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Heart disease is the leading cause of death in the United States. In 1996, 1.4 million patients underwent revascularizations to restore blood flow to diseased arteries. This market is projected to grow to 1.9 million in 1999.

Most patients suffering from coronary artery disease undergo either 1) a Coronary Artery Bypass Graft (CABG) procedure or 2) an interventional coronary procedure such as Percutaneous Transluminal Coronary Angioplasty (PTCA) (commonly known as balloon angioplasty), atherectomy or stenting. However, There are shortfalls associated with both CABG and PTCA. The CABG procedure requires surgeons to saw through the breastbone, crack the patient's chest open, stop the heart and put the patient on a heart-lung machine. Both the cracking of the chest and the use of the heart-lung machine have known complications and can cause patient trauma such as pain, bleeding, infection and stroke. These stopped-heart surgeries demand longer procedure times and patient recuperation periods, thus adding to the total healthcare bill.

InvestorAlthough many patients will still require traditional CABG surgery, we believe there will be a large number of patients who will benefit from minimally invasive bypass surgery. Interventional therapies such as angioplasty are generally less invasive than traditional CABG, but they are less effective and often require repeat procedures, resulting in significant long- term costs.

CTS believes that the high costs, trauma and complications endured by patients undergoing current therapies can be reduced by operating on a beating heart with a revolutionary new procedure ‹ minimally invasive direct coronary artery bypass (MIDCAB). The company estimates that this procedure provides an effective treatment alternative for up to 30 percent of patients needing revascularization. Of the more than 1.9 million patients expected to receive treatment in 1999 for coronary artery disease, the company believes more than 600,000 are candidates for minimally invasive cardiac surgery (MICS), which translates into a market opportunity in excess of $1 billion.

Because MIDCAB is believed to reduce the costs and patient trauma associated with traditional bypass surgery and offer improved results and lower long-term costs than PTCA, CTS anticipates that this procedure has the potential to become the new standard of care in specific patient populations. for a comprehensive education for CTS MIDCAB training.

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