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Cupertino, CA - (September 22, 1998) - General Surgical Innovations, Inc. (GSI) (Nasdaq NM: GSII) today announced that it has signed two non-exclusive, three-year agreements with United States Surgical Corporation (NYSE:USS). Under the terms of the first agreement, USS has obtained non-exclusive rights to market and distribute GSI’s SPACEMAKER^® surgical balloon dissectors worldwide for use in hernia repair and incontinence procedures. Under the terms of the second agreement, GSI has secured non-exclusive worldwide rights to market and distribute several products, including USS’s 5mm mesh fixation device, the ProTack™, which will be offered with GSI’s balloon dissectors in a complete hernia repair kit.

GSI President and Chief Executive Officer, Gregory Casciaro, stated, “These agreements strengthen our position in the marketplace by aligning GSI with another leading player in the industry. This relationship should help expand our presence in the hernia repair and incontinence markets and accelerate the acceptance of GSI's proprietary technology. Our non-exclusive distribution strategy advances our goal of making GSI’s SPACEMAKER^® solutions available to a broader group of surgeons performing laparoscopic hernia repair and incontinence procedures, and we believe that US Surgical has the marketing and distribution muscle to bring us closer to achieving that goal.”

“We have agreed to sell the USS ProTack™, mesh and secondary trocars that, when combined with GSI’s SPACEMAKER^® dissectors, allow GSI to offer surgeons a complete hernia repair kit. We are now able to further expand our distribution network and drive the sales effort required to continue the growth of this market worldwide. We believe this total solution approach will have a significant upside benefit to GSI sales and will positively affect our ability to meet the needs of our customers,” concluded Casciaro.

Leon C. Hirsch, Chairman of USS, commented, “GSI is the innovative leader in balloon dissection devices and has an excellent product line. These agreements will allow both companies to offer customers the most extensive range of products available today for hernia repair and incontinence procedures expanding the opportunities for minimally invasive approaches.”

GSI's SPACEMAKER^® tissue dissection systems, based on the company’s patented balloon technology, 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 system is then removed and the dissected space can be insufflated with gas to create a surgical operating space.

United States Surgical Corporation is a diversified medical products company specializing in minimally invasive technologies that improve patient care and lower health care costs.

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, distribution relationships 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.