CardioVascular Dynamics Reports 29 Percent Revenue Increase.

IRVINE, Calif.--(BW HealthWire)--Oct. 29, 1998--CardioVascular Dynamics Inc. (Nasdaq:CCVD) (CVD) Thursday reported a 29 percent increase in total revenues for the third quarter ended Sept. 30, 1998, to $3,313,000, compared with $2,569,000 in the third quarter last year.

Revenues for the most recent quarter included $1.2 million in fees received under a licensing agreement for CVD's focal stenting technology. Net loss for the third quarter was $1,369,000, or $0.16 per share, compared with $2,066,000, or $0.23 per share, in the comparable period in 1997.

For the nine months ended Sept. 30, 1998, revenues were $8,636,000, compared with $8,943,000 for the same period last year. The company reported a net loss for the nine-month period of $5,193,000, or $0.59 per share, compared with $3,253,000, or $0.36 per share, last year.

"Our results for the quarter are in line with expectations," said Jeffrey O'Donnell, CVD's president and chief executive officer. "Product sales declined, but were more than offset by our strategy to license the focal technology. This now is allowing us to direct all of our efforts on developing new technologies.

"During the quarter we were extremely busy, working to complete the technology transfer to Guidant, fulfilling a radiation product development project with Mallinckrodt, and building a focused game plan that will drive our growth going forward. To this end, we signed a letter of intent to acquire Radiance Medical Systems Inc., as part of our ongoing mission to develop leading-edge technologies for the interventional cardiology market.

"CVD intends to combine its experience in advanced delivery systems with Radiance's focus in radiation delivery to develop safe and effective treatments for coronary blood vessels using radiation therapy."

CVD also announced that its board of directors approved an increase in its previously announced stock repurchase program to an aggregate of 1 million shares, of which 686,000 shares have already been purchased.

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 for the delivery of radiation to prevent reoccurrence following the interventional treatment of atherosclerosis.

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 the potential acquisition of Radiance Medical Systems Inc., new product development and introduction cycles, 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 June 30, 1998. -0-

                     CARDIOVASCULAR DYNAMICS INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (In thousands, except per-share amounts)
                              (Unaudited)

                        Three Months Ended    Nine Months Ended
                             Sept. 30,            Sept. 30,
                         1998(a)     1997      1998(a)     1997

Revenue:

Sales                 $ 2,108    $ 2,569     $ 7,031    $ 8,943
License revenue         1,205         --       1,605         --

Total revenue           3,313      2,569       8,636      8,943
Cost of sales           1,692      1,405       4,339      4,392

Gross profit            1,621      1,164       4,297      4,551
Operating expenses:
Research, development
 and clinical           1,579      1,595       5,038      3,507
Marketing and sales     1,238      1,802       3,801      4,838
General and
 administrative           665        464       1,855      1,265
Minority
 interest                 (68)        --         (68)        --
  Total operating
     expenses           3,414      3,861      10,626      9,610
Loss from operations   (1,793)    (2,697)     (6,329)    (5,059)

Other income (expense):
 Interest income          395        577       1,202      1,727
 Other income (expense)    29         54         (66)        79
    Total other income    424        631       1,136      1,806

Net loss              $(1,369)   $(2,066)    $(5,193)   $(3,253)

Basic and diluted
 net loss per share   $ (0.16)   $ (0.23)    $ (0.59)   $ (0.36)

Shares used in computing
 basic and diluted
 net loss per share     8,854      9,107       8,857      9,098

(a) In September 1998, the company exercised warrants to purchase an
additional 1.5 million Preferred series B shares in Radiance Medical
Systems Inc. Following this exercise, CVD owned approximately 50
percent of the outstanding equity of Radiance. As a result, the
company is reporting combined results with Radiance following the
aforementioned exercise.