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Cupertino, CA - (November 12, 1998) - General Surgical Innovations, Inc. (GSI) (Nasdaq: GSII) today announced a major development in its interference proceeding against Origin Medsystems Inc., a division of Guidant Corporation. GSI was informed by the arbitrator deciding priority issues in its interference proceeding against Origin, that Dr. Maciej Kieturakis, who assigned his rights in certain patents to GSI, is the first and true inventor of the contested patentable matter. The arbitrator ruled that Dr. Kieturakis conceived this technology in June 1991 and reduced it to practice in a hernia repair procedure shortly thereafter. The arbitrator found that Origin did not possess the contested technology until after it was actually reduced to practice by Dr. Kieturakis.

This decision, together with a recent Patent and Trademark Office ruling that the contested technology is indeed patentable, means that title to all resulting patents will belong to GSI. Origin has asked for reconsideration by the Patent Office of its patentability ruling. Patents resulting from the contested technology cover certain aspects of surgical balloon dissection technology, and are additive to the existing protection provided by other patents already issued to GSI.

Gregory Casciaro, GSI President and CEO stated, "I believe that the patent or patents resulting from the contested technology will cover the use of Origin's VasoView, ExtraView, and PDB products. These patents will add another significant measure of protection to that already afforded by existing GSI patents".

The interference ruling is the latest development in a series of patent confrontations between GSI and Origin. In May 1996, Origin sued GSI for infringement under its patent number 5,520,609, on the day Origin's patent issued. In April 1998, the United States District Court found that Origin had obtained this patent through inequitable conduct by misrepresenting material facts to the Patent Office in order to gain its allowance. The Court therefore found this patent to be unenforceable and has ruled GSI is entitled to recover attorney fees in the amount of $990,000.

Recently, in a separate action for patent infringement brought by GSI, the United States District Court for the Northern District of California granted GSI's summary judgment motion that the use of any of Origin's current balloon dissection products infringes GSI's patent number 5,514,153. The trial on validity and damages issues in this case is scheduled to be held in January 1999.

GSI's SPACEMAKER® tissue dissection systems are based on the company's patented balloon dissection technology and incorporate ancillary instruments to facilitate minimally invasive surgical procedures. Minimally invasive, or "keyhole," surgeries were initially limited to procedures carried out within the abdominal cavity which provided a working space for the surgeon. Balloon dissection methods are used to create working spaces where no naturally occurring space exists and have enabled surgeons to extend their use of minimally invasive techniques to a broader range of procedures. With the use of GSI technology, patients may receive such benefits as reduced pain and faster recovery times.

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, obstetric/gynecological, 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 patent rulings and market development, 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 rulings in patent litigation, 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.