Cardiovascular Dynamics receives cash payment from Japanese partner for distribution rights to selected products.

IRVINE, Calif.--(BUSINESS WIRE)--July 27, 1995--Cardiovascular Dynamics, Inc. (CVD), a subsidiary of Endosonics Corporation (NASDAQ:ESON) today reported that it received a cash payment of $750,000 from CVD's Japanese distributor, Fukuda Denshi Co. Ltd. In return for this cash payment, CVD has awarded Japanese distribution rights to Fukuda for CVD new products for peripheral vascular, neurovascular and non-vascular clinical applications.

CVD is in the final stages of developing its core membrane technologies for drug delivery, balloon angioplasty combined with drug delivery and vascular stent delivery for peripheral vascular, neurovascular and non-vascular markets (i.e. gastrointestinal and urological applications). CVD plans to finalize the development of these products and begin worldwide marketing, including Japan, in 1996.

This agreement does not involve CVD's coronary products. Fukuda is CVD's Japanese distributor for coronary products and has submitted an application to the Japanese Ministry of Health (MOH) for approval to market CVD's CAT (Controlled Angioplasty Technology) PTCA catheters.

Commenting on this Agreement, CVD Chairman Michael Henson said, "Fukuda Denshi has been our Japanese partner, equity investor and distributor for over six years. This new agreement both provides additional capital to assist CVD's growth and further solidifies the relationship between Fukuda and CVD."

CVD develops and markets site-specific drug delivery catheters, combined angioplasty-drug delivery catheters and advanced therapeutic catheters.

CONTACT: Cardiovascular Dynamics Inc.

Michael Henson, 714/457-9546