Healthcare Industry News:  cryoablation 

Devices Cardiology Acquisitions

 News Release - June 19, 2007

CryoCath to sell surgical portfolio to ATS Medical in US$22 million transaction

MONTREAL, June 19 (HSMN NewsFeed) - CryoCath Technologies Inc. (TSX: CYT ), the global leader in cryotherapy products to treat cardiac arrhythmias, today announced an agreement to sell their surgical portfolio to ATS Medical in a US$22 million cash transaction. With milestone payments, the agreement could reach a value of US$30 million. This strategic transaction is designed to enable CryoCath to focus on their line of electrophysiology products for treating atrial fibrillation and other arrhythmias, and will augment ATS's current cardiac surgery portfolio.

CryoCath's surgical products are defined as its line of argon-based cardiac surgical cryoablation devices, including products known under the FrostByte® and SurgiFrost® names. Under the terms of the agreement, CryoCath will receive US$22 million cash at closing, $2.0 million upon the achievement of certain manufacturing transition milestones, $2.0 million two years after closing and up to $4.0 million based on future sales of SurgiFrost® XL, planned for commercial release in the second half of 2007.

"The sale of our surgical business marks a significant milestone in our strategy to transition CryoCath into a focused and fast growing electrophysiology cryoablation company," said Jan Keltjens, President and CEO of CryoCath. "It also advances CryoCath towards the accomplishment of two core goals. First, we now have a clear financial pathway to the U.S. approval and launch of Arctic Front, our flagship product targeting the US$2 billion atrial fibrillation opportunity. Secondly, we can focus to achieve rapid, profitable growth in Europe for our EP-Afib business. Due to this increased focus as well as the non-dilutive nature of the financing, we believe this transaction creates great value for our shareholders."

"We are excited about the benefits that owning CryoCath's surgical cryoablation business will bring to ATS Medical," said Michael Dale, President and Chief Executive Officer of ATS Medical. "This innovative technology enables us to dramatically leverage our current operating infrastructure and provides us with a technological roadmap to address the rapidly-growing surgical cardiac arrhythmia market in both the short and long-term."

The acquisition is subject to normal closing conditions and is expected to close within 10 days. HSBC Securities (USA) Inc. acted as financial advisor and Davies Ward Phillips & Vineberg LLP acted as legal advisor to CryoCath. RBC Capital Markets acted as exclusive financial advisor and Oppenheimer Wolff & Donnelly LLP acted as legal advisor to ATS Medical.

A CryoCath analyst and institutional investor conference call will be held Wednesday, June 20 at 8:00 am (EST) to discuss the announcement. The call will be webcast live at and archived for 90 days.

About CryoCath

CryoCath - - is a medical technology company that leads the world in cryotherapy products to treat cardiovascular disease. With a priority focus on providing physicians with a complete solution of catheter products to treat cardiac arrhythmias, CryoCath has multiple products approved in the U.S., across Europe and several ROW countries. The Company is developing additional products to expand its pipeline of products to treat cardiac arrhythmias.

This press release includes "forward-looking statements" that are subject to risks and uncertainties, including with respect to the timing of regulatory trials and their outcome. For information identifying legislative or regulatory, economic, climatic, currency, technological, competitive and other important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, see CryoCath's annual report available at under the heading Risks and Uncertainties in the Management's Discussion and Analysis section.

Source: CryoCath Technologies

Issuer of this News Release is solely responsible for its content.
Please address inquiries directly to the issuing company.

FindReps - Find Great Medical Independent Sales Reps without recruiter fees.
FindReps - available on the Apple App Store for iPhone and iPad.