CardioDynamics Reports Record Sales of $1.528 Million for Second Quarter 1999 and Sixth Consecutive Quarterly Sales Increase.

SAN DIEGO--(BW HealthWire)--June 24, 1999--

CardioDynamics International Corp. (CDIC) (Nasdaq:CDIC), manufacturer of BioZ(R) noninvasive digital cardiac output monitoring systems, today reported record sales for its second fiscal quarter ended May 31, 1999. It was the company's sixth consecutive quarterly sales increase.

Second Quarter Results:

Net sales for the second quarter of fiscal 1999 were $1,528,000, an increase of 220% over sales of $478,000 for the same period in fiscal 1998, and a 42% increase from its first quarter 1999 sales of $1,075,000. Net loss to common shareholders for 1999's second quarter was $797,000, or $0.02 per share, down 43% from $1,391,000, or $0.04 per share for the same period in 1998, and down 29% from the net loss to common shareholders of $1,128,000, or $0.03 per share, reported in the first quarter 1999.

The company attributed the reduced net loss to common shareholders in the second quarter to improved operating efficiencies resulting from increased sales combined with ongoing efforts to improve its cost structures. This marks the third consecutive quarterly reduction in net loss.

Operating Highlights:

The company credited the strong second quarter sales growth to the focused sales efforts of its domestic sales force and international distributor network, the positive effects of Health Care Financing Administration's (HCFA) decision mandating full nationwide Medicare reimbursement coverage, and the growing healthcare community's recognition of the validity and clinical usefulness of the BioZ's Thoracic Electrical Bioimpedance (TEB) technology.

During the second quarter 1999, the company shipped 63 BioZ monitoring systems (50 systems to domestic end-users and 13 to international distributors), including sales to the Mayo Clinic (Rochester), Wake Forest University (Winston-Salem), University of Kentucky (Lexington), Hillcrest Medical Center (Tulsa), and multiple systems to Baylor University Medical Center (Dallas) and Cook County Hospital (Chicago).

The company plans to continue the expansion of its domestic sales force and international distribution network. As of May 31, 1999, the company had 21 domestic sales representatives and 17 distributors in 31 countries marketing the BioZ systems. The company intends to increase the domestic sales force to a total of 25 and have international distributors in over 40 countries by fiscal year end.

CEO Comments:

Commenting on the results, Michael K. Perry, chief executive officer of CardioDynamics stated, "We are very delighted with the record sales results and sales growth during the second quarter. Additionally, we were delighted to complete a $5 million equity financing during the quarter which will provide the necessary capital to further grow the company. Entering our third quarter, we currently have over 200 customers using our BioZ systems and we expect this number to increase significantly during the second half of the fiscal year. Momentum is building as the BioZ gains broader acceptance and as physicians recognize our technology's significant role in providing a noninvasive solution to improving patient care and reducing escalating healthcare costs."

Company Summary:

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, Portable BioZ(TM) and BioZ.com(TM), utilize its proprietary Thoracic Electrical Bioimpedance (TEB) technology to noninvasively obtain data on a wide range of hemodynamic parameters. The worldwide market potential for the BioZ(R) products is estimated to be $4 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. -0-

                  CardioDynamics International Corp.

Results of Operations:
(Unaudited)
                          Three Months Ended      Six Months Ended
                               May 31,                 May 31,
                          1999        1998        1999         1998

Net Sales             $1,528,481    $477,726   $2,603,407    $625,238
Gross Profit Margin      970,154     186,117    1,638,009     139,660
Loss from Operations    (705,011) (1,376,921)  (1,757,426) (2,689,078)
Net Loss                (781,331) (1,390,571)  (1,893,248) (2,679,125)
Net Loss to Common
 Shareholders           (796,736) (1,390,571)  (1,924,968) (2,679,125)

Net Loss per Common
Share, Basic and
 Diluted                  $ (.02)     $ (.04)      $ (.06)     $ (.08)
Weighted-Average
 Number of
 Common Shares
 Outstanding          33,053,278  32,100,743   32,879,748  32,093,408


Selected Financial Information:

                               May 31,        November 30,    Change
                                1999             1998
                             (Unaudited)       (Audited)

Cash                         $5,393,990      $2,633,086        105%
Current Assets                8,758,191       4,341,869        102%
Current Liabilities           2,485,588       3,004,534        (17%)

Total Assets                  9,056,223       4,648,885         95%
Total Liabilities             5,348,907       4,116,749         30%