CUPERTINO, Calif., Sept. 3 /PRNewswire/ -- CardioThoracic Systems, Inc.
(CTS) (Nasdaq: CTSI) announced today that it expects revenues for the third
quarter ending September 26, 1997 to fall significantly below analysts'
estimates.
    "The growing acceptance of minimally invasive beating heart bypass surgery
and the significant opportunity it represents has attracted a number of
leading technology companies to this emerging market.  We believe that over
time this increased competition will expand the size of the overall market as
more surgeons learn to perform minimally invasive bypass surgery on a beating
heart," said Richard Ferrari, CTS president and chief executive officer.  "In
order to address the current market conditions, we are in the process of
reorganizing our field sales force, clinical trainers and COR training
programs to help accelerate adoption of minimally invasive beating heart
bypass in the second-tier bypass centers and the clinical adoption of multiple
vessel beating heart procedures in the larger cardiac centers.  Given the
contributing factors of increased competition, a more lengthy evaluation
period for the products in the second-tier bypass centers at this stage of
market development, a shift to more multiple vessel off-pump bypasses and
seasonal variation, we expect third quarter revenues to be in the range of
$1.5 million to $2.2 million."
    Ferrari continued, "While we are disappointed with anticipated third
quarter revenues, we are pleased to report that product development milestones
and target dates for our new product offerings are on track.  We are excited
about the commercial launch this month of our second generation product, the
ACCESS MV(TM) System, which is designed to address multiple vessel bypass on a
beating heart by allowing surgeons to achieve greater anatomical reach,
increased stabilization of the heart and easier access for multiple vessel
procedures.  CTS believes this new system should gain acceptance in larger
bypass centers as it expands the market into multiple vessel bypasses on a
beating heart."
    CardioThoracic Systems, Inc., Cupertino, Calif., is a leading developer of
proprietary technologies in minimally invasive cardiothoracic surgery.  The
company's first released product, the CTS MIDCAB(TM) System, is a single-use
set of instruments designed to enable cardiothoracic surgeons to perform
minimally invasive cardiac surgery on a beating heart.  CTS is also developing
technologies in the areas of minimally invasive heart valve repair and
replacement and saphenous vein harvesting.  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 availability and
market acceptance of our new products as well as the availability and market
acceptance of competitors' products and procedures, clinical adoption of the
minimally invasive beating heart bypass procedure, the success of our
reorganization of the field sales force, clinical trainers and COR training
programs and the timing and receipt of FDA clearance.  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, 1997 and the company's quarterly report on
Form 10-Q filed with the Securities and Exchange Commission on August 8, 1997.
Copies of the annual report on Form 10-K and the quarterly report on Form 10-Q
are available by calling the company's investor relations department at
408-342-1700.
    For more information on CardioThoracic Systems, Inc. via fax at no cost,
dial 800-PRO-INFO (908-544-2850 outside the U.S.), ticker symbol: CTSI.

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