Boston Scientific to Explore Sale of Cardiac Surgery and Vascular Surgery Businesses

Transaction Would Advance Company's Plan to Divest Non-Strategic Assets and

Strengthen Operating and Financial Performance

    NATICK, Mass., Aug. 16 /PRNewswire-FirstCall/ -- Boston Scientific
 Corporation ( BSX) today announced its intention to explore the sale
 of its Cardiac Surgery and Vascular Surgery businesses as part of the
 Company's plan to review its portfolio of assets and divest those
 considered non- strategic, and to strengthen its operating and financial
 performance.
     "As part of an ongoing review of our assets, we have initiated a
 process to explore the sale of our Cardiac Surgery and Vascular Surgery
 businesses," said Paul LaViolette, Chief Operating Officer of Boston
 Scientific. "If finalized, this sale will support our efforts to focus
 resources on our core businesses and improve our operating and financial
 performance. These are strong businesses, and we believe the combined
 portfolio has great potential for success with the focused attention and
 resources of external ownership. We are in discussions with several
 potential buyers, and we expect the process to take a number of months."
     "This is another step in the progress we are making on our plan to
 divest non-strategic assets, monetize our investment portfolio and bring
 our expenses and head count in line with our revenues," added LaViolette.
 "We have now identified three non-strategic businesses to divest, and we
 are in discussions with potential buyers for all three. In recent months we
 have retained our Endosurgery group, entered into an agreement to assume
 sole management and control of our pain management business from Advanced
 Bionics and sell the Advanced Bionics auditory business, monetized parts of
 our portfolio, and begun developing an expense and head count reduction
 plan, which we plan to announce next quarter. In addition, we continue to
 focus on the recovery of the drug-eluting stent and cardiac rhythm
 management markets. Together, these measures should combine to help us
 achieve our overall goals of restoring profitable growth, increasing
 shareholder value, and continuing to build and strengthen Boston
 Scientific."
     Boston Scientific acquired the Cardiac Surgery business in April 2006
 as part of the Guidant transaction. Headquartered in San Jose with a
 manufacturing facility in Dorado, Puerto Rico, the Cardiac Surgery business
 is a leading developer of medical technologies designed to provide
 less-invasive therapies in cardiac surgery, including beating heart bypass
 surgery systems, endoscopic vessel harvesting for coronary bypass surgery,
 and microwave surgical ablation. The business employs approximately 450
 people and had 2006 revenues of $189 million.
     Boston Scientific established its Vascular Surgery business with the
 acquisition of Meadox Medicals in 1995. The Vascular Surgery business
 develops market-leading synthetic grafts and patches for repair of
 abdominal aortic aneurysms and peripheral vascular anatomy. The business
 had 2006 revenues of $86 million and has approximately 250 employees,
 primarily located at its manufacturing site in Wayne, New Jersey.
     This announcement shall not constitute an offer to sell or the
 solicitation of an offer to buy nor shall there be a sale of any securities
 in any State in which such offer, solicitation or sale would be unlawful
 prior to registration or qualification under applicable securities laws.
     Boston Scientific is a worldwide developer, manufacturer and marketer
 of medical devices whose products are used in a broad range of
 interventional medical specialties. For more information, please visit:
 http://www.bostonscientific.com.
     This press release contains forward-looking statements. Boston
 Scientific wishes to caution the reader of this press release that actual
 results may differ from those discussed in the forward-looking statements
 and may be adversely affected by, among other things, risks associated with
 product development and commercialization, clinical trials, intellectual
 property, regulatory approvals, competitive offerings, disposition of
 non-strategic assets, Boston Scientific's overall business strategy, and
 other factors described in Boston Scientific's filings with the Securities
 and Exchange Commission.
      CONTACT: Paul Donovan
               508-650-8541 (office)
               508-667-5165 (mobile)
               Media Relations
               Boston Scientific Corporation
 
               Dan Brennan
               508-650-8538 (office)
               617-459-2703 (mobile)
               Investor Relations
               Boston Scientific Corporation
 
 

SOURCE Boston Scientific Corporation