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Expanding Domestic Market Coverage for SPACEMAKER Products
Used for Hernia Repair

Cupertino, CA - (October 14, 1998) - General Surgical Innovations, Inc. (Nasdaq: GSII) today announced that it has entered into non-exclusive agreements with 7 leading surgical suppliers to distribute its SPACEMAKERÒ surgical balloon dissector kits used for hernia repair in the United States. The agreements provide for distribution in all or parts of 31 states. The Company currently has a direct sales force covering the remaining portion of the United States and, has agreements with United States Surgical Corporation (USS) and Ethicon Endo-Surgery (EES) to distribute these products worldwide.

"We believe that, over time, the ongoing expansion and strengthening of our distribution network will measurably and positively impact product sales," stated Gregory D. Casciaro, President and Chief Executive Officer of GSI. "We are very excited about signing agreements with these distributors, many of which also sell our cardiovascular products. The quality of distributors in our network will, we believe, advance our goal of making GSI's SPACEMAKERÒ solutions available to a broader group of surgeons and patients."

Casciaro added, "Our recent agreement with USS provides us with the necessary tools to offer surgeons a complete solution for hernia repair and incontinence procedures, contributing to GSI's ability to continue to expand its presence in these markets."

GSI's SPACEMAKERÒ 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 SPACEMAKERÒ dissectors, a surgeon makes 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.

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 used 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, 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.