Ladenburg Thalmann Initiates Coverage on CardioDynamics.

Business Editors & Health/Medical Writers

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SAN DIEGO--(BW HealthWire)--June 7, 2002

CardioDynamics (Nasdaq:CDIC), the innovator and global leader of Impedance Cardiography (ICG) technology and manufacturer of BioZ(R) noninvasive digital cardiac function monitoring systems, today announced that Ladenburg Thalmann & Co. Inc. initiated coverage with a "BUY" recommendation on the company's shares.

Alexander K. Arrow, M.D., CFA, managing director and senior medical technology analyst at Ladenburg Thalmann & Co. Inc., said, "It's rare for a device to have the opportunity to become part of a routine patient check-up protocol in any medical specialty. Until 1999, the only high-end medical device used in the cardiology standard heart check-up was the EKG, a device with a 100-year history that is off-patent and sold as a near commodity by at least 20 companies. With no direct competitors and what appears to be a well-protected niche in outpatient cardiology, one of the fastest growing spaces in all of medical technology, CardioDynamics' product has caught our attention. We've completed an aggressive underground channel check program involving calling cardiologist offices, speaking with clinicians, nurses, medical assistants and device technicians, ignoring the references supplied by the company. While responses varied, we found some practitioners using the device multiple times per day and a few even calling it a new standard of care. We are also impressed by CardioDynamics' management depth -- finding a team we would have expected to find at a company several times its size. We believe the company represents an attractive investment at its current price."

A copy of the report can be obtained by contacting a Ladenburg Thalmann sales representative at any branch office. Members of the media may contact Alexander K. Arrow, M.D., CFA at 310/479-9672, or via e-mail at [e-mail].

About Ladenburg Thalmann & Co.:

Founded in 1876 and a NYSE member since 1879, Ladenburg Thalmann is a full service investment bank and brokerage firm based in New York City, with regional offices in Los Angeles; Cleveland; Las Vegas; and Great Neck, New York. The High Yield Securities division specializes in the research, trading and sales of high yield and distressed securities for institutional and high net worth investors. Ladenburg Thalmann & Co. Inc. is a member of the NYSE, AMEX, NASD and all other principal exchanges as well as SIPC. Ladenburg Thalmann & Co. Inc.'s parent company, Ladenburg Thalmann Financial Services is traded on the AMEX under the symbol LTS.

About CardioDynamics:

CardioDynamics (Nasdaq:CDIC), the ICG Company, is the innovator and global leader of breakthrough medical technology called Impedance Cardiography (ICG). The company's primary products, the BioZ(R) Systems, are being used by leading physicians around the world to help battle the number one killer of men and women -- cardiovascular disease. Partners include GE Medical Systems Information Technologies, Spacelabs Medical Systems and Vasomedical. The worldwide market potential for BioZ products is estimated to be $5 billion and an additional $800 million in recurring annual revenue for disposables. For additional information or to request an investor package, refer to the company's Web site at www.cdic.com.

Forward-Looking (Safe Harbor) Statement:

Note: Except for the historical and factual information contained herein, this press release contains forward-looking statements, the accuracy of which are necessarily subject to uncertainties and risks, which include sole dependence on the BioZ product line, and various uncertainties characteristic of companies just emerging from the development stage; as well as other risks detailed in the company's filings with the SEC, including its 2001 Form 10-K. The company does not undertake to update the disclosures contained in this press release.