Cambridge Heart Announces Co-Marketing Agreement with St. Jude Medical and a $12.5 Million Equity Investment

Business Wire, March 21, 2007

Cambridge Heart Raises Revenue Guidance

Conference Call to be held on March 22, 2007, at 8:30 AM ET

BEDFORD, Mass. -- Cambridge Heart, Inc. (OTCBB:CAMH), today announced a three-year exclusive sales and marketing agreement with St. Jude Medical, Inc. (NYSE:STJ), under which St. Jude Medical will be responsible for marketing Cambridge Heart's HearTwave II([R]) Microvolt T-Wave Alternans System and sensors to cardiologists and electrophysiologists in North America. Cambridge Heart's sales force will continue to market the HearTwave II to internal medicine and primary care practices. Alternans testing is designed to allow physicians to identify patients who are at increased risk of Sudden Cardiac Death (SCD).

"Our partnership with St. Jude Medical is a landmark event for Cambridge Heart, our employees, and our shareholders," stated Robert P. Khederian, Chairman and Interim CEO of Cambridge Heart, Inc. "Our entire organization should be commended for their hard work and achievements leading up to this co-marketing partnership."

"Industry reports estimate 10 million to 12 million individuals in the U.S. have underlying heart disease and are at significantly higher risk for Sudden Cardiac Death than the general population. Unfortunately, there are many high-risk patients who are not receiving the therapy they need, and our HearTwave II System allows physicians to identify, non-invasively, those who will most likely benefit from ICD therapy," commented Laurence Blumberg, M.D., Vice President of Business Development, a founder, and a Director of the Company. "Our alliance with St. Jude Medical, a leader in the $10 billion cardiac rhythm management market, is a critical step in expanding patient and physician awareness and the need for alternans testing."

St. Jude Medical has purchased $12.5 million of preferred stock in Cambridge Heart, which is convertible into common stock at $2.99 per share. St. Jude Medical will market and sell the system to cardiologists and electrophysiologists in North America, and Cambridge Heart will manage the installation of systems, the training of new customers, and the servicing of the equipment. Additional agreement details were not disclosed. Banc of America Securities LLC acted as financial advisor to Cambridge Heart.

"We are excited about the opportunity this partnership offers our physician customers and the patients they serve," stated Michael T. Rousseau, president of St. Jude Medical's U.S. Division. "The ability to provide physicians with a non-invasive, cost-effective test to help identify patients that will benefit from ICD therapy is very appealing."

Financial Guidance

As a result of the agreement, Cambridge Heart today is raising its 2007 revenue guidance to $14 million to $16 million from the prior guidance of $12 million to $14 million. Cambridge Heart's net loss for 2007 is expected to increase as compared to the Company's prior plan. Clinical support, manufacturing, general, and administration costs are expected to increase as Cambridge Heart builds its infrastructure to support St. Jude Medical's sales efforts. Additionally, there will be a material impact on the Cambridge Heart's balance sheet, as the Company will carry much higher inventory levels than it has historically.

Based upon the $12.5 million investment from St. Jude Medical, Cambridge Heart does not foresee a need to raise additional capital in the near-term. Therefore, Cambridge Heart intends to withdraw its universal shelf registration statement currently on file with the Securities and Exchange Commission.

Conference Call Information

Cambridge Heart will hold a conference call at 8:30 AM ET on Thursday, March 22, 2007, to discuss the sales and marketing agreement with St. Jude Medical. The call will be hosted by Mr. Robert Khederian, the Company's Chairman and Interim CEO, Dr. Ali Haghighi-Mood, Chief Operating and Chief Technology Officer, and Dr. Laurence Blumberg, Vice President of Business Development. Interested parties may participate by dialing (800) 299-8538 (outside the U.S. (617) 786-2902), passcode 70539889. Interested parties may listen to a recording of the conference call at any time during the 48 hours immediately following the call by dialing (888) 286-8010 (outside the U.S. (617) 801-6888) and enter the passcode 27449450. This playback will begin approximately two hours after the call ends. The conference call also will be available by webcast on the Company's web site at www.cambridgeheart.com.

About The Non-Invasive HearTwave([R]) II Microvolt T-Wave Alternans System

Cambridge Heart's HearTwave II Microvolt T-Wave Alternans System measures a specific and extremely subtle pattern of beat-to-beat fluctuations in a person's electrocardiogram. This pattern of fluctuations is called T-wave Alternans. These tiny variations in the electrocardiogram, measured at one millionth of a volt accuracy, are measured most commonly during a sub-maximal exercise stress test in the doctor's office or hospital outpatient setting. Extensive clinical research has shown patients with a positive or non-negative microvolt T-wave Alternans test are at increased risk for sudden cardiac death, while those who test negative are at reduced risk.