Edwards Lifesciences Completes Acquisition of Percutaneous Valve Technologies for $125 Million

IRVINE, Calif., Jan. 27 -- Edwards Lifesciences Corporation (NYSE: EW), a global leader in medical technologies to treat advanced cardiovascular disease, and the world's number-one heart valve company, announced today that it has completed its acquisition of Percutaneous Valve Technologies, Inc. (PVT), a privately held medical technology company based in Fort Lee, NJ with a subsidiary in Caesarea, Israel. Edwards had announced its intent to acquire PVT in December of 2003.

Under terms of the agreement Edwards is paying the shareholders of PVT $125 million cash, plus up to an additional $30 million in payments upon the achievement of key milestones. Consistent with earlier disclosures, the company expects to take an initial in-process research and development charge related to this transaction in the first quarter of 2004, estimated to be between $60 million and $90 million ($1.00 to $1.50 per share).

The acquisition of PVT reinforces Edwards Lifesciences' leadership role in replacement and repair of heart valves through catheter-based technologies. PVT's technology is an innovative, catheter-based (percutaneous) approach for replacing aortic heart valves, a proprietary combination of a percutaneously delivered balloon-expandable stent technology integrated with a tissue heart valve. Unlike conventional open-heart valve replacement surgery, this less invasive procedure can be performed under local anesthesia, and is a breakthrough for patients who are not candidates for surgery today. Edwards estimates that total sales of catheter-based valve repair and replacement products could exceed $1 billion over the next decade.

""We are pleased at how smoothly this transaction has been completed, and we're looking forward to bringing this technology to market quickly,"" said Michael A. Mussallem, Edwards' Chairman and CEO. ""Our due-diligence on PVT's products, people and intellectual capital has reinforced our enthusiasm about the promise that this technology holds for patients.""

PVT was founded by Stanton Rowe and Stanley Rabinovich, the company's CEO and COO, respectively, along with Martin Leon, MD, president and chief executive officer of the Cardiovascular Research Foundation in New York, and Alain Cribier, MD, chief of Cardiology of University Hospital in Rouen, France.

""We are excited about Stan Rowe and his entire team joining us at Edwards,"" continued Mussallem. ""Stan's leadership abilities, and the depth of experience among the people at PVT, will be important additions to our team.""

The first human implant of PVT's valve was performed in April 2002 by Dr. Alain Cribier, who has treated 17 patients to date and is conducting a prospective clinical trial in France. Edwards plans to file for a Humanitarian Device Exemption (HDE) with the FDA in 2005, which would allow for commercial use in a limited number of patients. CE Mark also is anticipated in Europe in 2005.

Percutaneous Devices Intended for a New and Growing Population

Each year, an estimated 300,000 people worldwide undergo heart valve replacement or repair surgery. Edwards expects the number of surgical heart valve procedures to continue growing, due in part to the overall increasing incidence of cardiovascular disease, compounded by an aging global population.

Current surgical treatments of heart valve disease offer excellent long-term outcomes as biological valve technology and surgical techniques have improved. Percutaneous heart valve therapies could be especially promising for those patients who are not being treated today because they are not candidates for surgery.

About Edwards Lifesciences

Edwards Lifesciences, a leader in advanced cardiovascular disease treatments, is the number-one heart valve company in the world, and the global leader in acute hemodynamic monitoring. Headquartered in Irvine, Calif., Edwards focuses on four main cardiovascular disease states: heart valve disease, coronary artery disease, peripheral vascular disease and congestive heart failure. The company's global brands, which are sold in approximately 100 countries, include Carpentier-Edwards, Cosgrove-Edwards, Swan-Ganz, and Fogarty. Additional company information can be found at www.edwards.com .

Edwards Lifesciences and Edwards are trademarks of Edwards Lifesciences Corporation. Carpentier-Edwards, Cosgrove-Edwards, Swan-Ganz and Fogarty are trademarks of Edwards Lifesciences Corporation and are registered in the U.S. Patent and Trademark Office.

This news release includes forward-looking statements that involve risks and uncertainties, including those related to the success of preclinical and clinical studies of percutaneous heart valve replacement, the potential size of the catheter-based heart valve repair and replacement market, the potential for Edwards to provide these technologies to non-surgical candidates even sooner, the ability of this transaction to further strengthen the company's global leadership, and, more generally, the ability to consummate targeted technology investments and acquisitions; timing or results of pending or future clinical trials, actions by the U.S. Food and Drug Administration and European Union, technological advances in the medical field, product demand and market acceptance, the effect of changing economic conditions, the impact of foreign exchange, and other risks detailed in the company's filings with the Securities and Exchange Commission. These forward-looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements.

Contact Information :
Media, Barry R. Liden, +1-949-250-5070, or Investors, David K. Erickson, +1-949-250-6826, both of Edwards Lifesciences Corporation

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