Record Number of Multi-Vessel Cases Shows Continued Adoption of Off-Pump
                                Bypass Surgery

    CUPERTINO, Calif., July 14 /PRNewswire/ -- CardioThoracic Systems, Inc.
(CTS) (Nasdaq: CTSI), a leading developer of minimally invasive cardiac
surgery devices, today reported record financial results for the quarter and
six months ended July 3, 1998.
    For the second quarter of 1998, CTS reported sales of $3.8 million, a 35%
increase over 1997 second quarter revenues of $2.8 million.  Also for the
second quarter of 1998, CTS reported a net loss of $5.8 million, or $0.42 per
share on 13.9 million weighted average shares outstanding, compared to a net
loss of $4.8 million, or a net loss per share of $0.36 on 13.5 million
weighted average shares outstanding, for the second quarter of 1997.
    For the first half of 1998, CTS reported net revenues of $6.8 million,
compared with net revenues of $4.9 million for the first half of 1997.  Net
loss for the first half of 1998 was $11.6 million, or $0.84 per share on
13.8 million weighted average shares outstanding, compared to a net loss of
$9.5 million, or $0.71 per share on 13.4 million average weighted shares
outstanding, for the first half of 1997.
    As of July 3, 1998, CTS had cash, cash equivalents and available-for-sale
securities of $50.2 million.
    "We are pleased with the revenue trend this quarter," said Richard
Ferrari, CTS president and chief executive officer.  "These numbers indicate
the continued adoption of CTS' OPCAB(TM) (Off-Pump Coronary Artery Bypass)
System and confirm that the clinical and economic benefits of performing
minimally invasive off-pump coronary artery bypass surgery are becoming more
widely recognized."

    Additions to the OPCAB Family of Products
    During the quarter, CTS released the Access MV2(TM) and the Access
Plus(TM) Systems.  These next-generation OPCAB products are designed to enable
cardiothoracic surgeons to perform multi-vessel beating heart bypass
procedures from a mid-sternal approach.  The Access Plus, the most recently
launched product, features four stabilizer mounting points, expanding the
surgeon's ability to gain access to more areas of the heart.
    "In the second quarter alone, we shipped over 3,900 systems.  Three
thousand of these were OPCAB systems, which we believe were primarily used for
multi-vessel bypass procedures."  Ferrari added, "This accounted for 81% of
our total units shipped, and is due to the introduction of our Access MV2 and
Access Plus Systems, which enable cardiothoracic surgeons to reach multiple
vessels -- including those on the back side of the heart -- without the use of
a heart-lung machine."

    Second Generation MIDCAB Product
    CTS continues to refine the technology used to perform MIDCAB(TM)
(minimally invasive direct coronary artery bypass) procedures.  During the
second quarter, CTS released the MIDCAB Thoracotomy Modular Lift Set(TM) and
Stabilizer Set(TM).  The Modular Lift Set is used for optimal lifting of the
ribs, enabling direct visualization of the internal mammary artery, a vessel
commonly used to bypass blocked coronary arteries.  The Modular Stabilizer Set
offers multiple configurations, better enabling the surgeon to steady the
artery while performing beating heart bypass procedures.

    Specialty Product Launched
    The CTS FloCoil(TM) Shunt, also introduced in the second quarter, works in
conjunction with both the MIDCAB and OPCAB Systems by enabling the surgeon to
maintain a bloodless field at the anastomotic site while allowing continuous
blood flow to the heart during beating heart bypass surgery.
    Commented Ferrari, "There has been positive reaction to the CTS FloCoil
Shunt.  Cardiothoracic surgeons are finding that the shunt makes it easier to
perform beating heart bypass procedures by providing a clear field without
causing ischemia.  Adoption of the FloCoil Shunt has exceeded even our own
expectations."

