January 27, 1998

GENERAL SURGICAL INNOVATIONS RECEIVES 510K APPROVAL FOR EXPANDED USE OF SPACEMAKER TISSUE DISSECTION PRODUCTS

Cupertino, CA -- January 27, 1998 --General Surgical Innovations, Inc. (GSI) (Nasdaq: GSII) announced today that it has received 510(k) clearance from the U.S. Food and Drug Administration (FDA) that expands the indications for use of the company's proprietary SPACEMAKER® surgical balloon dissection products in minimally invasive surgical procedures.

Specifically, the SPACEMAKER® surgical balloon dissection products are now cleared for use in surgeries that involve access to the spine and long-bone plating, as well as thoracoscopic procedures involving exposure and dissection of nerves, blood vessels and other tissues of the chest wall. For those procedures involving cardiovascular applications, the product will be marketed through GSI's Cardiovascular Group; all other applications will be marketed through the company's Technology Alliance Group.

Gregory Casciaro, President and Chief Operating Officer of GSI, stated, "This clearance to market our SPACEMAKER® surgical balloon dissection products in these new indications enables us to move forward in all of our key target markets. The company believes that physicians, as well as its distributors, are looking for ways to convert these traumatic open procedures to less invasive, less traumatic methods. The SPACEMAKER® products help address the needs of surgeons in performing these minimally invasive procedures. This approval is another important step in the conversion of traditional major open procedures into less invasive surgeries that often involve shorter patient recovery periods and are more cost effective."

GSI's patented SPACEMAKER® tissue dissection systems, based on the company's patented balloon technology, more rapidly and gently create surgical working spaces by separating natural tissue planes without resorting to blunt dissection used in conventional open surgery or minimally invasive surgery conducted outside of a natural body cavity. In procedures using SPACEMAKER® dissectors, a surgeon creates a small incision through which the balloon is inserted and placed between naturally occurring tissue layers such as muscle, fat and skin. Subsequently, the balloon is filled to a specific volume with air or saline, causing the desired dissection of the tissue planes. The balloon is then removed and the dissected space can be insufflated to open the surgical operating space created by the use of the SPACEMAKER® system.

Headquartered in Cupertino, California, General Surgical Innovations, Inc. develops, manufactures and sells tissue dissection systems based on the company's patented balloon technology for minimally invasive surgical procedures. The company's products are specifically designed for endoscopic and laparoscopic techniques for use in general, vascular, thoracoscopic, orthopedic, cosmetic and reconstructive surgeries to create an operating space at the surgical site, which the company believes lessens tissue damage and improves patient recovery time. The company has developed a broad range of balloon shapes and sizes to be used for various surgical techniques, procedures and market segments. GSI distributes its products worldwide through a network of distribution partners and a direct sales force.

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