| Endocardial Solutions Announces Third Quarter Results October 21, 1999 <*dv_0*>MINNEAPOLIS / ST.PAUL -- Endocardial Solutions, Inc. (Nasdaq: ECSI) today announced results for the third quarter ended September 30, 1999. Revenues for the three-month period were $3,527,893, compared with revenues of $692,996 for the same period of 1998. The net loss for the third quarter was $2,526,797, or $.25 per share, compared with a net loss of $2,418,816, or $.27 per share, for the same period of 1998. "We are very pleased with the early adoption of the EnSite 3000® System in the US," said Jim Bullock, president and CEO. "Our US sales and engineering team is fully trained and the selling process is well defined. Our gross margins, which exceeded 40% this quarter, continue to improve based upon the stability of selling price, increased throughput, and the benefits derived from our focus on all aspects of manufacturing costs." <*dv_5*>For the nine months ended September 30, 1999, revenue was $6,540,328, compared to revenues of $1,128,402 for the same period of 1998. The company began recording revenue in the second quarter of 1998. The net loss for the nine months ended September 30, 1999 was $9,190,200, or $.98 per share, compared to a net loss of $11,939,069, or $1.33 per share, for the same period of 1998. The 1998 loss included expenses of $3,585,602 related to a license agreement with Medtronic, Inc. (NYSE: MDT) that gives ESI exclusive use of 3D intracardiac location technology for its EnSite 3000® System. <*dv_6*>The U.S. Food and Drug Administration cleared the EnSite 3000® System for use in diagnostic mapping of complex arrhythmias in the right atrium of the heart during the second quarter 1999. Through a distribution agreement with Medtronic, Inc., the EnSite 3000® System and catheter have been available to electrophysiologists in Europe since the second quarter 1998. During July 1999, the company announced the closing of a $10 million private placement of 1,111,111 shares of common stock of the company to institutional investors. Based in St. Paul, Minnesota, Endocardial Solutions develops, manufactures and markets technology for diagnostic mapping of complex arrhythmias (abnormally rapid heartbeats caused by irregular electrical activity in the heart). The EnSite 3000® System provides a 3D graphical display of the heart's electrical activity. The discussion above contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. A number of factors should be considered in conjunction with these forward-looking statements. These factors are set forth in the cautionary statements included in Exhibit 99 to Endocardial Solutions' Form 10-Q for the quarter ended June 30, 1999, filed with the Securities and Exchange Commission. Endocardial Solutions cautions investors and others to review the statements set forth in that report and that other factors may prove to be important in affecting the business and results of operations of Endocardial Solutions. Contacts: Leota Pearson, VP Finance & CFO, Endocardial Solutions
(651) 523-6933
lpearson@endocardial.com <*dv_4*>Perry Ketchum, Ketchum Metz Inc.
(763) 479-0145
pketchum@ketchummetz.com |
