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    CRYOCATH ANNOUNCES FISCAL 2006 SECOND QUARTER RESULTS

    Montreal, Quebec, Canada - May 10, 2006 - CryoCath Technologies Inc., the global leader in cryotherapy products to treat cardiovascular disease, today announced financial results for the second quarter, ended March 31, 2006.

    Selected Second Quarter Financial and Operating Highlights

     - Increased revenues by 27% over second quarter of fiscal 2005, from $8.1 million to $10.3 million;

    - Increased gross margins from 60% in second quarter of 2005 to 63% in second quarter of 2006;

     - Increased disposable units sold by 31% over second quarter of fiscal 2005, from 3,291 to 4,299;

    - Installed 55 new surgical and EP console systems;

    - Reported acute data on 84 patients at European Cardiac Conference; 100% of the cases were considered successful with complete isolation of all pulmonary veins with no adverse events reported; and

    - Reported data at the Boston Atrial Fibrillation Symposium; 87% of 15 patients treated in the feasibility stage of the STOP AF trial were AF free at 3-month follow up.

    “CryoCath experienced another period of solid growth during the second quarter of 2006, as evidenced by a 27% year-over-year increase in revenue and a 3% increase in gross margins,” said Steve Arless, President and CEO. “The European data, plus data from the feasibility stage of the STOP AF trial, continues to reinforce our belief that cryotherapy delivered by Arctic Front has the potential to become a gold-standard solution to treat Atrial Fibrillation.”

    The Company’s total sales reached $10.3 million for the second quarter, an increase of 27% over the $8.1 million for the same quarter last year. For the six-month period ending March 31, 2006, sales increased 36% to $19.2 million compared to $14.1 million in the same period a year ago.

    Gross margins for the second quarter of fiscal 2006 were $6.5 million or 63% of sales, an increase from $4.8 million or 60% seen in the second quarter of fiscal 2005. On a six-month year-to-date basis, gross margins were $12.2 million or 63% of sales, versus $8.5 million or 60% from the same period a year ago. The increase in margins was partially the result of lower production costs generated by greater production efficiencies with larger volumes and higher U.S. margins.

    Net research and development expenses for the quarter ended March 31, 2006 were $3.4 million compared to $2.7 million in the same quarter last year. On a six-month year-to-date basis, R&D expenses were $6.0 million versus $4.8 million in the same period in 2005. The increase can be attributed in large part to expenditures incurred in the feasibility phase of the STOP AF IDE study and in preparation for the follow-on pivotal stage. The Company expects research and development costs to increase as it embarks on the pivotal stage of this study.

    Administrative expenses for the second quarter of 2006 increased to $1.4 million from $1.0 million for the same period last year. On a six-month year-to-date basis, administrative expenses were $2.4 million versus, $1.9 million for the same period a year ago. Increases were a result of the Company building for the future as it continues to invest in information technology systems and infrastructure, training, automation and additional human and capital resources.

    The Company’s sales and marketing expenses for the second quarter of 2006 increased to $7.2 million compared to $5.9 million in the same period last year. On a six-month year-to-date basis, sales and marketing expenses were $12.8 million versus $11.2 million for the same period a year ago, but decreased as a percentage of sales to 67% from 79%.

    CryoCath’s net loss for the second quarter ended March 31, 2006 increased to $6.4 million or ($0.17) per share from a loss of $5.5 million, or ($0.15) per share in the second quarter of fiscal 2005.

    While operating burn for the quarter increased to $4.7 million versus $4.1 million in the second quarter of 2005, on a six-month year-to-date basis, the operating burn was reduced to $7.5 million versus $7.8 million in 2005.

    Working capital was $24.9 million as of March 31, 2006, a $5.6 million decrease from $30.5 million as of December 31, 2005. The Company as of March 31, 2006 had access to approximately $30.6 million in cash or borrowing facilities. The Company believes it will continue to be able to access sufficient working capital to meet its current and future requirements.

    “The Arctic Front data out of Europe is providing us with a first glimpse into the potential of this product in a practical, real world setting. The compelling 100% acute success rates, coupled with encouraging chronic results, are translating into growing enthusiasm on the part of physicians,” said Steve Arless. ““However, we continue to control the number of sites participating in the beta-launch until such time as our current manufacturing scale-up issues with Arctic Front are resolved.”

    The Company will host a conference call, with a slide presentation, to discuss the first quarter results on Wednesday, May 10, 2006 at 10:00 am EST. The call will be audio-cast live and archived for 90 days and www.cryocath.com.

    Click here to view the Financial Statements.

    About Medtronic CryoCath

    CryoCath - www.cryocath.com - is a medical technology company that leads the world in cryotherapy products to treat cardiovascular disease. With a priority focus on providing physicians with a complete solution of catheter and surgical products to treat cardiac arrhythmias, CryoCath has multiple products approved in the U.S., across Europe and several other ROW countries. The Company is developing additional products to expand its pipeline of products to treat cardiac arrhythmias and has development projects for the treatment of cardiac ischemia (angina) and peripheral arterial disease (PAD).

    This press release includes “forward-looking statements” that are subject to risks and uncertainties, including with respect to the timing of regulatory trials and their outcome. For information identifying legislative or regulatory, economic, climatic, currency, technological, competitive and other important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, see CryoCath’s annual report available at www.sedar.com under the heading Risks and Uncertainties in the Management’s Discussion and Analysis section.

    For further information, please contact:

    Mike Polonsky
    Phone: (416) 815-0700 ext. 231
    E-mail: mpolonsky@equicomgroup.com