FDA INVESTIGATION OF GUIDANT CORP. PROCEEDING

Guidant has confirmed that it is "working with the FDA" regarding the agencyís investigation of Guidantís belated admission concerning its knowledge of a flaw which could cause its internal heart defibrillator to short-circuit. On May 24, Guidant disclosed for the first time that it had waited three years before disclosing that it was aware of an electrical problem that had caused some 26 defibrillators to malfunction. The revelation came when Guidant learned that The New York Times was about to publish a story on the defibrillator.

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