Medtronic Announces the U.S. Launch of Its R2 and D2 Balloon Catheters.

Business Editors & Health/Medical Writers

MINNEAPOLIS--(BW HealthWire)--June 7, 2001

Broadening the range of its family of balloon catheters, Medtronic, Inc. (NYSE:MDT) today announced the U.S. launch of its R2(TM) Rapid Exchange Balloon Dilatation Catheter With Perfusion Technology and its counterpart, the D2(TM) Over-The-Wire Balloon Dilatation Catheter. Both the R2 and the D2 are now available for immediate shipment in the U.S.

The R2 and the D2 low compliance, extended pressure balloon catheters join the R1 and D1 semi-compliant balloon catheters, thus expanding the range of balloon angioplasty treatment options now available from Medtronic. The R2 and D2 carry over many of the same delivery-enhancing features of the R1 and D1, while incorporating the strongest performance characteristics of both semi-compliant and non-compliant balloon catheters. The result is a highly versatile solution that meets both patient needs and physician preferences.

"Medtronic's commitment to developing `best-in-class' vascular products that score high in performance and deliverability is carried through to our family of balloon catheters, including the R2 and D2," said Andy Rasdal, president of Medtronic Vascular. "With this launch, physicians will soon enjoy the versatility these balloon catheters offer."

The primary difference between the R2 and D2 versus other products now available on the market is its balloon material, AVEd Plus. Based upon the semi-compliant AVEd material used for R1 and D1, the AVEd Plus material offers low compliance and an extended pressure range - without compromising profile, flexibility, trackability or refold capabilities. The R2 and D2 carry over the following characteristics from the R1 and D1:

-- Selective Dura-Trac Hydrophilic Coating. The Selective Dura-Trac coating is
designed to provide the right balance of lubricity and traction, so that the
balloon can cross lesions more easily, as well as retain its position once it
has reached the lesion.

-- Intelligent Balloon Folding. This technology optimizes the R2 and D2's
refold capabilities by tailoring the number of folds to the specific size of
the individual balloon catheter. This technology also helps create one of the
lowest crossing profiles available for single or repeated inflations.

-- Flexible, Tapered Tip Design. The unique tip of the R2 and D2 enables the
balloon to track smoothly across the guidewire and cross the lesion.

The R2 rapid exchange with perfusion capability and the D2 over-the-wire balloon catheter families are available in lengths of 10, 16, 20 and 30 mm. and in diameters ranging from 1.5 to 4.0 mm., with quarter sizes available. The R1 and R2 families offer perfusion capabilities at an average rate of 2cc/minute at nominal pressure.

Balloon catheters are used to treat coronary artery disease. During a percutaneous transluminal coronary angioplasty (PTCA) procedure, a balloon catheter is threaded through the femoral artery to the site of the lesion and inflated to compress the plaque associated with coronary artery disease against the artery's walls, thus restoring blood flow. About 850,000 PTCA procedures take place in the United States each year, and the annual U.S. market for PTCA procedures (including stents, balloons, guidewires, guide catheters and accessories) is estimated at $2.2 billion.

Medtronic, Inc., headquartered in Minneapolis, is the world's leading medical technology company, providing lifelong solutions for people with chronic disease. Its Internet address is www.medtronic.com. Medtronic AVE, formerly Arterial Vascular Engineering, Inc., is headquartered in Santa Rosa, Calif.

Any statements made about the company's anticipated financial results and regulatory approvals are forward-looking statements subject to risks and uncertainties such as those described in the company's Annual Report on Form 10-K for the year ended April 30, 2000. Actual results may differ materially from anticipated results.