Guidant Announces Preliminary First Quarter 2006 Sales

Guidant Corporation (NYSE:GDT) today announced
preliminary, unaudited first quarter revenues of approximately $894
million, reflecting a decline of approximately 6 percent versus the
first quarter of 2005, and growth of 8 percent versus the fourth
quarter of 2005. Preliminary, unaudited U.S. and worldwide implantable
defibrillator sales for the quarter are approximately $308 million and
$419 million, respectively, representing declines of 16 percent and 12
percent, respectively, compared to the first quarter of 2005, and
growth of 13 percent each compared to the fourth quarter of 2005.
   The company also indicated that first quarter income and earnings
per share will reflect the impact of previously disclosed items,
including:

   --  A pre-tax charge of approximately $15 million related to the
        write-off of existing XIENCE V(TM) drug-eluting stent
        inventory.

   --  A pre-tax expense of $67-$77 million in connection with the
        accelerated vesting of restricted stock awards upon the recent
        Guidant shareholder approval of the Boston Scientific
        transaction.

   --  An in-process research & development pre-tax charge of $40
        million related to a payment to AFx, inc. for the satisfaction
        of a clinical milestone.

   In addition, first quarter income and earnings per share will
include charges related to product recall and field action-related
product liability charges as well as employee retention programs and
other merger-related expenses which have yet to be determined.
   Guidant Corporation pioneers lifesaving technology, giving an
opportunity for better life today to millions of cardiac and vascular
patients worldwide. The Company develops, manufactures and markets a
broad array of products and services that enable less invasive care
for some of life's most threatening medical conditions. For more
information, visit www.guidant.com.

   NOTE TO MEDIA: For more information about Guidant, including
products, services and patient profiles, please visit the company's
newsroom at www.guidant.com/newsroom.