Gargiulo Group Issues BUY on World Heart Corporation Common -- see note "a" below.

NEW YORK--(BUSINESS WIRE)--Feb. 18, 1997--The Gargiulo Group, a division of Oscar Gruss & Son Inc., has initiated coverage of World Heart Corp. (NASDAQ:WHRTF), Ottawa, Canada, with a BUY recommendation.

World Heart Corporation is a development stage medical devices company serving the cardiovascular market. World Heart is currently developing HeartSaver VAD(R), the first pulsative ventricular assist device (VAD) designed to be permanently placed entirely inside the chest cavity, alongside the natural heart.

The design of the device intends to significantly reduce or eliminate adverse effects such as the incidence of infection and blood coagulation, the reduction of which would have the potential for significantly increasing the longevity of the patient. Unique attributes such as remote monitoring and powering of the device will facilitate the patient's return to a relatively normal lifestyle.

Accordingly, the HeartSaver VAD(R) could become a workhorse implantable cardiac device addressing a potential $3.6 billion market.

Though Gene Gargiulo, Senior Managing Director of Gargiulo Group, projects losses during development through the year 2000, the potential clinical effectiveness of this device combined with the potential for revenues and earnings cause him to rate the stock a BUY.

In the near term, Mr. Gargiulo expects World Heart's stock price to respond to milestones that may be achieved along the development schedule described in his report. He gives details of World Heart's markets, products, management, development schedule, and his valuation model in this 16-page report which can be obtained from Gargiulo Group at 212/952-1220.

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Note "a" -- During the past three years, Oscar Gruss & Son Incorporated has performed investment banking services for World Heart Corp., and currently makes a market in this security and may have a long or short position in connection with this activity.

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Investment Ratings: STRONG BUY: expected total annual return of greater than 25% over the next 12-18 months; BUY: expected total annual return in the range of 15-25% over the next 12-18 months; HOLD: stock is fairly valued and should provide returns which approximate returns expected from the broad market over the next 12-18 months; UNATTRACTIVE: stock is overvalued based on current and projected E.P.S., cash flow and dividend rate, and should under-perform the broad market and the company's peer group over the next 12-18 months; SELL: stock is significantly overvalued based on current and projected E.P.S., cash flow and dividend rate, and should materially under-perform the broad market and the company's peer group over the next 12-18 months.

Other factors considered in the Investment Rating include the company's risk profile, including earnings predictability, financial position, industry position, technology risk, product risk, and other factors. The required annual return for a specific investment rating will be increased for stocks with greater financial, business, and/or earnings risk.

This report is based upon information which the Gargiulo Group, a division of Oscar Gruss & Son Incorporated, believes to be reliable. However, neither we nor any individual acting on our behalf can guarantee the accuracy or completeness of its contents. It does not purport to contain a complete analysis of every material fact concerning any company, industry or security. We assume that it will be read in conjunction with other available reports and data. Opinions expressed herein are subject to change without notice. No investor can assume that reliance on the views, opinions or recommendations contained herein will produce profitable results. We and/or our employees and affiliates may have positions in securities which are referred to herein and may make purchases or sales thereof while this report is in circulation. Further information is available upon request. Foreign currency-denominated securities are subject to fluctuations in currency exchange rates that could have a positive or adverse effect on an investor's return upon the conversion into local currency of dividends or interest received, or proceeds from the sale of such securities. In addition, the value of U.S. dollar-denominated ADRs and the value of U.S. dollar-denominated ordinary shares, or common shares, of foreign issuers can be influenced by fluctuations in currency exchange rates.

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Note to Editors: (R) Registered

CONTACT: Gargiulo Group, New York 

Gene Gargiulo, 212/952-1220