Cardima, Inc.
Ticker:CRDM 47266 Benicia Street
Exchange:NASDAQ-National Market Fremont, CA 94538
Industry:Manufacturing (SIC Code 3845) (510) 354-0300

Offering Information
Type of Shares:Common Shares Filing Date:3/13/97
U.S. Shares:2,275,000 Offer Date:6/5/97
Non-U.S. Shares:0 Filing Range:$10.00 - $12.00
Primary Shares:2,275,000 Offer Price:$7.00
Secondary Shares:0 Gross Spread:$0.49
Offering Amount: $25,025,000 Selling:$0.29
Expenses:$950,000 Reallowance:$0.10
Shares Out After: -

Primary Underwriting Group
ManagerTierPhone
Bear, Stearns & Co. Inc.Lead Manager (212) 272-4850
Dain Bosworth IncorporatedCo-manager (612) 371-2818

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Venture Law Group
Bank's Law Firm: Gunderson Dettmer Stough Villeneuve Franklin
Auditor: Ernst & Young
Registrar/Transfer Agent: U. S. Stock Transfer Corporation

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 12/31/96
Revenue:$0.59Assets:$3.96
Net Income:-$7.75Curr Assets:
EPS:-$1.23Liabilities:-$6.40
Prior EPS:Curr Liabilities:
Cash Flow/Oper:-$6.66Equity:$10.37
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company designs, develops, manufactures and markets minimally invasive, single-use, microcatheter-based systems for the mapping and ablation of the two most common forms of cardiac arrhythmias: atrial fibrillation and ventricular tachycardia. The company is developing microcatheter systems designed to provide enhanced access to arrhythmia causing tissue, to diagnose the arrhythmia by locating its origin and to restore normal heart rhythms by isolating and destroying the arrhythmia causing sites using radiofrequency energy. The company's microcatheters incorporate multiple electrodes in the catheter tip that are designed to receive electrical signals for mapping and to emit RF energy for ablation, allowing physicians to both map and ablate using a single catheter. The company's microcatheters are designed with variable stiffness and a highly flexible distal tip to allow enhanced access to the vasculature of the heart. In addition, they are designed to be compatible with existing signal display systems and RF generators, eliminating the need for significant new investment in capital equipment.

Use of Proceeds
The proceeds from the proposed offering will be used to fund preclinical and clinical trials of its microcatheter systems, research and new product development, to continue to expand its marketing and sales force, to fund capital equipment investment to increase manufacturing capabilities and for working capital.

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