SAN DIEGO, Dec. 14, 2001 (PRIMEZONE) -- CardioDynamics International Corporation (CDIC) (Nasdaq:CDIC), the innovator and market leader of Impedance Cardiography (ICG) technology and manufacturer of BioZ(r) noninvasive digital cardiac function monitoring systems, today announced that the registration of 1.2 million shares of the Company's stock was withdrawn as agreed by the Allen E. Paulson Living Trust.
Over the past several months, CardioDynamics has assisted both the Allen E. Paulson Trust and the Scripps Foundation in placement of 4.2 million shares of the Company's stock, primarily to institutional investors. The Company now has approximately 31% institutional ownership, including Domain Associates, Societe Generale Veritas, CDP Global Asset Management, Northpointe Capital, and Vanguard Group amongst its leading institutional owners.
With the decrease in ownership by the Paulson Trust, the Company has accepted the resignation of J. Michael Paulson as a member of the board of directors, effective December 2001. Mr. Paulson has served on the Board since August 2000 following the death of his father, the late Allen E. Paulson. The Board's nominating committee is currently evaluating several candidates and the Company plans to announce a new board member following its next board meeting.
"Earlier in the history of the Company, it was important for our family to have direct involvement in CardioDynamics," stated J. Michael Paulson. "With the Trust's reduced ownership, I feel it is best for the board to include individuals from the medical device industry with time to devote to CardioDynamics. I currently need to dedicate all of my time to the business and the needs of the Trust and Estate. As stated before, we continue to have confidence in the Company's growth prospects and presently intend to retain a substantial interest in the Company."
"We are pleased with the increase in institutional ownership and that the Estate plans to maintain a significant investment in CardioDynamics. The Paulson family has played an important part in the history of CardioDynamics," stated Michael K. Perry, Chief Executive Officer of CardioDynamics. "We thank Michael for his service and support and wish him the very best."
About CardioDynamics:
CardioDynamics, the ICG Company, is passionately dedicated to improving healthcare as the innovator and leader of noninvasive ICG technology. The Company's primary products, the BioZ(r) Systems, utilize proprietary technology to assist medical professionals in assessing, diagnosing, and customizing drug therapy for patients with high blood pressure, heart failure, and other cardiovascular diseases. This new 'informed' approach to treatment has been clinically proven to improve patient outcomes and reduce costs in both the physician's office and the hospital. BioZ ICG is covered by both Medicare and private insurance, currently available in over 70 countries, and is being used by leading medical centers such as Yale New Haven Hospital, the Mayo Clinic, Cleveland Clinic, Baylor College of Medicine, and California Heart Institute, a premiere Tenet hospital. Strategic partners include GE Medical Information Technologies, Spacelabs Medical Systems, and Vasomedical. The worldwide market potential for BioZ products is estimated to be $5 billion, together with an additional $800 million in recurring annual revenue for disposables. CardioDynamics, with headquarters in San Diego, California, has reported 15 quarters of increasing sales and its first profitable quarter. For additional information, please refer to the company's Web site at www.cdic.com.
Forward-Looking (Safe Harbor) Statement:
Note: Except for the historical and factual information contained herein, this press release contains forward-looking statements, the accuracy of which are necessarily subject to uncertainties and risks, which include sole dependence on the BioZ product line, and various uncertainties characteristic of companies just emerging from the development stage; as well as other risks detailed in the company's filings with the SEC, including its 2000 Form 10-KSB. The company does not undertake to update the disclosures contained in this press release.