Capstone Partners Advises Radius Medical Technologies in Transaction With Medtronic

February 1, 2004

Boston, MA - Capstone Partners LLC, a national middle-market investment banking advisory firm, announced today that it has successfully advised Radius Medical Technologies, Inc. on the divestiture of certain medical device assets to Medtronic, Inc. (NYSE: MDT). Capstone initiated the transaction, acted as financial advisor, and assisted in the negotiations for Radius Medical Technologies, Inc. The terms of this transaction were not disclosed.

Tom Collins, a managing director with Capstone and head of the firm’s health and medical group, commented on the transaction, “This establishes Radius as a preeminent research and development boutique within the medical device arena. This will most likely be the first of many medical device technologies that the company will bring to market and divest to the larger competitors that have the established distribution channels.”

“Medtronic will gain a competitive edge in one of its core markets,” Mr. Collins added.

“We are very excited about the outcome of this divestiture. It will hopefully be the first of many more to come,” remarked Maureen Finlayson, founder and chief executive officer of Radius Medical Technologies, Inc. “This transaction will provide us with the financial strength to more aggressively attack some of the newer product developments in process at Radius as well,” noted Ms. Finlayson.

Capstone’s Medical Technology Group was introduced to Radius Medical on the basis of their reputation for representing emerging medical technology businesses in the capital markets. Capstone’s medical device team maintains ongoing research in the sector as well as coverage of major acquirer and investor relationships. Capstone’s dedicate industry resources and relationships proved pivotal to consummating the transaction with Medtronic, sources close to the transaction believe.

Radius Medical Technologies, Inc. is a privately held corporation based in Acton, MA, specializing in the design, development and marketing of minimally invasive medical devices for treating cardiovascular disease. For more information, visit www.radiusmed.com.

Medtronic, Inc. (NYSE: MDT), headquartered in Minneapolis, is the world’s leading medical technology company, providing lifelong solutions for people with chronic disease. Its five operating segments manufacture and sell device-based medical therapies. The therapies are Cardiac Rhythm Management supplies medical devices designed to treat a range of heart conditions, such as bradycardia, tachyarrhythmia and heart failure; Spinal, Ear, Nose and Throat and Surgical Navigation Technologies offers products for the treatment of the conditions, such as spinal disorders and ear, nose and throat disorders; Neurological and Diabetes offers products for the treatment of the conditions, such as neurological disorders, diabetes and gastroenterology and urology disorders; Vascular offers minimally invasive products for the treatment of the conditions, such as coronary artery disease, peripheral vascular disease and abdominal/thoracic aortic aneurysm, and Cardiac Surgery offers products for the treatment coronary artery disease and heart valve disorders. Its Internet address is www.medtronic.com.