Medtronic Cardiac Rhythm Management Completes Landmark Year for Introduction of New Products/Therapies.

Business Editors/Health/Medical Writers

MINNEAPOLIS--(BUSINESS WIRE)--Dec. 31, 2002

New ICDs, pacemakers, heart failure systems, programmers, leads,

ablation catheters, implant tools and AEDs all introduced in 2002

For Medtronic's Cardiac Rhythm Management division, 2002 was its most prolific year ever, one of unequalled product introductions and surging acceptance of therapies that have helped nearly half a million patients worldwide.

The global leader in medical technology, Medtronic (NYSE:MDT) Cardiac Rhythm Management has introduced 10 major new products over the past 12 months, an unprecedented achievement in the implantable cardiovascular device industry. Many of these products -- such as the new Kappa(R) 900 pacing system, the Marquis(R) DR implantable cardioverter-defibrillator and the InSync ICD(R) cardiac resynchronization system for heart failure -- became the most prescribed devices of their type in the world within weeks of their introduction.

"This truly has been a landmark year for Medtronic in terms of bringing new products and therapies to market, all for the benefit of patients with unmet and chronic medical needs," said Steve Mahle, president of Medtronic Cardiac Rhythm Management. "We have heard thousands of stories about patients whose lives have been completely transformed because of therapies like cardiac resynchronization, ablation and pacing or defibrillation. It has been extremely gratifying to watch as these patients returned to their jobs, their hobbies, their normal lives."

The new products run the gamut of the cardiac rhythm management business -- implantable devices and the leads that deliver their therapy, a state-of-the-art programmer, a unique home patient management system based on remote technology, external defibrillators for hospital and home use, and ablation catheters that help provide the only curative therapy in cardiology.

Medtronic CRM products introduced in 2002

-- Kappa(R) 900 pacemaker system

-- Marquis(R) DR and VR implantable cardioverter-defibrillator systems

-- Medtronic CareLink(TM) Network

-- CareLink(TM) 2090 programmer

-- RF Contactr(TM) ablation catheter

-- Epicardial Lead Implant Tool

-- InSync ICD(R) cardiac resynchronization system for heart failure

-- InSync Marquis(R) ICD (in Europe)

-- Attain(TM) Over-the-Wire left-heart lead

-- LifePak(R) 20 automated external defibrillator (AED)

-- LifePak(R) CR Plus AED (for home use)

In addition, the InSync(R) III and InSync Marquis(R) cardiac resynchronization systems for heart failure are in review by the U.S. Food and Drug Administration, with approvals expected sometime in early 2003. Both products are available in Europe.

"We have seen particularly strong market acceptance of the Marquis defibrillator, the new Kappa pacemaker and the InSync ICD/Attain left-heart lead system in the United States," said Chris O'Connell, vice president Medtronic sales and marketing. "Each of these products not only provides superb therapy, but also were designed to provide ease of use for physicians and patient safety. These products have really hit the mark in terms of total customer satisfaction."

In addition to the plethora of new, industry-leading products, in June Medtronic also saw the publication of the MIRACLE trial results in the prestigious New England Journal of Medicine. This landmark trial offered clinical evidence of the benefits of cardiac resynchronization therapy, the first new therapy for moderate to severe heart failure patients in 30 years. Data from this and other clinical trials also demonstrates that device-based therapy is helping patients make fewer trips to emergency rooms, providing a cost-effective solution to an over-burdened healthcare system.

"With 5 million heart failure patients in the United States and 22 million worldwide, we've only scratched the surface of the number of patients we can help through these therapies," said Ursula Gebhardt, vice president of Medtronic's heart failure business. "Cardiac resynchronization therapy is filling an important gap in the treatment of heart failure and providing benefits that are over and above what patients receive from standard medical therapy."

In the past five years, the CRM workforce has grown from 3,473 employees to approximately 7,500 today. In addition, during that span Medtronic as a company has nearly doubled the amount it spends on research and development to maintain its industry-leading product pipeline.

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.

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 and on Form 10-K for the year ended April 26, 2002. Actual results may differ materially from anticipated results.