Company Press Release

CardioMEMS, Inc. Closes $22.6 Million Series D Financing and Appoints New CFO

Atlanta – November 1, 2006. CardioMEMS, Inc., the leading developer of wireless medical pressure sensors for the management of diseases such as Abdominal Aortic Aneurysm (AAA) and Heart Failure (HF), today announced the final closing of its Series D Preferred Stock financing for $22.6 million of equity funding led by Arcapita Ventures. Joining Arcapita in this investment are existing investors Boston Millennia Partners, Foundation Medical Partners, Medtronic, Inc., and Johnson & Johnson Development Corporation, along with a new investment from Easton Capital Partners. John Huntz, Executive Director of Arcapita Ventures, will join the CardioMEMS Board of Directors.

"CardioMEMS has successfully commercialized its platform wireless pressure sensing technology in the AAA market.  This investment will help us extend our breakthrough technology to other areas such as Heart Failure, Hypertension and Cardiac Surgery,” said Jay Yadav, MD, Chairman and CEO of CardioMEMS, Inc., of the financing.

"We are extremely pleased to be working with the group at Arcapita Ventures.  The synergies between Arcapita and CardioMEMS make this an excellent combination. CardioMEMS is proud to be among the elite group of companies that Arcapita has partnered with to build market-leading companies," said Dr. Yadav. 

Mr. Huntz of Arcapita added, “CardioMEMS represents a compelling investment opportunity for Arcapita. The company’s exceptional management team has built a proprietary technology platform that allows it to target multiple large markets. We believe CardioMEMS has the potential to substantially redefine and improve how physicians manage and treat chronic diseases that affect millions of patient every year. We are also especially pleased to support a world-class company that was incubated out of Georgia Tech’s Advanced Technology Development Center (ATDC).”

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The Board of Directors of CardioMEMS also announced that it has appointed Harold (Bud) W. Ingalls as Chief Financial Officer of the Company. He joins CardioMEMS from Serologicals Corporation where he was CFO and Vice President of Finance for the life sciences company prior to its acquisition by Millipore Corporation in July, 2006. In his new role at CardioMEMS, Bud will be a member of the executive team responsible for overall business planning and implementation and have responsibility for all accounting and financial activities including preparing the company to meet its current and future capital requirements. “We are very pleased that Bud has joined CardioMEMS in the role of CFO.  His experience at Serologicals and other public companies will be important as the company moves forward with its strategic plans and defines its capital structure to achieve its growth objectives,” said Jay Yadav.

About CardioMEMS, Inc.

CardioMEMS, Inc. is a medical device company focused on the application of MicroElectroMechanical Systems (MEMS) technology to create innovative devices for the diagnosis and management of chronic diseases. CardioMEMS was founded by Jay Yadav, MD, former Chair of the Cleveland Clinic Foundation Innovations group and Mark Allen, Ph.D., and professor of Electrical and Computer Engineering at the Georgia Institute of Technology. CardioMEMS markets the EndoSure™ Wireless AAA Sensor in the United States and expects to initiate US clinical studies using the same platform technology to help manage Heart Failure patients in the fourth quarter of 2006. HF affects approximately 5 million people in the U.S. and is the leading cause of hospitalizations with almost a million admissions last year.

CardioMEMS, Inc. is located in Atlanta, GA and is privately held.
More information about CardioMEMS, Inc. can be found at www.cardiomems.com

Contact: Bud Ingalls, CFO, 404-920-6700

About Arcapita Ventures

Arcapita Ventures, the venture capital arm of Arcapita Bank B.S.C.(c), partners with outstanding entrepreneurs to build market-leading companies. Arcapita Ventures focuses on growth-stage enterprises across the United States in the healthcare, information technology and industrial technology sectors. Arcapita Bank, a leading international investment firm with offices in Atlanta, London and Bahrain, has completed 58 transactions with a total value exceeding $13 billion in the venture capital, private equity, real estate and asset-based markets. Contact Arcapita Ventures at (404) 920-9000, via e-mail at vcapital@arcapita.com or on the web at www.arcapita.com

Statements made in this press release that look forward in time or that express beliefs, expectations or hopes regarding future occurrences or anticipated outcomes or benefits are forward-looking statements. A number of risks and uncertainties such as risks associated with product development and commercialization efforts, results of clinical trials, ultimate clinical outcome and benefit of the Company’s products to patients, market and physician acceptance of the products, intellectual property protection,and competitive offerings could cause actual events to adversely differ from the expectations indicated in these forward looking statements.

CardioMEMS, CardioMEMS logos, and EndoSure are trademarks of CardioMEMS, Inc.

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