Cryomedical Sciences, Inc., Discloses Details of Medicare Coverage of Cryosurgery of the Prostate for Claims Made With Dates of Service On or After July 1, 1999.

ROCKVILLE, Md.--(BUSINESS WIRE)--April 23, 1999--

Cryomedical Sciences, Inc.,(OTC BB:CMSI) (CMSI) disclosed that the Health Care Finance Administration (HCFA) issued a Program Memorandum regarding billing and payment requirements for claims for cryosurgery of the prostate gland with dates of service on or after July 1, 1999.

The memorandum specified two codes that are to be used to indicate that the cryoprocedure was rendered. These codes relate specifically to cryoablation of localized prostate cancer, primary treatment only, and ultrasonic guidance for interstitial cryosurgical probe placement. The HCFA definition of crysurgery of the prostate gland includes cryoablation of prostate, cryoprostatectomy of prostate, and radical cryosurgical ablation of prostate according to the memorandum.

Richard J. Reinhart. Ph.D. president and CEO of CMSI stated, "We are pleased to see that HCFA is moving forward on the issuance of guide lines and codes regarding cryosurgery of the prostate. In spite of beliefs to the contrary, it should be noted that there is no specificity regarding the type of cryosurgical equipment that may be used in the performance of the procedure. The existing CMSI installed customer base, as well as CMSI, is now waiting for definitive information regarding the reimbursement levels that HCFA will assign to these new codes for claims submitted for cryosurgery of the prostate. Although the recent Program Memorandum did not address this issue, the Company anticipates that HCFA will issue the specifics of reimbursement levels shortly."

Dr. Reinhart further stated, "There is significance to the July 1, 1999 date given that sources throughout HCFA have suggested that systems changes made during the second half of the year may not be implemented on a timely basis due to Y2K problems. Therefore, it is encouraging that HCFA is moving forward with a July 1, 1999 implementation date, which should avoid these potential systems problems. The codes presently issued by HCFA use alphanumeric nomenclature typically used as precursors to permanent codes issued under the American Medical Association's (AMA) CPT coding system. Upon HCFA's issuance of the reimbursement levels and AMA's establishment of permanent codes, it will then be possible for physicians and patients to make informed decisions regarding the financial consequences of electing to have the cryo-procedure performed as opposed to other procedures."

This release contains forward-looking statements, including but not limited to favorable changes in government regulations, inroads into marketplaces and enhancements of sources of revenues and technological competitive advantages. The actual results that the Company achieves may differ materially from any forward-looking statements due to many factors, including acceptance of the Company's products, the impact of competitive products and pricing, market conditions, government regulations, and the risks and uncertainties discussed in the Company's Annual Report on Form 10-KSB and other reports filed with the Securities and Exchange Commission. Such risk factors include, but are not limited to, operating history of the Company with a history of losses; fluctuations in the Company's order levels; uncertainty of product development and risks related to clinical trials; the rapid pace of technological change in the Company's industry; and uncertainty relating to third party reimbursement and regulatory matters.