Cardiomedics Announces First Profitable Quarter and Chief Executive Appointment.

Business Editors and Health/Medical Writers

IRVINE, Calif.--(BUSINESS WIRE)--June 9, 2000

Cardiomedics, Inc. Friday announced record sales and its first profit in the quarter ended March 31, 2000.

Cardiomedics recorded a profit of $221,000 or $0.05 per share on revenues of $753,000 for the first quarter of this year. No income taxes were due as a result of loss carry-forward credits.

Cardiomedics also announced that its president, William R. Schilt, who has served as chief operating officer for the past eight years, has been appointed chief executive officer.

Marvin P. Loeb, chairman of Cardiomedics, said: "Bill Schilt has done an excellent job. He has proved he can make the company grow, increase sales and produce significant profits. We're happy to make him our chief executive officer."

Commenting on the financial results, Schilt said: "Revenues for the first quarter of 2000 were $753,000, compared to revenues of $1,986,000 for all of fiscal 1999. Most importantly, we were able to control our costs and produce a profit of $221,000 or $0.05 per share for the current quarter, compared to a loss of $115,000 or $0.03 per share for all of 1999. Our revenues are continuing to grow, and we fully expect to generate significant increases in sales and profits in the future."

Cardiomedics is the pioneer and the only U.S. manufacturer of advanced, portable, External Counter-Pulsation ("ECP") Systems. These non-invasive devices have been cleared for sale by the U.S. FDA for the treatment of angina (severe chest pain due to blockages in one or more of the coronary arteries), which affects an estimated 7 million people in the United States.

Cardiomedics' ECP Systems enable severe angina patients to be treated on an outpatient basis in hospitals and physicians' offices. The cost of the therapy is covered by Medicare and more than 140 insurance companies and prepaid health plans.

Cardiomedics' ECP System has also been cleared for sale by the U.S. FDA for the treatment of acute myocardial infarctions (heart attacks), the largest single cause of death in the United States, as well as cardiogenic shock, the most severe complication of a heart attack.