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Cupertino, CA - (November 6, 1998) - General Surgical Innovations, Inc. (GSI) (Nasdaq: GSII) today announced that the United States District Court for the Northern District of California awarded GSI recovery of approximately $1,000,000 in attorneys' fees related to its litigation with Origin Medsystems Inc., a division of Guidant Corporation.

Origin Medsystems accused GSI of infringement under its patent number 5,520,609, entitled “Apparatus and Method for Peritoneal Retraction,” on May 28, 1996, the day Origin's patent issued. In April 1998, the United States District Court for the Northern District of California ruled 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 also ruled that GSI is entitled to recover its attorney fees. The Court has now entered judgment in favor of GSI in the amount of $990,000, plus pre-and post-judgment interest on the award of those fees.

Gregory Casciaro, President and Chief Executive Officer of GSI, stated, “We are pleased to recover these legal fees which GSI incurred defending a patent infringement action that never should have been brought against us. With this issue behind us, we can continue to focus on bringing the benefits of GSIís proprietary balloon dissection technology to a broad group of patients and physicians,” continued Casciaro.

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 companyís patented balloon technology for minimally invasive surgical procedures. The companyís 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 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 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.