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    CryoCath Announces Fiscal 2007 Third Quarter Results

    Montreal, Quebec, Canada - August 9, 2007 - CryoCath Technologies Inc., the global leader in cryotherapy products to treat cardiovascular disease, today announced financial results for the third quarter, ended June 30, 2007.

    Selected Third Quarter Financial and Operational Highlights:

    - Reported record third quarter revenue of $11.7 million, a 20.5% quarter-over-quarter increase

    - Revenue in core EP business grew by 37.8% quarter over quarter to $8.3 million, reflecting strong performance of Arctic Front® in Europe

    - Increased gross margins to 58.0% from 50.5% in the third quarter of 2006

    - Transformation of company into a high growth pure play EP/AFib company with relentless focus on its blockbuster potential through Arctic Front approval in the US and driving rapid profitable growth in Europe.

    - Completed sale of surgical portfolio to ATS Medical in a cash transaction valued at US$22 million. With milestone payments, the agreement could increase in value to reach a total of US$30 million. These proceeds provide sufficient financial means to fund operations into the US launch of Arctic Front.

    “The third quarter of 2007 was one of solid revenue growth while we also made significant progress in several key strategic areas. We achieved record sales, driven by a marked uptake in growth of our core EP business,” said Jan Keltjens, President and CEO. “This increase in EP revenue is composed of ongoing growth in our core focal cryoablation business, compounded by the rapidly accelerating growth in the number of Atrial Fibrillation ablations utilizing our flagship Arctic Front system in an increasing number of trained sites in Europe. Last but not least, we successfully completed the sale of our surgical portfolio to ATS Medical, providing financial runway to the US commercial launch of Arctic Front while creating the required focus on this blockbuster opportunity”.

    “We also made good progress towards our goal of achieving Arctic Front approval in the US. We continue to believe that we can complete enrolment towards the end of this calendar year. Furthermore the on-going clinical results that we receive from commercial use in Europe continue to create confidence in the efficacy of our products.”

    The Company’s total sales reached $11.7 million for the third quarter, an increase of 20.5% over the $9.7 million for the same quarter last year. For the nine-month period ending June 30, 2007, sales increased 14.6% to $33.1 million compared to $28.9 million in the same period a year ago.

    Gross margins for the third quarter of fiscal 2007 were $6.8 million or 58.0% of sales, an increase over the $4.9 million or 50.5% seen in the third quarter of fiscal 2006. On a nine-month year-to-date basis, gross margins were $20.1 million or 60.7% of sales, versus $16.7 million or 57.6% from the same period a year ago. The increase in gross margins reflects higher revenues and the impact of ongoing improvements in our manufacturing operation, partially offset by mix and one-time charges taken last year.

    The Company’s sales and marketing expenses for the third quarter of 2007 decreased to $6.8 million compared to $7.1 million in the same period last year. On a nine-month year-to-date basis, sales and marketing expenses were $19.1 million versus $20.0 million for the same period a year ago. The decreases are associated with lower headcount and better control over discretionary expenses.

    Net research and development expenses for the quarter ended June 30, 2007 was $3.4 million compared to $3.2 million in the same quarter last year primarily as a result of higher clinical costs. On a nine-month year-to-date basis, net R&D expenses were $8.6 million versus $9.3 million in the same period in 2006. The decrease year to date is due to a significant decrease in non-core R&D projects partly offset by higher clinical costs incurred in the STOP AF IDE trial.

    Administrative expenses for the third quarter of 2007 increased to $1.8 million from $1.7 million for the same period last year. On a nine-month year-to-date basis, administrative expenses were $4.9 million versus $4.1 million for the same period a year ago. The increase in both periods is driven by continued spending to develop the robust infrastructure to support rapid and sustainable growth.

    Other expenses, primarily composed of non-cash items, totaled $2.8 million in the quarter as compared to $1.5 million in the same quarter last year. For the nine months year to date, other expenses were $5.1 million compared to $3.5 million last year. The increased expense in both periods was driven by foreign exchange losses due to the appreciation of the Canadian dollar and high interest expense related to the additional debt taken on in July 2006.

    CryoCath’s net income for the third quarter ended June 30, 2007 was $2.4 million or $0.06 per share as a result of the $10.1 million gain recorded on the sale of the surgical business. In the third quarter of fiscal 2006, the company recorded a net loss of $8.4 million or ($0.22) per share. On a nine month year-to-date basis, the company posted a net loss of $7.2 million or ($0.19) per share. For the same period one year ago, the company recorded a net loss of $19.5 million or ($0.52) per share.

    Operating burn for the quarter decreased by 17.0% to $4.7 million versus $5.6 million in the third quarter of 2006. On a nine-month year-to-date basis, operating burn decreased to $10.0 million from $13.3 million in 2006. The decrease in burn is primarily related to higher revenues and gross margins.

    The Company, as of June 30, 2007, had access to approximately $35.3 million in cash and borrowing facilities. The increase is the direct result of the sale of the surgical portfolio to ATS Medical and provides sufficient runway to the US commercial launch of Arctic Front expected in late 2009.

    The Company will host a conference call to discuss the second quarter results on Friday, August 10, 2007 at 8:30 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 products to treat cardiac arrhythmias, CryoCath has multiple products approved in the U.S., across Europe and several ROW countries. The Company is developing additional products to expand its pipeline of products to treat cardiac arrhythmias. 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:

    Ross Marshall
    Phone: 416 815 0700 ext. 238
    E-mail: rmarshall@equicomgroup.com

    Ross Marshall
    Phone: 416 815 0700 ext. 238
    E-mail: rmarshall@equicomgroup.com