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Cupertino, CA - (November 4, 1998) - General Surgical Innovations, Inc. (GSI) (Nasdaq: GSII) today announced a major development in its ongoing patent infringement litigation with Origin Medsystems Inc., a division of Guidant Corporation. On October 29, 1998, the United States District Court for the Northern District of California granted GSI's motion for summary judgment that Origin infringes the claims of GSI's patent no. 5,514,153, entitled “Method of Dissecting Tissue Layers,” with the use of its PDB® 1000, PDB® 2, Extra View™ Balloon-Round and Extra View™ Balloon-Oval products for laparoscopic surgery and VasoView™ products for cardiovascular surgery.

Gregory Casciaro, President and Chief Executive Officer of GSI, stated that he was pleased that the Court's ruling reduced the number of issues remaining for trial on January 11, 1999, at which time only the issue of patent validity remains to be decided. “We believe that Origin has made improper use of our patented technology. Additionally, an injunction will be sought which would take Origin's products off the market, restoring what we believe to be justice and equity to the marketplace,” Mr. Casciaro commented.

Earlier this year, GSI successfully defended, also by summary judgment, a patent infringement action brought by Origin when the United States District Court in San Jose, California, ruled that Origin's patent was invalid as a result of inequitable conduct on the patent office. In a follow up ruling handed down by the court, GSI is entitled to recover its legal expenses incurred in defending that patent infringement action. Origin has appealed both rulings.

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 companyís 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 companyís 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 Innovationsí control, such as strategic planning decisions by management and reallocation of internal resources, or on factors outside of General Surgical Innovationsí 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.