Ministry of Health.

-- Several multi-system hospital sales, including Saint Joseph

Hospital, Lexington, KY; Good Samaritan Hospital, Los Angeles,

CA; Christus Santa Rosa Health Care, San Antonio, TX; and

Middletown Regional Health System, Middletown, OH.

Launch of ICG Web site: The Web site, www.impedancecardiography.com, serves as the primary source of ICG accredited education programs, policies and protocols for suggested use, case studies, published clinical evidence, and provides a forum for the exchange of topics related to clinical utilization of ICG in the treatment of chronic and acute diseases.

Clinical Presentations:

-- 6th Annual Heart Failure Society of America Meeting (HFSA) --

Two significant studies presented demonstrating diagnostic and

predictive value of ICG.

-- Continuing Medical Education Symposium -- Sponsored by the

University of Minnesota and chaired by William T. Abraham,

M.D., FACP, FACC, Professor of Medicine and Chief of the

Division of Cardiovascular Medicine, at The Ohio State

University Heart Center, Columbus, Ohio. The Symposium

included a presentation by Clyde W. Yancy, M.D., Medical

Director of Heart Failure/Heart Transplantation and Associate

Professor of Medicine, at the University of Texas Southwestern

Medical Center & St. Paul University Hospital, Dallas, Texas.

-- American College of Chest Physicians (ACCP) -- Arizona Heart

Institute study demonstrating CardioDynamics' BioZ parameters

associated with improvement in quality of life.

Election of Two New Board Members: Company's shareholders elected Ronald A. Matricaria, former CEO and Chairman of St. Jude Medical (STJ), and Peter C. Farrell, Chairman and CEO of ResMed (RMD), to its Board of Directors.

Conference Call and Webcast Information:

Michael K. Perry, Chief Executive Officer, and Steve P. Loomis, Chief Financial Officer, will host a summary of CardioDynamics' fourth quarter results and outlook for 2003 in a conference call today at 4:30 p.m. (EST). To access the conference call, dial 800/346-7359 (Code 7784). International participants can call 973/528-0008 (Code 7784). A replay of the call will be available for one month following the call at 800/332-6854 (Code 7784). The international replay number is 973/528-0005 (Code 7784). A Webcast of the call is available at http://www.irconnect.com/primecast/02/q4/cdic_4q2002.mhtml.

About CardioDynamics:

CardioDynamics (Nasdaq:CDIC), the ICG Company, is the innovator and global leader of breakthrough medical technology called Impedance Cardiography (ICG). The Company's primary products, the BioZ(R) Systems, are being used by leading physicians around the world to help battle the number one killer of men and women -- cardiovascular disease. Partners include GE Medical Systems Information Technologies, Philips Medical Systems, Spacelabs Medical Systems, and SunTech Medical Instruments, Inc. The worldwide market potential for BioZ products is estimated to be $5 billion and an additional $800 million in recurring annual revenue for disposables. For additional information or to request an investor package, please refer to the company's Web site at www.cdic.com.

Forward-Looking (Safe Harbor) Statement:

Note: Except for the historical and factual information contained herein, this press release contains forward-looking statements, such as estimated cardiovascular and ICG market size, potential, growth and penetration rates and the creation of future shareholder value, the accuracy of which are necessarily subject to uncertainties and risks, which include sole dependence on the BioZ product line, 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 2001 Form 10-K. The company does not undertake to update the disclosures contained in this press release.

                   CardioDynamics -- The ICG Company

Results From Operations:

                      Three Months Ended            Year Ended
                         November 30,              November 30,
                   ------------------------- -------------------------
                       2002         2001         2002         2001

Net Sales           $7,256,000   $5,922,000  $23,523,000  $19,598,000
Gross Margin         5,360,000    4,281,000   17,378,000   13,984,000
Research &
 Development           612,000      705,000    2,423,000    3,215,000
Selling & Marketing  3,831,000    2,923,000   13,124,000   10,184,000
General &
 Administrative        426,000      482,000    1,821,000    1,747,000
                   ------------------------- -------------------------
Income (Loss) from
 Operations            491,000      171,000       10,000   (1,162,000)
Other Income, net       63,000       83,000      301,000      504,000
Income Taxes                --           --       (1,000)      (1,000)
                   ---------------------------------------------------
Net Income (Loss)     $554,000     $254,000     $310,000    $(659,000)
                   ========================= =========================

Net Income (Loss)
 per Common Share:
  -- Basic and
      Diluted            $0.01        $0.01        $0.01       $(0.01)
                   ========================= =========================

Weighted-Average
 Number of Common
 Shares
 Outstanding:
  -- Basic          46,156,000   45,697,000   46,087,000   45,583,000
  -- Diluted        47,110,000   48,064,000   46,885,000   45,583,000
                   ========================= =========================



Selected Financial Information:

                            November 30,     November 30,   Percentage
                                2002             2001         Change

Cash & Cash Equivalents      $6,879,000       $6,394,000         8%
Accounts Receivable, net      8,349,000        7,373,000        13%
Inventory, net                3,474,000        2,902,000        20%
Total Current Assets         21,179,000       18,682,000        13%
Long-term Assets              2,387,000        2,779,000       (14%)
Total Assets                 23,566,000       21,461,000        10%
Current Liabilities           3,282,000        2,711,000        21%
Long-term Liabilities           560,000          327,000        71%
Total Liabilities             3,842,000        3,038,000        26%
Shareholders' Equity         19,724,000       18,423,000         7%