March Quarter Revenues Increase 142 Percent
             from Previous Quarter and 468 Percent Year Over Year

    MENLO PARK, Calif., May 1 /PRNewswire/ -- Perclose, Inc. (Nasdaq: PERC)
today reported results for the fourth quarter and year ended March 31, 1998.
For the fourth quarter, revenues were $5.8 million, an increase of 142 percent
from revenues of $2.4 million in the previous quarter and up 468 percent from
the $1.0 million reported in the same quarter a year ago.  The net loss for
the March quarter was $1.6 million compared with a loss of $3.8 million for
the December 1997 quarter and $3.2 million for the same period of the prior
year.  The loss per share was $0.15 compared with $0.38 per share in the
December 1997 quarter and $0.33 per share in the March quarter of fiscal 1997.
Shares used in calculating loss per share were 10.7 million shares in the
March 1998 quarter, 10.0 million in the December 1997 quarter and 9.5 million
in the March 1997 quarter.
    For the year ended March 31, 1998, revenues were $10.6 million, an
increase of 139 percent from revenues of $4.5 million in the prior year.  The
net loss for the year was $13.8 million compared with a net loss of
$9.7 million in the year ago period.  The loss per share was $1.38 on
10.0 million shares outstanding compared with a basic and diluted loss of
$1.02 per share on 9.5 million shares outstanding in the prior year.  Prior
year net loss per share has been restated under the provisions of FAS #128.
At March 31, 1998, Perclose had cash, cash equivalents and short-term
investments of $31.6 million.
    Hank Plain, Perclose's president and chief executive officer, commented,
"We are very pleased with the successful introduction of the Prostar(R)XL and
Techstar(R)XL Percutaneous Vascular Surgery products in the United States.  We
are on track with the product launches in terms of the number of accounts
using our products, the rate of usage in these accounts, pricing levels and
overall clinical results.  The feedback we have received from cardiologists
and radiologists regarding the clinical benefits and ease of use of our
devices has been very positive.  In fact, many hospitals are changing their
clinical pathways based on the clinical and economic benefits provided by
Perclose products."
    Plain continued, "As a result of the successful product launches, our
financial performance is also improving accordingly.  Revenue growth is
strong, gross margins improved from 12 percent in the December 1997 quarter to
59 percent in the March 1998 quarter and the net loss decreased significantly
compared to the two previous quarters.  Fiscal 1998 was the third year in a
row that revenue growth exceeded 80 percent per year and the second quarter in
a row that it exceeded 100 percent."
    Perclose, based in Menlo Park, Calif., designs, manufactures and markets
less invasive medical devices that automate the surgical closure or connection
of blood vessels.  The Prostar(R) and Techstar(R) products, marketed in the
U.S. and internationally, surgically close the arterial access site in the
femoral artery following catheterization procedures such as angioplasty,
stenting, atherectomy and diagnostic angiography. The patented, proprietary
Prostar and Techstar products offer superior clinical treatment, more rapid
recovery and a more cost-effective alternative to the standard method of
closing arterial access sites.  The Heartflo(TM) System, which automates the
surgical connection of blood vessels during conventional and minimally
invasive coronary artery bypass surgery, is in product development.  Perclose
common stock is traded on the Nasdaq National Market under the symbol PERC.
    Except for the historical information contained herein, the matters
discussed in this news release are forward looking statements that involve
risk and uncertainties, including the availability and market acceptance of
new products, risk of adverse determinations in litigation relating to patents
and intellectual property rights, the receipt and timing of regulatory
approvals, risks associated with manufacturing scale-up and increases in
production volumes, risks associated with product recalls and the management
of growth.  For further information, refer to the risk factors in the most
recent periodic filings with the Securities and Exchange Commission.

                                Perclose, Inc.
                      Condensed Statements of Operations
               (dollars in thousands except per share amounts)


                                    Three Months Ended     Years Ended
                                         March 31,           March 31,
                                      1998      1997      1998      1997
                                        (unaudited)

    Net revenues, product sales     $5,838    $1,029    $10,631    $4,456
    Operating expenses:
      Cost of goods sold             2,400     1,252      7,783     4,703
      Research and development       1,547     1,057      5,449     4,745
      Marketing, general and
        administrative               3,923     2,197     12,530     6,301
         Total operating expenses    7,870     4,506     25,762    15,749

    Loss from operations            (2,032)   (3,477)   (15,131)  (11,293)

    Gain on sale of investments                   --         --        --
    Interest income                    456       328      1,466     1,753
    Interest expense                   (29)      (22)      (131)     (118)
                                       427       306      1,335     1,635

    Loss before income taxes                  (3,499)   (15,262)  (11,411)
    Provision for income taxes                    --         --        --

    Net loss                       $(1,605)  $(3,171)  $(13,796)  $(9,658)

    Basic and diluted loss
      per share                     $(0.15)   $(0.33)    $(1.38)   $(1.02)

    Shares used in computing net
      loss per share                10,703     9,542      9,967     9,471

                           Condensed Balance Sheets
                            (dollars in thousands)

                                         March 31,          March 31,
                                           1998               1997

                    Assets
    Current assets:
      Cash and cash equivalents          $13,232            $2,677
      Short term investments              18,349            24,995
      Accounts receivable                  3,455             1,530
      Inventories                          1,619               744
      Prepaid expenses                       628               280
        Total current assets              37,283            30,226

    Equipment and leasehold
      improvements, net                    2,277             1,647

    Other assets                             891               641

    Total assets                         $40,451           $32,514

                 Liabilities and Stockholders' Equity

    Current liabilities                   $3,509            $3,003

    Long-term portion of notes payable         0               128

    Stockholders' equity                  36,942            29,383

    Total liabilities and
      stockholders' equity               $40,451           $32,514

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