Conor Medsystems

Conor Medsystems and Biotronik Sign International Distribution Agreement for COSTAR® Paclitaxel Drug Eluting Stent

Menlo Park, CA and Bulach, Switzerland, May 27, 2004 - Conor Medsystems, Inc. and Biotronik AG announced today that they have entered into an exclusive international distribution agreement for Conor Medsystems' novel COSTAR® cobalt chromium paclitaxel drug eluting stent.

Under the agreement, Biotronik, a leading manufacturer and global distributor of devices in the area of interventional cardiology, will be the worldwide sole distributor of Conor Medsystems' COSTAR® paclitaxel stent, except for the United States, Japan and some Asia Pacific countries. Biotronik will be responsible for sales and marketing of Conor Medsystems' COSTAR® stent, with distribution commencing immediately upon regulatory approval, anticipated in 2005. Conor Medsystems will retain manufacturing rights and sell the product to Biotronik. Specific terms of the agreement were not disclosed.

"Biotronik has earned its reputation as a European leader in the development and commercialization of innovative products in the field of cardiology," said Frank Litvack, M.D., Chairman and Chief Executive Officer at Conor Medsystems. "Given their strong customer relationships with cardiologists and their well-established global sales force, we look forward to working closely with Biotronik on the introduction and distribution of our new stent product lines."

"We are very pleased to partner with Conor Medsystems, " said Dr. Claus Martini, Managing Director of Biotronik Vascular Intervention. "Conor Medsystems' unique drug delivery technology and flexible cobalt chromium stent design represent important innovations for the treatment of coronary disease, and the addition of COSTAR® strengthens the portfolio of our Vascular Intervention group. Cobalt chromium stents are increasingly in demand by cardiologists, with COSTAR® being potentially the first cobalt chromium drug eluting stent available to the European market."

Conor Medsystems is engaged in several international clinical trials for each of its stent platforms. The EUROSTAR (EUROpean cobalt chromium STent with Antiproliferative for Restenosis) multi-center, multi-dose pivotal study is currently underway to evaluate the safety and performance of Conor Medsystems' COSTAR® drug eluting stent. Conor Medsystems plans to seek worldwide regulatory approval for the COSTAR® stent, with CE Mark application to be submitted later this year. Earlier this week Conor Medsystems announced positive clinical data from the multi-center, multi-dose PISCES study of its stainless steel paclitaxel drug eluting stent at the EuroPCR conference in Paris.

Radically different from conventional drug eluting stents, the Conor Medsystems stent is the first non-surface-coated drug eluting stent designed to provide advanced drug delivery capabilities. Conor Medsystems' proprietary technologies allow release profiles to be tailored to optimize the dosing of a drug and to enable the delivery of multiple compounds to various sites in the body. The drug is housed in reservoirs which are the key to customized release kinetics for the targeted delivery of a broad spectrum of drugs and biologics.

Biotronik
Biotronik is a leading European manufacturer of biomedical technology with a worldwide market presence. The company offers a complete line of products for diagnosis, treatment, and advanced therapy support in the areas of cardiac rhythm management, electrophysiology and vascular intervention. The field of vascular intervention consists of guide wires, balloon catheters and stent systems for coronary and peripheral applications. The company's revolutionary absorbable metal stent recently entered the clinical phase and is scheduled to be launched in mid-2005. For more information, visit Biotronik's website at www.biotronik.com.

Conor Medsystems
Conor Medsystems, founded in 1999, is a pioneer in controlled vascular drug delivery. The company has developed novel stent and polymer technologies specifically designed for delivery of a broad spectrum of therapeutic agents. Conor Medsystems' proprietary technologies allow release profiles to be tailored to the requirements of a drug and enable the delivery of multiple compounds to various sites in the body.

Conor Medsystems is positioned to become a technical, clinical, and market leader in the emerging field of vascular drug delivery with next generation drug delivery stents. The company's initial focus is on the treatment of restenosis and vascular disease, a market expected to exceed $4 billion by 2006. Conor Medsystems is also exploring applications in peripheral vascular disease and additional indications where controlled drug release from a medical device is expected to provide therapeutic advantage. For further information on Conor Medsystems and controlled vascular delivery, visit www.conormed.com.