Thoratec Laboratories Reports 48 Percent Increase in Second Quarter Sales; Continued Profitable Operations.

Business Editors, Health/Medical Writers

PLEASANTON, Calif.--(BW HealthWire)--July 25, 2000

Thoratec Laboratories Corporation (Nasdaq:THOR), a medical device company, today reported results for the second quarter and first six months of fiscal 2000.

For the three months ended July 1, 2000, the company reported sales of $7.3 million, a 48 percent increase over sales of $4.9 million in the second quarter of fiscal 1999. Thoratec reported net income of $354,000, $0.02 per diluted share, versus a loss of $53,000, or $0.00 per share, in the same period a year ago.

For the first six months of 2000, the company reported sales of $14.9 million, a 45 percent increase over sales of $10.3 million in the first half of 1999. The company reported net income of $1.0 million, or $0.04 per diluted share, compared with a loss of $389,000, or $0.02 per share, in the first six months of fiscal 1999.

"In nine of the last 10 quarters and for the fourth consecutive quarter, the company has reported year over year sales growth of 40 percent or greater as we continue to increase the market and market share for the Thoratec(R) VAD (Ventricular Assist Device) System," noted D. Keith Grossman, president and chief executive officer of Thoratec. "Not only did we grow sales with existing customers, but we added eight new centers ending the quarter with 148 centers versus 111 a year ago," he added.

Grossman noted that the company ended the quarter with $18.2 million in cash and short-term investments versus $2.0 million at the end of 1999. "Our significantly improved financial condition reflects the generation of positive cash flow from operations during the first half of this year and the impact of our equity offering which was completed during the quarter," he said.

The quarter was marked by several key accomplishments across the company's active clinical trial programs. These included the resumption of the U.S. trial for the TLC-II in which the company has now accumulated approximately three-fourths of the patient days required by the clinical protocol. The company plans to file a PMA supplement with clinical data for the device later this year.

"We also realized important milestones with our graft clinical trial efforts," Grossman said. "In mid-May, we announced FDA approval for an Investigational Device Exemption (IDE) for the company's Aria(TM) CABG (Coronary Artery Bypass Graft) to begin our AlternativE Graft Investigational Study (AEGIS/U.S.) and just last week received approval to expand the Phase I study from two to six centers. Today we announced in a separate release the first U.S. patient enrolled in this study."

The Aria is initially targeted for patients undergoing coronary artery bypass surgery with few or no suitable native vessels. The company launched a clinical program for the device in Canada --AEGIS/Canada-- late last year and currently has eight patients enrolled in that program.

In addition, the company filed a Premarket Notification 510(k) with the FDA for its Vectra(TM) VAG (Vascular Access Graft) seeking clearance to market the device in the U.S. The Vectra is designed to provide access to the blood stream in renal failure patients undergoing hemodialysis. The company believes the data in this filing demonstrates the viability of the device in meeting key metrics, including enabling early access for dialysis, achieving equivalent or better patency rates and improving time required for the graft to stop bleeding after dialysis, as compared to currently approved devices.

Thoratec Laboratories Corporation is engaged in the research, development, manufacture and marketing of medical devices for circulatory support and vascular graft applications, all of which incorporate its proprietary biomaterial, Thoralon(R). For additional information about Thoratec, visit the company's Web site at http://www.thoratec.com. To participate in the Company's second quarter 2000 earnings results conference call, the dial-in number is 719/457-2629. You can also access the call through the vcall website, www.vcall.com or through Thoratec's web site.

The portions of this news release that relate to future plans, events or performance, are forward-looking statements. Investors are cautioned that all such statements involve risks and uncertainties, including risks related to announcements by the company's competitors, government regulatory approval processes and market acceptance of new products. These factors, and others, are discussed more fully in the company's other filings with the Securities and Exchange Commission. Actual results, events or performance may differ materially. These forward-looking statements speak only of the date hereof. The company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.

                  THORATEC LABORATORIES CORPORATION
                 Condensed Consolidated Balance Sheet
                              (Unaudited)
             (numbers in thousands, except per share data)

                                                 Fiscal Period Ended
                                                 June      December
                                                 2000        1999
ASSETS

Current Assets:
Cash and cash equivalents                       $5,938      $1,697
Short-term investments available-for-sale       12,254         276
Receivables - net                                5,501       5,453
Inventories                                      7,839       6,612
Prepaid expenses and other                         247         425
                                               -------     -------
Total current assets                            31,779      14,463

Equipment and leasehold improvements - net       9,204       9,561
Other assets                                     1,053       1,036
                                               =======     =======
TOTAL ASSETS                                   $42,036     $25,060

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
Accounts payable                                $1,173      $1,703
Accrued compensation                             1,494       1,466
Deferred distributor revenue                       285         285
Other                                              588         476
                                               -------     -------
Total current liabilities                        3,540       3,930

Long-term deferred distributor revenue             712         854
Total liabilities                                4,252       4,784
                                               -------     -------
Shareholders' Equity                            37,784      20,276
                                               -------     -------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY     $42,036     $25,060
                                               =======     =======


                  THORATEC LABORATORIES CORPORATION
            Condensed Consolidated Statements of Operations
                              (Unaudited)
             (numbers in thousands, except per share data)


                               Three Months Ended   Six Months Ended
                                June      June       June      June
                                2000      1999       2000      1999

Product sales - net            $7,261    $4,892    $14,867   $10,267
Cost of product sales           2,561     1,661      5,493     4,009
                              -------   -------    -------   -------
Gross profit                    4,700     3,231      9,374     6,258

Operating expenses:
 Research and
  development                   1,873     1,278      3,478     2,431
 Selling, general, and
  administrative                2,666     2,206      5,430     4,581
                              -------   -------    -------   -------
 Total operating
  expenses                      4,539     3,484      8,908     7,012
                              -------   -------    -------   -------

Other operating income             71        71        474       143
                              -------   -------    -------   -------
Operating income (loss)           232      (182)       940      (611)

Interest and
 other income - net               134       130        137       229
                              -------   -------    -------   -------
Income (loss)
 before taxes                     366       (52)     1,077      (382)

Income tax expense                 12         1         74         7


Net income (loss)                $354      $(53)    $1,003     $(389)
                              =======   =======   ========   =======
Earnings (loss)
  per share:
 Basic                          $0.02    $(0.00)     $0.05    $(0.02)
 Diluted                        $0.02    $(0.00)     $0.04    $(0.02)

Shares used to compute
 earnings (loss) per share:

 Basic                         21,978    20,437     21,258    20,432
 Diluted                       23,474    20,437     22,779    20,432