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October 23, 2003

Endocardial Solutions Reports Third Quarter Earnings Results Record Revenue of $9.7 Million and Positive Cash Flow

MINNEAPOLIS / ST.PAUL -- Endocardial Solutions, Inc. (Nasdaq: ECSI) today reported record net revenue for the third quarter ended September 30, 2003 of $9.7 million compared with $5.5 million for the same period in 2002, an increase of 76%. The net loss for the third quarter was $879,000, or $.04 per share, compared with a net loss of $3.1 million, or $.19 per share, for the same period of 2002. Cash flow for the third quarter was positive for the first time in the Company’s history.

Jim Bullock, President and CEO, stated “We continue to be very pleased with the clinical and financial results from    ™ which we launched in the second quarter of this year.     is a proprietary navigation and localization system that enables three-dimensional non-fluoroscopic navigation and positioning of conventional mapping and ablation catheters. In early October, we released the second version of the     software containing numerous additional features and functions designed specifically for atrial fibrillation applications. We continue to see strong clinical adoption of this exciting new technology as a visualization and navigation platform for a variety of cardiac ablation techniques that are being developed, studied and used. We have upgraded more than 179   Systems globally, including 130 in the U.S., and with the 38 new “ -ready”   Systems sold in the second and third quarters, we now have approximately two-thirds of our global installed base of   Systems capable of doing   procedures.”

“Revenue increased by approximately 76% and 4% over the third quarter 2002 and the second quarter 2003, respectively, while total operating expenses increased by approximately 11% and decreased by 1%, respectively, over the same periods. The combined sale of   Array™ catheters and     surface electrode kits for the third quarter was approximately $5.4 million, an increase from $4.9 million in the second quarter of 2003. Increasing clinical applications for both     and the   Array catheter is the foundation of our focused strategy to drive clinical utilization of   Systems worldwide”, stated Mr. Bullock.

Mr. Bullock continued, “During the fourth quarter, we expect to release the initial version of   ‘digital image fusion’ technology (“  DIF™”), which will enable physicians to display, side-by-side, a three-dimensional digital CT image of a patient’s heart chamber on the   System. This first version of   DIF will be released on new   Systems sold during the fourth quarter and will be introduced on the Company’s new Intel® Xeon™ high performance workstation using a LINUX operating system. This new Intel® Xeon™ high performance workstation, with NVIDIA Quadro®4 graphics technology, will significantly improve the graphics processing and display capability of the   System, and result in improved margins on future   System sales. This initial version of   DIF will be compatible with gated CT images from GE Medical Systems LightSpeed® CT scanner running GE’s new CardEP™ electrophysiology advanced software application. We are continuing our clinical studies using the   System to assist electrophysiologists in stratifying patients with congestive heart failure (“CHF”) who are candidates to receive bi-ventricular pacing devices, identifying the optimal pacing, and measuring the hemodynamic efficiency of the pacing therapy. Early results continue to be very exciting, and we will continue our CHF research efforts during the remainder of 2003 and into 2004”, concluded Bullock.



Third Quarter 2003 Earnings Conference Call
October 24, 2003
9:30am (CDT)
US/Canada: 1-877-272-5391
International: 1-706-634-0654
Moderator: Jim Bullock
Instant Replay Through October 31, 2003
US/Canada: 1-800-642-1687
International: 1-706-645-9291
Conference ID: 11821


The discussion above is based on preliminary financial results, which are subject to further review and adjustment, and contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding gross margins, operating expenses and revenue expectations, that involve a number of risks and uncertainties. A number of factors should be considered in conjunction with these forward-looking statements. These factors are set forth in the cautionary statements included in Exhibit 99.1 to Endocardial Solutions’ Form 10-K for the year ended December 31, 2002, filed with the Securities and Exchange Commission. Endocardial Solutions cautions investors and others to review the statements set forth in that report and that other factors may prove to be important in affecting the business and results of operations of Endocardial Solutions.

Contacts:

Jim Bullock, President & CEO, Endocardial Solutions (651) 523-6928 jbullock@endocardial.com

J. Robert Paulson, CFO, Endocardial Solutions
(651) 523-6916 bpaulson@endocardial.com

Brenda Gutzke, Investor Relations, Endocardial Solutions (651) 523-6959 bgutzke@endocardial.com


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