Corautus Completes Private Placement and Closing on Loan Facility

Corautus Completes Private Placement and Closing on Loan Facility



ATLANTA, Sept. 23  /PRNewswire-FirstCall/ -- Corautus Genetics Inc. (AMEX:CAQ)
has recently closed two previously announced financings.

Corautus closed the second of two tranches of a $9.85 million private placement
of common stock and warrants entered into on July 7, 2004 and received the net
proceeds from the second tranche of $4.7 million under the agreement.

Further, Corautus closed on $2.5 million of the convertible debt facility made
available to Corautus by Boston Scientific Corporation (NYSE:BSX) under a loan
agreement established between the companies in July 2003.   Corautus has now
received $20 million of the $25 million commitment from Boston Scientific under
this agreement.

The closing of both transactions was triggered by the treatment of the first
patient in Corautus' Phase IIb clinical trial known as GENASIS for "Genetic
Angiogenic Stimulation Investigational Study."

Richard E. Otto, President and CEO of Corautus stated, "The proceeds from the
closing of these transactions have further strengthened our cash reserves as we
proceed with our GENASIS trial utilizing our proprietary VEGF-2 therapeutic for
the treatment of severe cardiovascular disease."

The GENASIS trial was initiated earlier this calendar quarter and has been
designed to enroll up to 404 patients with Class III or IV angina in
approximately 20 cardiac medical centers in the United States.

About the Technology

VEGF-2 is a growth factor that is believed to promote the development of
supplemental collateral blood vessels, a process known as therapeutic
angiogenesis. In the Phase IIb trial for severe cardiovascular disease, VEGF-2
is delivered to the ischemic tissue in the heart muscle in the form of naked
DNA plasmid, a non-viral vector. Once administered, the DNA plasmid appears to
be taken up and expressed by myocardium near the injection site. Inside the
cell, the DNA plasmid then enters the nucleus of the cell without a requirement
of incorporation into the genomic DNA. The Phase IIb clinical trial expects to
see the effect of the expression of DNA-encoded VEGF-2, which in turn
stimulates the growth of new blood vessels by promoting the migration and
proliferation of endothelial cells in the heart.

About Corautus Genetics Inc.

Corautus Genetics Inc. is a clinical-stage biopharmaceutical company dedicated
to the development of gene transfer therapy products for the treatment of
severe cardiovascular and peripheral vascular disease. Corautus is currently
developing and testing a gene transfer product using the Vascular Endothelial
Growth Factor-2 (VEGF-2) gene to promote therapeutic angiogenesis in ischemic
muscle. In July 2003, Corautus entered into a strategic alliance with Boston
Scientific Corporation to develop, commercialize and distribute the VEGF-2 gene
therapy products. For more information, please visit http://www.corautus.com/ .

Forward-Looking Statement

This press release may contain forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such statements are subject to certain factors, risks and uncertainties that
may cause actual results, events and performances to differ materially from
those referred to in such statements. These risks include statements which
address operating performance, events or developments that we expect or
anticipate will occur in the future, such as projections about our future
results of operations or our financial condition, adequacy of funding, benefits
from the alliance with Boston Scientific, research, development and
commercialization of our product candidates, anticipated trends in our
business, manufacture of sufficient and acceptable quantities of our proposed
products, approval of our product candidates, meeting additional capital
requirements, and other risks that could cause actual results to differ
materially. These risks are discussed in Corautus Genetics Inc.'s Securities
and Exchange Commission filings, including, but not limited to, the risk
factors in Corautus' Annual Report on Form 10-K for the year ended December 31,
2003 (File No. 001-15833) filed March 30, 2004, which are incorporated by
reference into this press release.

CONTACT: Investor Relations, Jack W. Callicutt of Corautus Genetics Inc.,
404-526-6200, or fax, 404-526-6218; and Media Relations, Justin Jackson of
Burns McClellan, on behalf of Corautus Genetics Inc., 212-213-0006 

DATASOURCE: Corautus Genetics Inc.



CONTACT:  Investors, Jack W. Callicutt of Corautus Genetics Inc.,

[phone], or fax, [phone]; or Media, Justin Jackson of Burns

McClellan, [phone], for Corautus Genetics Inc.



Web site:  http://www.corautus.com/ 

Copyright