Cryomedical Sciences Completes $5.7 Million Financing.

Business Editors & Health/Medical Writers

EWING, N.J.--(BUSINESS WIRE)--May 24, 2000

Cryomedical Sciences Inc. (NASDAQ: CMSI), announced today that it has raised $5.7 million in a private placement of units consisting of common stock and warrants. The offering, led by de Greef & Company, an international financial advisory firm located in Irvine California, was placed with a group of U.S. and Swiss medical technology investors. In addition, Richard J. Reinhart, Ph.D., President and CEO of CMSI, and John G. Baust, Ph.D., Senior Vice President, Research and Development of CMSI, also participated in the placement.

In connection with the placement, the Company (a) has agreed to effectuate a one for five reverse stock split of its common stock, (b) has cancelled its "poison pill," and (c) will expand its Board of Directors to include Roderick de Greef, the principal of de Greef & Company, and Raymond Cohen, a medical device marketing expert who is currently the President and CEO of Cardiac Sciences, Inc. (OTCBB: DFIB), the developer of the only fully automatic external defibrillator. The Company also intends to apply for listing on either the American Stock Exchange or the NASDAQ SmallCap Market, subject to satisfying applicable listing requirements.

On a pre-reverse stock split basis, the Company sold 11,220,000 units at a price of $.51 per unit. Each unit consisted of two shares of restricted common stock and one warrant to purchase an additional share of the common stock by March 31, 2001 at a pre-reverse stock split price of $.25. After the reverse stock split the Company will have issued and outstanding approximately 12,500,000 shares of Common Stock and on a fully diluted basis approximately 18,660,000 shares of Common Stock.

Richard J. Reinhart, Ph.D., President and CEO of CMSI stated, "The proceeds from this financing will allow the Company to fund the development and launch of the new Accuprobe(R) 800 series introduced this month at the American Urological Association meeting, fund clinical studies for the Company's subsidiary, Biolife Solutions, Inc., in the area of human tissue preservation and organ transplantation, and seek strategic relationships with other major companies in both the cryosurgical and preservative solution markets. Coupled with the recent relocation of its headquarters to New Jersey and the hiring of additional key personnel, the foundation for future growth is being established. Our new investor group has a demonstrated long term, value based investment philosophy, which will allow the company's management to focus on achieving key milestones that we believe will result in an increase in revenues and the generation of profits."

Cryomedical Sciences, Inc. is the leader in the field of cryosurgical devices that ablate unwanted tissue in minimally invasive procedures. The Company's CMS AccuProbe(R)System has been cleared for marketing in the U.S. in the fields of urology, oncology, general surgery, gynecology and neurology, among others. BioLife Solutions, Inc. is a wholly owned subsidiary of CMSI formed in March 1998 for the purpose of commercializing the CMSI preservative solutions.

This release contains forward-looking statements, including but not limited to securing additional equity funding, development and commercialization of new technology, inroads into marketplaces, enhancements of sources of revenues and technological competitive advantages. The actual results that the Company achieves may differ materially form 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 the 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.