ev3, a global endovascular device company, announced that it has signed a definitive agreement to acquire Chestnut Medical Technologies, Inc., a privately held, California-based company focused on developing minimally invasive therapies for interventional neuroradiology. The transaction will broaden ev3's neurovascular product portfolio by adding the Pipeline Embolization Device for the treatment of cerebral aneurysms and the Alligator Retrieval Device for foreign body retrieval to ev3's existing embolic product and access technologies.

Under the terms of the agreement, ev3 will acquire 100% of the equity interests of Chestnut for total upfront consideration of $75 million paid upon closing, 30 to 40% of which is payable in cash, with the remaining portion payable in ev3 common stock. An additional milestone-based contingent payment of up to $75 million is payable in a combination of cash and ev3 common stock upon the receipt of U.S.

FDA premarket approval of the Pipeline device. ev3 will finance the upfront cash payment due upon closing through cash on hand. Any contingent milestone payment is not expected to be paid until 2011. The transaction is subject to customary closing conditions and is expected to close within approximately 45 days.
Chestnut's Pipeline technology is a new class of embolization device that is designed to divert blood flow away from the aneurysm in order to provide a complete and durable aneurysm embolization while maintaining patency of the parent vessel. It has already received CE Mark approval in Europe. Chestnut is currently conducting two clinical studies under U.S. FDA investigational device exemptions (IDE) to gain approval for the Pipeline Embolization Device in the United States.

A cerebral aneurysm is a weak spot in the wall of a blood vessel within the brain, characterized by an abnormal "ballooning" or widening of the vessel. It is estimated that up to one in 15 people in the United States will develop a cerebral aneurysm during their lifetime. Left untreated, cerebral aneurysms can rupture and cause stroke or death. ev3 estimates that approximately one fourth of worldwide aneurysm treatment procedures could be eligible for treatment with flow diversion devices over the next five years, translating into a market potential of approximately $350 million in 2013.

An investor presentation is available at http://ir.ev3.net.

About ev3 Inc.

Since its founding in 2000, ev3 has been dedicated to developing innovative, breakthrough and clinically proven technologies and solutions for the treatment of peripheral vascular and neurovascular diseases. ev3's products are used by endovascular specialists to treat a wide range of peripheral vascular and neurovascular diseases and disorders. The company offers a comprehensive portfolio of treatment options, including the primary interventional technologies used today -- peripheral angioplasty balloons, stents, plaque excision systems, embolic protection devices, liquid embolics, embolization coils, thrombectomy catheters and occlusion balloons. More information about the company and its products can be found at www.ev3.net.

ev3, the ev3 logo, Axium, Onyx and Solitaire are trademarks of ev3 Inc., registered in the U.S. and other countries. All other trademarks and trade names referred to in this press release are the property of their respective owners.

About Chestnut Medical Technologies, Inc.

Chestnut Medical Technologies, Inc. was founded to pioneer new minimally invasive therapies for interventional neuroradiology. Chestnut's mission is to develop technologies that are easier to use while improving outcomes and reducing complications in the treatment of neurovascular disease. Chestnut's first products are the Pipeline Embolization Device (PED) for treating cerebral aneurysms and the Alligator Retrieval Device (ARD) for foreign body retrieval. More information about Chestnut and its products can be found at www.chestnutmedical.com.

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