CABG Medical Announces 2004 Results

CABG Medical Announces 2004 Results 


MINNEAPOLIS, March 2  /PRNewswire-FirstCall/ -- CABG Medical, Inc.
(NASDAQ:CABG), the developer of an innovative drug-eluting graft for coronary
artery bypass surgery, today reported results for the year ended 2004. Revenue
for the year ended 2004 was $21,000 compared to no revenue for 2003. Net loss
for the year ended 2004 was $3.5 million, or $0.34 per share, compared to $1.5
million, or $0.17 per share, for the year ended 2003.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20050114/CGF013LOGO )

Manny Villafana, Chairman and Chief Executive Officer of CABG Medical,
commented, "We are proud to report that 2004 was a year of tremendous
excitement and accomplishment for all associated with our organization.  We
advanced from a development program to an entity prepared to begin human
clinical trials.  We initiated the training of our international distribution
network, which in turn has helped us identify highly qualified medical
professionals to execute our clinical trials."

"In addition, in 2004 we solidified our financial condition through an initial
public offering, recruited an outstanding Board of Directors and strengthened
our Scientific Advisory Board," said Mr. Villafana.  "In November 2004,
surgeons in Brisbane, Australia, implanted the first Holly Graft System in a
human.  Eight days later the patient went home for Christmas with his family
and continues to experience life symptom free."

"Looking ahead to 2005, we expect to initiate our clinical trials in Australia
and in Europe, with leading centers in Germany and Spain.  In the second half
of 2005 we believe we will be able to present the first initial follow-up
results from our international human clinical sites and initiate human cases in
the United States," concluded Mr. Villafana.

About CABG Medical

CABG Medical, Inc. is a medical device company developing drug-eluting
technologies and therapies to improve the treatment of coronary heart disease,
or CHD, by advancing conventional bypass surgery. We have designed our first
product, the Holly Graft System, by leveraging our understanding of flow
dynamics, material sciences and drug combinations to create a drug-eluting
coronary graft system.

Safe Harbor

Certain statements in this release that are not historical facts, including,
without limitation, those relating to our expectation regarding the
commencement of clinical trials in 2005 in Australia and Europe, our
expectation regarding the initiation of human cases in the United States in
2005, and our anticipation that we will be able to present in 2005 the first
follow-up results from such clinical trials, are forward-looking statements
that involve risks and uncertainties.  Such statements are based upon the
current beliefs and expectations of our management.  Actual results may vary
materially from those contained in such forward-looking statements based on a
number of factors including, without limitation, our need to obtain regulatory
approval in each relevant jurisdiction prior to the initiation of any clinical
trials or human cases in such jurisdiction, the selection of clinical sites,
the completion of such trials and cases, and other factors disclosed from time
to time in our filings with the U.S. Securities and Exchange Commission.
Investors should take such risks into account when making investment decisions.
 Shareholders and other readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date on which they
are made.  We undertake no obligation to update any forward- looking
statements.

                            CABG Medical, Inc.
                         Statements of Operations

                           Three months ended            Year Ended
                              December 31,               December 31,
                            2003         2004         2003         2004
                      (In thousands, except share and per share amounts)
  Revenue                     $-          $21           $-          $21
  Expenses:
    Research and development 421        1,007        1,153        2,647
    Marketing, general and
     administrative          168          400          405          996
  Total                      589        1,407        1,558        3,643
  Interest income              6           46           16           71
  Net loss                 $(583)     $(1,340)     $(1,542)     $(3,551)
  Basic and diluted net
   loss per share         $(0.06)      $(0.11)      $(0.17)      $(0.34)
  Weighted average shares
   outstanding -- basic
   and diluted         9,352,294   11,773,524    8,967,308   10,298,639



                            CABG Medical, Inc.
                              Balance Sheets

                                                         December 31,
                                                     2003           2004

                                                       (In thousands)

    Assets
  Current assets:
  Cash and short term investments                   $1,737        $28,936
  Other current assets                                  30            291
  Total current assets                               1,767         29,227
  Property and equipment, net                           74            199
  Total assets                                      $1,841        $29,426

    Liabilities & Stockholders' Equity

  Current liabilities:
  Accounts payable                                     $74           $841
  Accrued liabilities                                   84             19
  Total current liabilities                            158            860
  Total stockholders' equity                         1,683         28,566
  Total liabilities and stockholders' equity        $1,841        $29,426


http://www.newscom.com/cgi-bin/prnh/20050114/CGF013LOGO

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DATASOURCE: CABG Medical, Inc.



CONTACT:  Manny Villafana, Chairman & CEO, or John L. Babitt, President &

COO, both of CABG Medical, Inc., [phone], or fax, [phone]



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

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