Medtronic and Computer Motion Form Partnership in Robotic Microsurgery; Medtronic Invests in Computer Motion and Becomes European Distributor for Cardiac Robot Designed to Enable New E-CABG Procedure.

SANTA BARBARA, Calif.--(BW HealthWire)--March 26, 1997--Computer Motion, Inc. and Medtronic, Inc. (NYSE: MDT) today announced a strategic alliance under which the companies will collaborate in promoting Computer Motion's computer-assisted robotic system for minimally invasive cardiac surgery.

Medtronic will become the exclusive distributor of these robotic systems in Europe, the Middle East and Africa, and a co-marketer in the U.S. and Canada, after the products have undergone clinical testing and received regulatory approvals.

Medtronic has invested an undisclosed amount in Computer Motion.

The Computer Motion robotic system for cardiothoracic surgery, currently named "ZEUS(TM)," is expected to be commercially available in 1998. ZEUS is a computer and voice controlled robotic system that positions and maneuvers the endoscope (a specially designed optical tube) and surgical instruments for performing microsurgical procedures. The surgical workstation is comprised of both disposable and reusable devices.

ZEUS is designed to allow cardiac surgeons to perform precise and delicate maneuvers endoscopically through small incisions less than the diameter of a pencil made between a patient's ribs. An endoscope (a specially designed optical tube), which is connected to a medical video camera and light source, and microsurgical instruments controlled by the robotic arms, are passed into the chest cavity where they allow the surgeon to perform surgical procedures from the Zeus workstation while viewing his or her work on a video monitor.

ZEUS enables a new endoscopic surgical procedure called E-CABG, for Endoscopic Coronary Artery Bypass Graft, which allows multiple occluded coronary arteries to be bypassed without the thoracotomy or mini-thoracotomy currently used. Elimination of these larger surgical incisions is expected to result in faster recovery times, less hospitalization and over-all lower costs. Heart valve repair and replacement are other surgical applications for the ZEUS system.

William W. George, Medtronic Chairman and Chief Executive Officer, noted that Medtronic strives to provide its customers with leading-edge technology that will enable them to perform minimally invasive surgical procedures with improved outcomes and reduced cost.

"The ZEUS system represents the next significant enabling technology for minimally invasive cardiac surgery," George said, "We are extremely excited about the opportunity to partner with the world's leading supplier of medical robotics."

Gene Wang, President and Chief Executive Officer of Computer Motion said, "Computer Motion's robotic technology gives surgeons the dexterity to perform a fully endoscopic CABG procedure. The delicate manipulations required to endoscopically suture the tiny vessels for Coronary Artery Bypass are beyond the limits of human ability. We are honored to be partnering with the medical industry's premier cardiac company to pioneer this next frontier in minimally invasive surgery. Our companies share a vision of enabling a new procedure that combines the superior outcomes of open-heart surgery with the minimal trauma of angioplasty."

Medtronic officials said the Computer Motion agreement was another step in a strategic thrust to provide state-of-the art surgical systems enabling surgeons to perform minimally invasive procedures as appropriate on a beating or arrested heart. Computer Motion's ZEUS system, along with Medtronic's Octopus Tissue Stabilizing System, Hemopump(R) Cardiac Assist System, Grinfeld Cannula and Medtronic's broad product lines in heart valves, cardiopulmonary devices and cannulae will provide physicians with state-of-the-art systems to perform procedures best suited for each patient.

Computer Motion announced plans earlier this year to host the International Congress on Computers and Robotics in the Operating Room 2000 in Santa Barbara, CA on June 18-21, 1997. Computer Motion's Chief Technical Officer & Founder, Dr. Yulun Wang, will unveil at the Congress Project Zeus: Enabling Endoscopic Coronary Artery Bypass Grafting (E- CABG), a robotically enhanced surgical workstation which improves dexterity for use in minimally invasive microsurgery and Project Hermes: Creation of the `Intelligent' Operating Room, a voice-activated surgeon control center which integrates the electronic devices within the operating room. For more information on the International Congress on Computers and Robotics in the Operating Room 2000, please contact Computer Motion at 800/739-8000, ext. 2000.

Medtronic, Inc., headquartered in Minneapolis, is the world's leading medical technology company specializing in implantable and invasive therapies. Its Internet address is http://www.Medtronic.com .

Founded in 1989, Computer Motion is the world leader in medical robotics. The company's mission is to enhance surgeons' capabilities, improve outcomes and reduce costs using computers and robotics. Computer Motion is privately held and is based in Goleta, CA. The company's Web site is http://www.ComputerMotion.com .

CONTACT: Medtronic Investor Relations

Chris O'Connell, 612/514-4971

Dale Beumer, 612/514-3038

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Medtronic Public Relations

Dick Reid, 612/514-3052

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Computer Motion Public Relations

Leslie Remley, 805/968-9600, ext. 125