CardioGenesis Corporation
Ticker: CGCP 540 Oakmead Parkway
Exchange: NASDAQ-National Market Sunnyvale, California 94086
Industry: Manufacturing (408) 328-8500

Type of Shares:Common Shares Filing Date:4/19/96
U.S. Shares:3,000,000 Offer Date:5/21/96
Non-U.S. Shares:0 Filing Range:$14.00 - $16.00
Primary Shares:3,000,000 Offer Price:$20.00
Secondary Shares:0 Gross Spread:$1.40
Offering Amount: $45,000,000 Selling:$0.84
Expenses:$1,000,000 Reallowance:$0.10
Shares Out After:11,927,528

ManagerTierPhone
Bear, Stearns & Co. Inc.Lead Manager (212) 272-2000
Montgomery SecuritiesCo-manager 4156272220
Piper Jaffray IncorporatedCo-manager (612) 342-6000

Auditor: Coopers & Lybrand
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$0.00$0.63$0.00Assets:$14.73
Net Income:-$5.30-$1.88-$0.63Liabilities:$1.35
EPS:-$0.62-$0.22-$0.07Equity:$13.38

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company is developing proprietary methods and systems, including disposable components, to perform both surgical and catheter-based percutaneous transmyocardial revascularization (TMR). TMR is used to treat patients with severe coronary artery disease who suffer from recurrent debilitating chest pain. Unlike coronary artery bypass grafting (CABG) and precutaneous transolumnial coronary angioplasty (PTCA), which are used to bypass, reopen or widen blocked or narrowed arteries, TMR involves the use of laser energy to create typically between 15 and 30 channels in the oxygen-starved regions of the heart muscle. Reports of clinical studies, including preliminary findings in Circulation, a peer-reviewed journal, indicate that groups of patients treated with TMR have experienced significant reductions in chest pain, improved exercise tolerance and increased myocardial blood flow. The company believes that these reported benefits of TMR are associated with angiogenesis, the formation of new blood vessels.

Use of Proceeds
The proceeds from the offering will be used to fund research and development efforts, fund clinical trials, expand sales and marketing activities, expand and develop manufacturing and other facilities and for working capital and other general corporate purposes.

Last updated: 10/28/96

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