| Endocardial Solutions Announces 1999 Year-End Results February 23, 2000 MINNEAPOLIS / ST.PAUL -- Endocardial Solutions, Inc. (Nasdaq: ECSI) today reported net sales of $9,597,193 for the year ended December 31, 1999, compared with revenue of $1,950,497 for 1998. The net loss for the year was $11,728,656, or $1.23 per share, compared with $14,685,275, or $1.63 per share, for 1998. Net sales for the fourth quarter 1999 were $3,056,865, compared with revenue for the same period of 1998 of $822,095. The loss for the fourth quarter was $2,538,457, or $.25 per share, compared with a net loss of $2,746,206, or $.30 per share, for the same period of 1998. The results are within the range of preliminary estimates announced by the company on January 25, 2000. "We are very pleased with our first full year of EnSite 3000® System sales," said Jim Bullock, president and CEO. "We are building a strong worldwide foundation in the electrophysiology market and continue to experience growing clinical validation of the EnSite 3000® System. Fiscal year 2000 will be a pivotal year as we look forward to building upon our initial U.S. and international sales base." Operating expenses increased $1,083,572 to $14,819,891 for the year ended December 31, 1999. The 1999 operating expenses include an increase of $6,402,238 in sales and marketing resulting from the establishment of the company's U.S. sales and clinical team. Research and development expenses were $5,102,378 for the year ended December 31, 1999, compared to $10,651,709 for the same period in 1998. The 1998 operating expenses included $3,585,602 related to a license agreement with Medtronic, Inc. (NYSE:MDT) that gives ESI use of 3D intracardiac location technology for its EnSite 3000® System. 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. 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 September 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 Perry Ketchum, Ketchum Metz Inc.
(763) 479-0145
pketchum@ketchummetz.com |
