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Cupertino, CA - (August 4, 1998) - General Surgical Innovations, Inc. (GSI) (Nasdaq NM: GSII) announced today that the company is entitled to recover legal expenses incurred in defending a patent infringement action brought against GSI by Origin, a division of Guidant Corporation, according to a ruling handed down by The United States District Court in San Jose, California.

President and Chief Executive Officer Gregory Casciaro stated, “We have incurred considerable legal fees to defend a patent infringement action that never should have been brought against us. Earlier, this same court ruled that Origin had obtained the patent by making misrepresentations to the U.S. Patent Office. As a result of these misrepresentations, the court has granted us recovery of all reasonable legal fees. We are very pleased with this development and believe that justice was served.”

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, cardiovascular, orthopedic, cosmetic and reconstructive surgeries to create an operating space at the surgical site, lessen tissue damage and improve 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. For additional information, please visit the company’s World Wide Web site at www.gsii.com.

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties. Future market development and demand for the company’s products, among other matters discussed in this release, may differ significantly from the discussion of such matters in the forward-looking statements. Such differences may be based upon factors within General Surgical Innovations’ control, such as strategic planning decisions by management and reallocation of internal resources, or on factors outside of General Surgical Innovations’ control, such as scientific advances by third parties, introduction of competitive products and delays by regulatory authorities, as well as those factors set forth under the heading ‘Factors Affecting Future Results’ in General Surgical Innovations’ Annual Report on Form 10-K for the year ended June 30, 1997, Form 10-Q for the quarters ended September 30, 1997, December 31, 1997, March 31, 1998 and other company filings with the Securities and Exchange Commission.

For more information on General Surgical Innovations, via fax at no cost,
dial 800-PRO-INFO (908-544-2850 outside the U.S.) ticker symbol: GSII.