IRVINE, Ca. and WAYNE, Pa. Oct. 22 /PRNewswire/ -- CardioVascular
Dynamics, Inc. (Nasdaq: CCVD) (CVD) and Escalon Medical Corporation (Nasdaq:
ESMC) today announced they have entered into a letter of intent whereby CVD
will sell the assets and operations of its Vascular Access Business Unit to
Escalon.
    Under the terms of the agreement, CVD will receive an initial payment, a
payment upon the transferring of the assets and technology, and royalties on
sales for a period of five years.  The sale is subject to various conditions
including the negotiation and execution of a definitive sale agreement.
Subject to such conditions, CVD and Escalon anticipate closing the transaction
in the fourth quarter of 1998.  Further terms were not disclosed.
    Commenting on the transaction, Jeffrey O'Donnell, CVD President and Chief
Executive Officer said, "Our goal is to focus CVD like a bullet in flight.
With the divestiture of our Vascular Access Unit and the potential acquisition
of Radiance Medical Systems, Inc., CVD will be better poised to focus all of
its efforts and resources to bringing its proprietary technologies to the
interventional cardiology market."
    Escalon Chairman and Chief Executive Officer, Richard J. DePiano said,
"The acquisition of CVD's Vascular Access Business allows us to diversify our
target markets and demonstrates Escalon's strategy of investing in profitable
niche products and markets where the Company can become a market leader.  The
business will be folded into our FDA-approved manufacturing plant in Wisconsin
and will utilize excess capacity at this facility, while the products will
continue to be sold through existing distributors.  We look forward to
completing the transaction and believe it will create value for both parties."
    CVD acquired the vascular access technology in a license agreement with
Advance Cardiovascular Systems, Inc. in March 1996.  Vascular Access
technology involves the use of a tiny doppler ultrasound circuit placed at the
tip of a specially-designed vascular access needle on a catheter.  When placed
in proximity to the vascular system, Vascular Access devices can help the
physician locate the blood vessel, determine whether the vessel is an artery
or vein, and provide access to the intended vascular site.  Once in position
within the vessel, the physician can begin the planned treatment via the
conduit created by the Vascular Access device.  During the past two years, CVD
engineers have miniaturized this doppler chip technology to less then 10
thousands of an inch (0.010").  This small size is required to locate the tiny
arteries and veins of small infants.
    Founded in 1987, Escalon develops, markets and distributes ophthalmic
surgical and pharmaceutical products which provide a base of positive cash
flow to fund a targeted research and development effort.  The Company utilizes
strategic partnerships to help finance its development programs and is also
seeking acquisitions to further diversify its product line to achieve critical
mass in sales and take better advantage of the Company's distribution
capabilities.  Escalon has headquarters in Wayne, Pa. and manufacturing
operations near Milwaukee, Wis.
    CVD develops peripheral and coronary stents, coronary stent delivery
systems, balloon dilatation catheters for coronary and peripheral vascular
use, and site-specific drug delivery catheters for the delivery of radiation
to prevent reoccurrence following the interventional treatment of
atherosclerosis.
    Except for historical information contained herein, this press release
contains forward looking statements, the accuracy of which are necessarily
subject to risks and uncertainties.  Actual results may be affected by, among
other things, risks and uncertainties related to the negotiation and execution
of acquisition documents, the failure to obtain requisite approval, new
product development and introduction cycles, research and development
activities, including failure to demonstrate clinical efficacy, delays by
regulatory authorities, scientific and technical advances by CVD or third
parties, introduction of competitive products, third party reimbursement and
physician training, and other risk factors and matters set forth in CVD's
Annual Report on Form 10-K for the year ended December 31, 1997 and the
Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 1998
and Escalon's Annual Report on Form 10-K for the fiscal year ended June 30,
1998 and Amendment No. 3 of the Registration Statement on Form 3 (Registration
Statement No. 333-44513), which has been filed with the Securities and
Exchange Commission.

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