CardioVascular Dynamics Completes Technology Transfer With Guidant.

IRVINE, Calif.--(BW HealthWire)--Nov. 17, 1998--CardioVascular Dynamics Inc. (Nasdaq: CCVD)(CVD) Tuesday announced it has completed the transfer of CVD's Focus Technology to Guidant Corp.'s (NYSE: GDT) Vascular Intervention Group.

Under the terms of the licensing agreement signed in June 1998, Guidant can market CVD's patented Focus Technology in products designed to deliver Guidant coronary and peripheral vascular stents. Guidant has exclusive rights to use the Focus Technology for stent delivery in the United States and Canada.

For all other territories, Guidant's rights to use Focus Technology for stent delivery are co-exclusive with CVD. CVD continues to sell Focus Technology for balloon dilatation procedures in the United States and for all applications in overseas markets.

In return, Guidant will make a series of payments linked to CVD based on CVD's transfer of manufacturing technology and expertise to Guidant. CVD also will receive royalties on sales of products combining Focus Technology with Guidant's stent.

During conventional stent delivery, the dilatation force required to deliver the stent is distributed over the entire length of the stent, directing the dilatation force not only at the diseased site but also upon the adjacent vessel wall.

In contrast, CVD's Focus Technology is designed to "focalize" the majority of the dilatation force required to deliver the stent more directly to the lesion site to spare the surrounding arterial wall from potentially damaging balloon dilatation force.

Jeffrey O'Donnell, CVD's president and chief executive officer said: "CVD has not only met but has exceeded Guidant's expectation by completing this transfer of technology ahead of schedule. With this transfer complete, we now are free to direct our efforts to developing new technologies at CVD."

CVD develops peripheral and coronary stents, coronary stent delivery systems, balloon dilatation catheters for coronary and peripheral vascular use and site-specific drug delivery catheters.

Except for historical information contained herein, this news release contains forward looking statements, the accuracy of which are necessarily subject to risks and uncertainties. Actual results may be affected by, among other things, risks and uncertainties related to new product development and introduction cycles by the company or its licensees, research and development activities, including failure to demonstrate clinical efficacy, delays by regulatory authorities, scientific and technical advances by CVD or third parties, introduction of competitive products, third party reimbursement and physician training, and other risk factors and matters set forth in the company's Form 10-K for the year ended Dec. 31, 1997 and the company's Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 1998.