Computer Motion Announces Preliminary Third Quarter Revenues Up 75% Versus Previous Quarter.

Business Editors/High-Tech & Medical Writers

SANTA BARBARA, Calif.--(BUSINESS WIRE)--Oct. 8, 2001

3rd Quarter Conference Call Scheduled for Tuesday,

October 16 at 1:30 p.m. PT;

Simultaneous Webcast to be Found at www.ComputerMotion.com

Computer Motion, Inc. (Nasdaq:RBOT), the worlds leading developer of surgical robotic systems, today announced preliminary revenue results for the third quarter of fiscal year 2001 ended September 30. Net revenue was slightly in excess of $7,000,000 as compared to $4,003,000 recorded in the second quarter of fiscal year 2001 ended June 30 and $6,211,000 recorded in the third quarter of 2001. Third quarter revenue grew 75% as compared to the second quarter of 2001 and 13% when compared to the third quarter of 2000.

"We are pleased with our revenue growth in the third quarter. The company's newly instituted emphasis on selling an integrated system of products is being well received by the medical community. Our customers realize that Computer Motion's suite of products provide solutions that enable a new era of patient friendly surgery and have a positive impact on the hospital's top and bottom line," stated Robert W. Duggan, Chairman and CEO.

Duggan continued, "These results were achieved in the face of being able to ship the `New Zeus' with MicroWrist and articulation for only the last two weeks of the quarter. We believe that our improved results can be directly attributed to the acceptance of our New Zeus and our ability to capitalize on unique clinical procedural knowledge in the field of medical robotics. For the first time in the company's history, education and training revenue is part of every large transaction."

For the quarter, Computer Motion ZEUS(R) billings grossed $3,600,000 with four systems placed, three of which were New Zeus systems. Additionally, we delivered three New Zeus upgrades. AESOP(R) billings grossed $2,900,000 with thirty-five systems placed. HERMES(TM) system billings and recurring revenue of supplies, accessories, and service grossed $1,500,000. Deferrals for the third quarter are expected to be about $1,000,000, deducted from gross billings yielding net revenues of approximately $7,000,000.

Computer Motion also announces that two vice presidents were hired during the quarter. David Munjal, Ph.D., joined CMI as Vice President of Clinical Affairs, Regulatory Affairs, and Quality Assurance. In this capacity he will be reporting to Darrin Uecker, Chief Operating Officer. Dr. Munjal comes to Computer Motion from BioEnterics Corporation, where he served as Director of Clinical Research & Regulatory Affairs for approximately four years. During this time he was responsible for clinical and regulatory functions of the company worldwide, managed and completed clinical trials, made regulatory FDA submissions of Pre-Market Approval (PMA) applications, and achieved approval of the class III implantable medical device, LAP-BAND System for morbidly obese patients. Prior to this, Dr. Munjal worked for nine years as Corporate Director of Clinical Research for Meadox Medical/Boston Scientific Corporation, New Jersey, again with worldwide responsibilities to manage clinical affairs of the company. During this time, he was actively involved in completion of clinical trials, FDA submissions and approval of class II and III implantable medical devices, vascular grafts/endoprosthesis, stents, guide wires & catheters used for the aneurismal and occlusive disease.

Stephen Pedroff joined Computer Motion as Vice President of Corporate Relations. Pedroff brings over twenty years of extensive marketing communications, public relations, and business development experience to Computer Motion. As the previous owner of a public relations and marketing consultancy firm, Pedroff created successful communications campaigns for clients including MCI, General Motors, McGhan Medical, and Fujitsu.

The company also announces that Gordon Rogers has resigned as Chief Financial Officer. Larry Redfern, CPA, will act as interim Chief Financial Officer. A search is currently underway to fill this position on a permanent basis.

Computer Motion will host a teleconference call October 16th at 1:30 pm PT (4:30 pm ET) to discuss its results for the third quarter. A live Webcast will be available at www.ComputerMotion.com. For parties interested in a replay of the call, a digital playback will be available through October 30th, 2001 at 706-645-9291/800-642-1687. An archive of the Webcast will also be available until October 30th, 2001 at www.ComputerMotion.com.

Computer Motion is a high-tech medical device company evolving surgical practices to enhance patient's lives. The company develops, manufactures and markets proprietary computer-enhanced and robotic surgical systems, which enhance surgeons' capabilities, improve outcomes and reduce costs. Computer Motion plays a significant role in transitioning the surgical community from current open procedures to increasingly demanded endoscopic procedures. Computer Motion's products include the ZEUS(R) robotic system for new minimally invasive microsurgical procedures, such as endoscopic beating heart bypass surgery, and the HERMES Control Center, a centralized system that enables the surgeon to voice control a network of "smart" medical devices. The AESOP Robotic Endoscope Positioner is the first FDA-cleared surgical robot, and the ZEUS(R) Robotic Surgical System is CE-Marked for commercial sale in the European Community. Computer Motion has completed an FDA-approved Phase 1 Investigational Device Exemption (IDE) coronary bypass study and has initiated an IDE mitral valve surgery, general laparoscopic and thoracic studies with the ZEUS system. Also, the company has begun the second phase of its tubal reanastomosis study. The company's Web site is www.ComputerMotion.com.

This press release contains forward-looking statements concerning the company's business and products. Actual results may differ materially depending on a number of risk factors, including the risks of competition and competing technologies, duration or suspension of clinical studies, regulatory clearances and approvals, and physician, hospital and payor acceptance of the company's products. These factors and other risks inherent in the company's business are described from time to time in the company's Securities and Exchange Commission filings, including its Annual Report on Form 10-K. The company undertakes no obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.