PIONEERING LASER REVASCULARIZATION TREATING CARDIAC ARRHYTHMIA Many Edwards innovations result from applying technology  to treat unmet clinical needs – whether the condition threatens patients’ quality of life or their very survival. Angina is debilitating chest pain that results when heart muscles are deprived of oxygen. Because physical exertion often worsens the condition, angina  can severely restrict patients’ activity levels and overall quality of life. According to the American Heart Association, an estimated  6 . 3 million Americans currently suffer from angina, and  350 , 000 new cases are diagnosed each year. One relatively new treatment for debilitating angina is carbon- dioxide (CO$_{2}$) Laser Revascularization, also referred to as CO$_{2}$ transmyocardial revascularization (TMR), a surgical technology pioneered by PLC Medical Systems Inc. Using a specialized laser, cardiac surgeons can create tiny new blood channels on the heart’s surface to revascularize the heart and improve circulation. CO$_{2}$ Laser Revascularization is the only TMR technology backed by published five-year results in relieving chest pain in severely debilitated heart patients, and it has the potential to become the technology of choice for treating severe angina. In  2001 , Edwards entered into an exclusive, multi-year distribution agreement with PLC to offer the next- generation CO$_{2}$ Heart Laser  2 and related disposable components in the United States. Many patients with advanced cardiovascular disease also suffer from chronic cardiac arrhythmia, a malfunction in the heart’s electrical  system that results in an irregular heartbeat. Arrhythmia can lead to strokes or heart attacks, or contribute to heart valve regurgitation and congestive heart failure. The most common cardiac arrhythmia, atrial fibrillation, is thought to affect some  2 . 2 million people in the United States alone. Most cardiac arrhythmia patients have limited treatment options, including medication therapy or a highly complex surgical procedure. In search of a more effective approach, Edwards in  2001 entered into an exclusive, multi-year agreement with CardioFocus Inc. Together, we hope to develop a new surgical ablation system using diode laser energy to create lesions on the heart that would interrupt the abnormal electrical pathways and alleviate the arrhythmia. We expect to offer an initial surgical product employing this technology in late  2002 .