Five and Under

[cintrix]

CGCP - delisted:
CardioGenesis to Be Listed on OTC Bulletin Board


/FROM PR NEWSWIRE LOS ANGELES 213-626-5500/
TO BUSINESS EDITOR:

CardioGenesis to Be Listed on OTC Bulletin Board

Company Secures $2 Million Asset-Based Revolving Credit Facility

FOOTHILL RANCH, Calif., April 2 /PRNewswire-FirstCall/ --
CardioGenesis Corporation (Nasdaq: CGCPC), the market leader in
angina-relieving Transmyocardial Revascularization (TMR) and Percutaneous
Myocardial Revascularization (PMR), announced today that with the opening of
business on Thursday, April 3, 2003, its Common Stock will be delisted from
The Nasdaq SmallCap Market and be eligible for immediate quotation on the OTC
Bulletin Board that same day. The OTC Bulletin Board symbol for the Company's
Common Stock will be CGCP.
On March 4, 2003, CardioGenesis announced that it had been notified by
Nasdaq that it failed to meet the Minimum Bid Price requirement and a Nasdaq
Listing Qualifications Panel had granted the Company a temporary exception
from that requirement subject to its meeting certain conditions. At that time
the Company said it was pursuing a number of options to meet the Minimum Bid
Price requirement including the consideration of a reverse split of its Common
Stock. According to the notification received by CardioGenesis on April 1,
2003, the Company failed to comply with the terms of the exception and
accordingly the Company's securities will be delisted from the Nasdaq Stock
Market.
CardioGenesis also announced today that it has received a $2 million
revolving credit facility in the form of a three-year Convertible Note secured
by assets of the Company. The Note was arranged through Laurus Master Fund,
Ltd. The funds will be used to help finance the Company's efforts to obtain
approval of its pending PMA (pre-market approval) application for its PMR
System from the U.S. Food and Drug Administration (FDA), and, if needed, to
fund ongoing operations. This credit facility replaces an earlier accounts
receivable financing with a finance company that was scheduled to be renewed
in July 2003 and which had no outstanding borrowings.
CardioGenesis Chairman and CEO Michael J. Quinn said, "The Board and
senior management seriously considered asking our shareholders to approve a
reverse split of our stock, which could have helped us meet Nasdaq's minimum
bid price requirement of $1.00. We concluded, however, that it is essential
at this time to focus all of our attention, efforts and resources on achieving
our goals of driving the growth of our TMR business, gaining approval of PMR
and building for the future. After we meet these goals, I believe we should
be well positioned to once again apply for listing on a major national
exchange.
"We have been able to grow the revenue of our TMR business in the last
several quarters while reducing our cash requirements," Quinn added.
"Securing this $2 million credit facility is a key accomplishment for the
Company. By establishing this new ready source of liquidity, we will be able
to take the actions needed to provide our best opportunity for approval of
PMR, while we continue to grow our TMR business in 2003."
The Note can be converted to equity at a fixed conversion price of
$0.30 per share. In conjunction with the transaction, the Company issued
275,000 five-year warrants at exercise prices ranging from $0.35 to $0.44 per
share. Interest on the Note is at Prime plus 3.75 percent. Under the terms
of the Note, the Company may draw down funds on a revolving basis based upon
accounts receivable levels.
Details of the financing will be filed with the Securities and Exchange
Commission on Form 8K on or before April 4.

About CardioGenesis Corporation
CardioGenesis is a medical device company specializing in the treatment of
cardiovascular disease and is a leader in devices that stimulate cardiac
angiogenesis. The Company's market leading Holmium: YAG laser system and
disposable fiber-optic accessories are used to perform a FDA-cleared surgical
procedure known as transmyocardial revascularization (TMR) to treat patients
suffering from angina. The CardioGenesis TMR procedure, which is marketed in
the U.S. and around the world, has been shown to reduce angina and improve the
quality of life in patients with coronary artery disease. The Company's
minimally invasive percutaneous myocardial revascularization (PMR) procedure
is currently being marketed in Europe and other international markets.
For more information on the Company and its products, please visit the
CardioGenesis web site at http://www.cardiogenesis.com . For investor
relations information, visit the CardioGenesis pages in the "Client" section
of the Allen & Caron Inc web site at www.allencaron.com .

Any forward-looking statements in this news release related to the
Company's sales, profitability, the adoption of its technology and products
and FDA clearances are based on current expectations and beliefs and are
subject to numerous risks and uncertainties that could cause actual results to
differ materially. Other factors that could cause CardioGenesis' actual
results to differ materially are discussed in the "Risk Factors" section of
the Company's Annual Report on Form 10-K for the year ended December 31, 2002,
and the Company's other recent SEC filings. The Company disclaims any
obligation to update any forward-looking statements as a result of
developments occurring after the date of this press release.

For further information please contact: Investors, Rene Caron,
[e-mail], or media, Len Hall, both of Allen & Caron Inc,
[phone], for CardioGenesis; or Darrell Eckstein, President of
CardioGenesis, [phone], [e-mail]

SOURCE CardioGenesis Corporation

/CONTACT: investors, Rene Caron, [e-mail], or media, Len Hall,both
of Allen & Caron Inc, [phone], for CardioGenesis; or DarrellEckstein,
President of CardioGenesis, [phone], [e-mail]/

/Web site: http://www.allencaron.com /

/Web site: http://www.cardiogenesis.com /

Apr-02-2003 12:31 GMT
Symbols:
US;CGCP
Source PRN PR Newswire
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