Endocardial Solutions, Inc.


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Endocardial Solutions Announces Second Quarter Results

July 20, 2000

MINNEAPOLIS / ST.PAUL -- Endocardial Solutions, Inc. (Nasdaq: ECSI) today announced results for the second quarter ended June 30, 2000.

Revenues for the three-month period were $3,737,131, compared to revenues of $1,719,053 for the same period of 1999. The net loss for the second quarter was $3,137,461, or $.31 per share, compared to a net loss of $3,750,320, or $.41 per share, for the same period of 1999.

<*dv_5*>"This quarter we completed our first year of U.S. sales. We have also built a critical mass of EnSite 3000® Systems worldwide, having sold our 100th unit this quarter," said Jim Bullock, president and chief executive officer. "Our business model is becoming more predictable, which will translate into improved market penetration and profitability as product sales increase over the next year."

"Other developments this quarter included:

During the last week of June, we began upgrading customer sites with the new Clarity software. Early feedback has been very positive, indicating that Clarity delivers a simpler user interface and map interpretation.
<*dv_4*>The company's EnSite® catheter was assigned pass-through outpatient Medicare reimbursement status by the Health Care Financing Administration under HCFA's new outpatient reimbursement system that becomes effective August 1. This dramatically improves the outpatient reimbursement environment for the EnSite® mapping procedure and catheter.
<*dv_0*>The clinical utility of the EnSite 3000® System continues to grow. At the North American Society of Pacing and Electrophysiology in May, we added 24 scientific presentations to bring our total to over 100.
In June, we held our second annual Complex Arrhythmias Mapping Symposium. This event provided an excellent opportunity to showcase the EnSite 3000® System to 80 potential customers through hands-on experience and case presentations.
And finally, we completed a $12.7 million equity financing that provides the funds to allow us to move ahead on U.S. market expansion, clinical trails for atrial fibrillation and software and hardware product development," said Bullock.

The company began recording revenue from U.S. sales in the second quarter 1999. Gross margin for the quarter ended June 30, 2000, was 48.4%, compared to 17.9% for the quarter ended June 30, 1999. Because of expenses associated with the establishment of a U.S. sales and clinical team, operating expenses increased $807,526 to $4,847,038 for the quarter.

For the six months ended June 30, 2000, revenues were $7,097,189, compared to revenues of $3,012,435 for the same period of 1999. The company began recording revenue in the second quarter of 1998. The net loss for the six-month period was $5,639,875, or $.55 per share, compared to a net loss of $6,663,402, or $.74 per share, for the same period of 1999.

<*dv_2*>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. (www.medtronic.com), the EnSite 3000

Based in St. Paul, Minnesota, Endocardial Solutions (www.endocardial.com) 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 ofthe Private Securities Litigation Reform Act of 1995. A number of factors should beconsidered 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 March 31, 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.