WILMINGTON, Mass., July 9 /PRNewswire-FirstCall/ -- CardioTech International, Inc. (AMEX:CTE), a developer and manufacturer of advanced materials and medical devices for the treatment of cardiovascular and other diseases, announced today that its agreement to sell its Gish Biomedical, Inc. subsidiary in a stock transaction to Medos Medizintechnik AG ("Medos") for a purchase price of approximately $7.5 million closed on July 6, 2007.
Of the purchase price, $1.0 million will be held in a one-year cash escrow to fund CardioTech's post-closing indemnification obligations to Medos, if any. After estimated transaction costs of $500,000 and the escrow funding, CardioTech expects to realize approximately $6.0 million in cash from the sale of Gish. The terms of the agreement provide that CardioTech retains all cash on Gish's balance sheet. The Company will use the net cash proceeds to fund its growth initiatives focused on selling complex medical devices and licensing and selling its ChronoFlex(R) family of specially formulated polymers to medical device manufacturers.
About CardioTech International: CardioTech International, Inc. is a medical device company that designs, develops, manufactures and sells innovative products and materials for the treatment of cardiovascular, orthopedic, oncology, urology and other diseases. The Company's business model calls for leveraging its technological and manufacturing expertise in order to expand its royalty and license fee income, develop next generation polymers and manufacture new and complex medical devices. CardioTech is conducting its first clinical trial for regulatory approval in Europe for its CardioPass(TM) synthetic coronary bypass graft. The Company generates revenues from sales of advanced medical devices and materials, as well as from contracted product design and development services. More information about CardioTech is available at its website: http://www.cardiotech-inc.com/.
Forward-Looking Statements: CardioTech believes that this press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause results to differ materially from the forward-looking statements. For further information on such risks and uncertainties, you are encouraged to review CardioTech's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended March 31, 2007. CardioTech assumes no obligation to update any forward-looking statements as a result of new information or future events or developments, except as required by law.
For Further Information Contact:
Eric Walters Sylvia Dresner
Vice President & Chief Financial Officer Senior Vice President
CardioTech International, Inc. VMW Corporate & Investor
Relations
978-657-0075 212-616-6161
http://www.newscom.com/cgi-bin/prnh/20070322/CLTH022LOGO http://photoarchive.ap.org/ DATASOURCE: CardioTech International, Inc.
CONTACT: Eric Walters, Vice President & Chief Financial Officer of CardioTech International, Inc., +1-978-657-0075, ; or Sylvia Dresner, Senior Vice President of VMW Corporate & Investor Relations for CardioTech International, Inc., +1-212-616-6161, Web site: http://www.cardiotech-inc.com/
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