    CTS' Conduit Harvesting Technology
    During the second quarter, CTS also introduced the Ceres SV(TM), an
endoscopic saphenous vein harvesting system.  The Ceres SV System is an
important extension of the company's existing technologies, and provides a
minimally invasive solution for harvesting the saphenous vein, which is
commonly used to bypass blocked coronary arteries.  While the traditional
saphenous vein harvesting method involves a full incision along the length of
the leg, which can cause post-operative pain and lengthy healing time, the CTS
approach involves a series of small incisions, and can reduce patient
complications, recovery time and overall healthcare costs.
    "The introduction of the Ceres SV System is an important milestone for
CTS.  We are now able to offer surgeons -- and patients -- a variety of
minimally invasive solutions for cardiac surgery," Ferrari said.  "This
demonstrates CTS' commitment to broaden its product portfolio in the minimally
invasive cardiac surgery market."

    Education and Training Continues
    CTS continues to provide ongoing clinical support and training to surgical
teams through the CTS CORriculum(sm) Institute of Education.  During
CORriculum sessions, cardiovascular teams learn state-of-the-art minimally
invasive techniques for beating heart bypass surgery.  Next month, CTS plans
to offer the first training program dedicated exclusively to teaching and
training surgical teams about minimally invasive saphenous vein harvesting
using the Ceres SV System.
    CardioThoracic Systems, Inc., Cupertino, Calif., is a leading developer of
proprietary technologies for minimally invasive cardiac surgery.  CTS
commercialized its first products in the U.S. in 1997, and has successfully
developed technologies and products for use in minimally invasive multi-vessel
beating heart bypass surgery.  CTS continues its efforts in the minimally
invasive cardiac surgery market with the introduction of its conduit
harvesting technology.  CTS is also developing technologies in other areas,
including stopped heart valve and coronary procedures. The company's stock is
traded on the Nasdaq Stock Market under the symbol CTSI.
    This news release contains forward-looking information that involves risks
and uncertainties, including uncertainties associated with the capabilities of
the CTS instrumentation, the market acceptance of CTS products, clinical
adoption of the MIDCAB and OPCAB Systems, the Ceres SV System and the FloCoil
Shunt, and the procedures for which such products are used, timing of
shipments of the company's new products, the timing of releases of the
company's products under development, and the success of the company's
development efforts.  Actual results may differ significantly from the results
discussed in the forward-looking statements as a result of those and other
factors, including factors set forth in the company's annual report on Form
10-K filed with the Securities and Exchange Commission on March 31, 1998 and
the company's quarterly report on Form 10-Q filed with the Securities and
Exchange Commission on May 13, 1998.  Copies of the Annual Report on Form 10-K
are available by calling the company's investor relations department at
408-342-1700.
                         CARDIOTHORACIC SYSTEMS, INC.
               CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                          (unaudited, in thousands)

                              Three Months Ended          Six Months Ended
                            July 3,      June 27,       July 3,     June 27,
                              1998         1997          1998          1997

    Net sales               $3,817        $2,836       $6,779        $4,948

    Cost of sales            1,699         1,744        3,302         3,216

    Gross profit             2,118         1,092        3,477         1,732

    Operating expenses:
      Research and
        development          2,675         2,396        5,352         4,447
      Sales, marketing,
        general, and
        administrative       5,867         4,497       10,997         8,806
        Total operating
          expenses           8,542         6,893       16,349        13,253

    Loss from operations    (6,424)       (5,801)     (12,872)      (11,521)

    Interest income, net       594           986        1,292         2,002

    Net loss               $(5,830)      $(4,815)    $(11,580)      $(9,519)

    Net loss per common share
      and per common share -
      assuming dilution     $(0.42)       $(0.36)      $(0.84)       $(0.71)

    Shares used in computing
      net loss per common share
      and per common share -
      assuming dilution     13,890        13,480       13,829        13,419


                    CONSOLIDATED CONDENSED BALANCE SHEETS
                                (in thousands)

                                          July 3,         January 2,
                                            1998            1998
                                         (unaudited)
    Cash, cash equivalents and
      available-for-sale securities       $50,197         $60,834

    Total current assets                   43,104          60,490

    Property and equipment, net             3,640           3,613

    Total assets                           58,969          69,276

    Total current liabilities               5,947           5,619

    Total stockholders' equity            $49,779         $60,134

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