St. Jude Announces Agreement to Acquire Velocimed

St. Jude Medical has signed a definitive agreement to acquire the business of Velocimed, a privately owned company located in Maple Grove, Minn., that develops and manufactures specialty interventional cardiology devices.

Under the terms of the agreement, St. Jude will acquire Velocimed's business for a cash purchase price of $82.5 million, less an estimated $8.5 million of cash at Velocimed upon closing, plus additional contingent payments tied to revenues in excess of minimum future targets, and a milestone payment upon FDA approval of the Premere patent foramen ovale closure system. The first additional contingent payment contemplated under the agreement would be paid in March 2007.

St. Jude anticipates this acquisition will close in the second quarter of 2005. In connection with this transaction, the company will record a special charge for in-process R&D. This acquisition does not change St. Jude's existing guidance for 2005 earnings per share, exclusive of special charges.