REDWOOD CITY, Calif. - Cardica, Inc. (Nasdaq: CRDC) has announced that it has received a $500,000 payment from Cook Incorporated after the successful completion of the first milestone in the development the X-Port^TM Vascular Access Closure Device, an innovative automated device intended to be used to close holes in the femoral arteries after interventional vascular procedures.

"We believe that Cardica's design and micro-clip miniaturization expertise will lead to a significantly enhanced approach to vascular access closure," said Brian Bates, senior vice president, business development of Cook Incorporated. "We are pleased with the progress we are making on this next-generation closure device."

In December 2005, Cardica and Cook entered into an agreement to develop the X-Port device under which Cardica is responsible for design and pre-clinical development, which is being directed by a committee that includes representatives from both parties. Cook is responsible for clinical development and regulatory approval, and will have exclusive commercialization rights to market the X-Port device for medical procedures anywhere in the body. Cardica is eligible to receive additional product development milestone payments of up to $1.5 million upon successful completion, as well as, royalties on future worldwide sales.
"We are excited to be working with Cook and believe that this collaboration brings together Cook's innovative leadership and expertise in interventional cardiology with our commitment to provide reliable automated systems to enhance the care of patients with a wide range of cardiovascular and other conditions," said Bernard Hausen, M.D., Ph.D., president and chief executive officer of Cardica, Inc. "Cook's support of this program helps us leverage the versatility of our proprietary technology and has the potential to expand beyond this initial development effort."

The X-Port Advantage for Interventional Procedures
An estimated 8.5 million diagnostic and interventional catheterization procedures were performed worldwide in 2005, all of which required access site closure either by manual compression or alternative vascular closure devices and techniques. In approximately 45% of these cases, a closure device was used, and that number is steadily increasing. The worldwide market for femoral artery closure devices alone was estimated to be approximately $500 million in 2005, and is expected to increase to over $750 million by 2008.

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