Computer Motion Announces Record Quarterly and Full Year Revenues; Significant Progress Achieved with the AESOP, HERMES and ZEUS Product Families.

SANTA BARBARA, Calif.--(BW HealthWire)--February 5, 1998--Computer Motion, Inc. (NASDAQ National Market: RBOT), the world leader in medical robotics, announced today record quarterly revenues for its fourth quarter ended December 31, 1997. Revenues for the quarter totaled $2,070,000, a 34% increase from revenues of $1,545,000 in last year's fourth quarter. For the full year 1997, revenues of $6,611,000 were up 63% from last year's comparable period. Gross profit of $1,260,000 for the quarter was also a record and up 126% from last year's fourth quarter. Gross profit of $3,748,000 for the full year 1997 was up 162% from the prior year. Revenues and gross profit also increased in each quarter of 1997, with fourth quarter revenues and gross profits up 23% and 25%, respectively over third quarter levels.

The revenue gains resulted from increased sales of the Company's AESOP robotic endoscope positioning system which were up 30% in the fourth quarter despite weak sales in the Pacific Rim, and up 81% for the year. The Company's AESOP 2000 with Voice Control, which was introduced in the fourth quarter of 1996, has been the principle factor in increased AESOP revenues. Late in the fourth quarter of 1997, the Company began shipping its AESOP 3000 with Voice Control. The fourth quarter 1997 also included a 50% increase in revenue derived from the Company's ZEUS product line.

Robert W. Duggan, Chairman of the Board and CEO of Computer Motion said, "The market continues to embrace our robotic endoscope positioning technology. The Company's AESOP 3000 with Voice Control, which is optimized specifically for cardiac surgery, was cleared by the Food and Drug Administration in late December, and we expect this product to drive significant revenue increases in 1998."

Net losses for the fourth quarter and full year 1997 were $2,123,000 and $9,219,000, respectively. These results were negatively impacted by non-cash compensation charges relating to below market value grants of stock, warrants and options of $119,000 in the fourth quarter and $1,057,000 for the full year 1997, as well as non-recurring, non-cash interest costs attributable to a fixed conversion feature of a convertible debenture and warrants issued with certain notes payable of $1,442,000 for the full year 1997.

The Company continues to progress with its development of the HERMES Operating Room Control Center, a technology platform designed to enable a surgeon to directly control multiple operating room devices through simple verbal commands, and the ZEUS Robotic Surgical System comprised of three robotic arms, one of which positions an endoscope through verbal commands and two of which enhance the surgeon's capability to manipulate surgical instruments in performing complex minimally invasive procedures such as endoscopic coronary artery bypass grafting (E-CABG).

Mr. Duggan further stated, "The management team at Computer Motion is very pleased with its progress and performance during the fourth quarter of 1997. The stage has been set for significant growth in the acceptance and utilization of our computer and robotic technology. The market for endoscopic and minimally invasive surgical procedures is significantly large and continues to grow all over the world."

"In the past few weeks we announced two significant world firsts. At the Facts and Myths of Minimally Invasive Cardiac Surgery symposium, held immediately prior to the Society of Thoracic Surgeons 34th Annual Meeting in New Orleans, LA, Dr. Ralph J. Damiano, Jr., Chief of Cardiac Surgery at the Milton S. Hershey Medical Center, presented on his successful results using Computer Motion's ZEUS Robotic Surgical System to perform endoscopic coronary artery bypass grafts (heart bypass surgery) on two bovine (calf) models. The ZEUS System incorporates the Company's proprietary computer, robotic, haptics (force feedback) and speech recognition technologies to enable microscopic minimally invasive surgery. The System allows the operating surgeon to be comfortably seated while remaining sterile, greatly enhances surgeon dexterity while eliminating hand tremor and offers the advantage of computerized motion scaling. An example of motion scaling is where a one inch movement of the surgeon's hand is scaled and translated to a 1/10 inch movement at the robotic instrument tip."

"At Tenet Healthcare Corporation's San Ramon Regional Medical Center, Dr. Carlos Gracia successfully performed a series of minimally invasive surgeries using Computer Motion's HERMES Operating Room Control Center which incorporates the Company's proprietary speech recognition technology. The HERMES System allows surgeons to have direct control over key operating room devices and equipment using simple verbal commands. The System also provides for audible voice and visual (on a video monitor) feedback to the surgeon and operating room team."

Computer Motion has pending multiple 510(k) applications for the HERMES OR Control Center and the voice control of a number of HERMES-compatible medical devices with the Food and Drug Administration. The Company also plans to initiate the process for obtaining FDA clearance to market the ZEUS System later this year.

Computer Motion develops, manufactures and markets proprietary robotic and computerized surgical systems for the operating room. The Company's mission is to enhance surgeons' capabilities, improve outcomes and reduce costs using computers and robotics. The Company is developing new products that leverage the core technologies underlying the AESOP family of products: the ZEUS Robotic Surgical System for new minimally invasive microsurgery procedures such as endoscopic coronary artery bypass grafting (E-CABG); and the HERMES OR Control Center, a centralized control and operating system designed to control an integrated network of 'smart' operating room devices through a surgeon's voice commands. Computer Motion is traded on the NASDAQ National Market under the stock symbol RBOT. The Company's Internet Web site is www.ComputerMotion.com.

This press release contains forward-looking statements concerning the Company's business, products and research and development activities. Actual results may differ materially depending on a number of risk factors, including the risks of competition and competing technologies, duration or suspension of pre-clinical and clinical studies, regulatory approvals and physicians and/or payors acceptance of the Company's new 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 Registration Statement of Form S-1 and Quarterly Report on Form 10-Q for the period ended September 30, 1997. 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. -0-

                      COMPUTER MOTION, INC.
               CONDENSED STATEMENTS OF OPERATIONS
                          (UNAUDITED)


                           Three Months Ended       Full Year Ended
                              December 31,            December 31,
                             1997       1996        1997       1996

Revenue                 $2,070,000  $1,545,000  $6,611,000  $4,057,000
Cost of revenue            810,000     988,000   2,863,000   2,627,000
Gross profit             1,260,000     557,000   3,748,000   1,430,000
Selling, general
 and administrative
  expense                2,174,000   1,500,000   7,790,000   4,144,000
Research and
 development expense     1,677,000     393,000   4,149,000   1,359,000
Loss from operations    (2,591,000) (1,336,000) (8,191,000) (4,073,000)
Other expense (income)    (481,000)    277,000   1,015,000     485,000
Loss before income taxes(2,110,000) (1,613,000) (9,206,000) (4,558,000)
Provision for taxes         13,000       1,000      13,000       1,000
Net loss               ($2,123,000)($1,614,000)($9,219,000)($4,559,000)
Weighted average shares
 outstanding used to
  compute net loss per
   share                 8,767,000   2,833,000   5,454,000   2,835,000
Net loss per share          ($ .24)     ( $.57)     ($1.69)     ($1.61)

CONTACT: Computer Motion, Inc.

Stephen L. Wilson

Executive Vice President/CFO

805/968-9600, ext. 155

or

Computer Motion, Inc.

Holley Malia

Corporate Relations Manager

805/968-9600, ext. 179