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Stereotaxis Reports Fourth Quarter and Full Year 2007 Financial Results
Date:3/3/2008

lization of the magnetic irrigated catheter, we anticipate strong demand for our system as well as an increase in utilization. In fact, at the eight European centers and one Canadian center that have participated in the external evaluation of the magnetic irrigated catheter, utilization increased to an average of 4.5 cases per week across these sites. The external evaluation by our catheter partner has involved roughly 250 cases and the results are currently being reviewed. We understand that a 94% acute success rate was achieved in these cases, with a high satisfaction rating by clinicians, and that there was only one minor and transient adverse event. We are proud of this exemplary safety record. In addition, the average economics per case from disposable revenue at these sites to Stereotaxis was approximately $1,000, which is the first time we have achieved this economic threshold. Overall, we are extremely pleased with the results.

"At the same time, the external evaluation phase of the launch has identified a relatively small number of catheters that exhibited signs of char or coagulum formation. Although it is our observation that changes in temperature setting and saline flow have largely resolved this issue in the clinical setting, our catheter partner has advised us that these characteristics are inconsistent with the product specifications. Consequently, they have informed us that they will be temporarily halting procedures done with magnetic irrigated catheters and will be delaying full commercialization until this issue, which is an extremely high priority for them, is resolved. Our catheter partner has attributed this issue to inconsistencies with specifications and this information, together with the observations of our own engineers, leads us to believe the root cause lies in the area of manufacturing conformance to specifications and should be addressable accordingly," Mr. Hogg stated.

Regarding the outlook for 2008, Mr. Hogg commented,
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SOURCE Stereotaxis, Inc.
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