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GV MEDICAL SIGNS DEFINITIVE AGREEMENT FOR FINANCING

 GV MEDICAL SIGNS DEFINITIVE AGREEMENT FOR FINANCING
 MINNEAPOLIS, Dec. 30 /PRNewswire/ -- GV Medical, Inc.,


(NASDAQ: GVMI) announced today that definitive agreements have been signed with two investor groups calling for the infusion of $4 million in new equity into the company. The investors had previously supplied $500,000 in bridge financing that was called for under letters of intent signed Oct. 31.
 Closing of the transaction is subject to approval by GV Medical shareholders at a meeting to be scheduled late in January 1992, and other normal conditions for a transaction of this type.
 Under terms of the agreements, one investor group will purchase 3 million shares and another investor group will purchase 1 million shares of newly issued GV Medical common stock at a price of $1.00 per share. In addition, the groups will receive warrants to purchase an additional 4 million shares of GV Medical common stock at $1.25 per share, exercisable within 12 months from the closing. Upon closing of the transaction, promissory notes issued in connection with the bridge financing will be cancelled and the principal will be applied toward the purchase price of the GV Medical common stock.
 After the closing of the investment, it is anticipated that Daryl Yurek, a member of one of the investment groups, will become chairman of the board and a director of GV Medical. As part of his employment agreement, Yurek and another member of the investor group will be granted a significant stock option for a total of 1,050,000 shares, with an exercise price of 50 cents per share. Assuming exercise of these options and the warrants discussed above, members of the two investor groups will own 63.4 percent of GV Medical's common stock on a fully diluted basis. The agreements contemplate that James R. Grabek will remain as president and chief executive officer of GV Medical. Yurek is currently chairman of Destron/IDI, Inc., a technology company based in Boulder, Colo.
 GV Medical, based in Minneapolis, is currently working with the Massachusetts Institute of Technology and the Cleveland Clinic Foundation to develop a new laser system that incorporates both diagnostic and therapeutic features to remove plaque from blocked coronary arteries. The company's existing LASTAC(TM) laser system is awaiting approval from the U.S. Food and Drug Administration for use in coronary arteries and already has been approved for use in peripheral arteries.
 -0- 12/30/91
 /CONTACT: Curt Swenson of Swenson Falker Eilertsen, 612-371-0000, for GV Medical, or Jim Grabek of GV Medical, 612-559-4000/
 (GVMI) CO: GV Medical, Inc. ST: Minnesota IN: MTC SU: CON


AL -- MN002 -- 2817 12/30/91 10:46 EST
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Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Date:Dec 30, 1991
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