CardioDynamics Reports Record 247% Sales Increase in Fiscal Year 1999 and Eighth Consecutive Quarterly Sales Increase.

Business Editors/Health and Medical Writers

SAN DIEGO--(BW HealthWire)--Jan. 18, 2000

Company Fulfilling Critical Need for Accurate Noninvasive Heart

Monitors

CardioDynamics International Corp. (Nasdaq:CDIC), manufacturer of BioZ(R) noninvasive digital cardiac output monitoring systems, today announced a record 224% sales increase in the fourth quarter 1999, and 247% sales increase for fiscal year ended Nov. 30, 1999.

This marks the eighth consecutive quarter of increased sales, and fifth consecutive quarter of reduced net loss to Common Shareholders, exclusive of non-cash charges.

1999 Fourth Quarter and Year-End Results:

Net sales for the fourth quarter of fiscal 1999 were $2,604,000, an increase of 224% over sales of $803,000 for the same period in fiscal 1998. Net sales for fiscal year 1999 were $7,281,000, an increase of 247% over sales of $2,099,000 reported for fiscal year 1998. Gross margins for the fourth quarter of fiscal 1999 increased to 65%, up from 49% in the same quarter of fiscal 1998. For the full fiscal year, gross margins increased to 64%, compared with 43% in 1998.

Net loss to Common Shareholders in fourth quarter 1999 was $567,000, or $0.01 per share, down 59% from a net loss to Common Shareholders of $1,386,000, or $0.04 per share, reported for fourth quarter 1998. Exclusive of non-cash charges reported in the third quarter 1999 totaling $1,034,000 related to warrants issued to GE Marquette and elimination of the company's convertible preferred stock, the net loss to Common Shareholders for fiscal 1999 was $3,185,000, or $0.09 per share, down 41% from fiscal 1998's loss of $5,358,000, or $0.17 per share. Including the non-cash charges, the company reported a net loss to Common Shareholders of $4,219,000, or $0.12 per share, in fiscal 1999.

Operating Highlights:

The company attributed the strong increase in 1999 sales and progressive quarterly sales increases to the growing awareness of the availability and clinical usefulness of its proprietary technology, which improves patient care and reduces healthcare costs. The growing awareness is the direct result of an 80% expansion of its domestic direct sales force, continued growth of its international distributor network, and the recent strategic alliance with GE Marquette Medical Systems.

CEO Comment and Outlook:

Commenting on the results, Michael K. Perry, CardioDynamics' chief executive officer, stated, "Fiscal 1999 was an outstanding year for CardioDynamics, including tripling of sales, significantly increasing gross margins, forming a strategic alliance with one of the leading diagnostic cardiology and patient monitoring companies in the world, GE Marquette, and substantially improving our capital structure. The partnership with GE Marquette considerably increases our sales presence in hospitals in the United States and Europe, and we anticipate launching a technology partnership during fiscal 2000, which will enable our noninvasive measurements to be integrated into GE Marquette's patient monitoring and diagnostic cardiology product platforms. The company strengthened its capital structure during calendar 1999 by successfully raising $5.2 million in a common stock private placement, completing an additional $3.3 million common stock private placement to a group of European institutional investors, and eliminating the convertible preferred stock."

Perry added, "We are entering the millennium with a focus on our Internet-based medical product family, BioZ.net, which provides a foundation for development of our telemedicine business. This focus advances the company into the estimated $25 billion emerging Internet medical market. We look forward to continuing to execute an aggressive business strategy that will further the rapid adoption of our proprietary technology."

Company Description:

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.cdic.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(R) 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.

                  CardioDynamics International Corp.

Results of Operations:

                       Three Months Ended          Fiscal Year Ended
                      Nov. 30, (Unaudited)         Nov. 30, (Audited)
                    1999              1998        1999           1998

Net Sales     $2,604,000          $803,000  $7,281,000     $2,099,000
Gross Margin   1,686,000           390,000   4,682,000        901,000
Loss from
Operations      (511,000)       (1,318,000) (3,274,000)    (5,224,000)
Net Loss        (567,000)       (1,364,000) (3,993,000)    (5,335,000)
Net Loss to
Common
Shareholders    (567,000)       (1,386,000) (4,219,000)    (5,358,000)

Net Loss per
Common Share,
Basic and
Diluted           $ (.01)            $(.04)      $(.12)         $(.17)
Weighted-Average
Number of Common
Shares
Outstanding   39,888,811        32,179,283  36,296,495     32,117,853

Selected Financial Information:

(Audited)
                           Fiscal Year Ended
                                Nov. 30
                                      1999        1998         Change

Cash                            $2,406,000  $2,633,000             -9%
Current Assets                   8,093,000   4,342,000             86%
Current Liabilities              4,504,000   3,005,000             50%
Working Capital                  3,589,000   1,337,000            168%

Total Assets                     8,497,000   4,649,000             83%
Total Liabilities                5,854,000   4,117,000             42%