SOURCE: Cardima, Inc.

May 08, 2008 17:15 ET

Cardima Announces Completion of $5 Million Private Placement

FREMONT, CA--(Marketwire - May 8, 2008) - Cardima, Inc. (OTCBB: CADM), announces today that it has completed a private placement of 8,474,992 shares of common stock at US$0.60 per share to accredited investors. The total gross proceeds were $5,085,000. In addition, the Company issued to the investors warrants to purchase 1,271,247 shares of common stock at an exercise price of US$0.65 per share.

Tony Shum, Chairman of Cardima, said, "This transaction strengthens our balance sheet and allows the excellent team of professionals at Cardima to continue to advance our commercialization and regulatory strategies worldwide. This also demonstrates continued confidence in our products and strategy by the accredited investors who have participated in previous rounds of financing in 2007."

About Cardima

Cardima, Inc. has developed the PATHFINDER® and REVELATION® Series of diagnostic catheters, the INTELLITEMP® Energy Management Device, and the Surgical Ablation System (SAS). All of these devices are CE marked and received U.S. FDA 510(k) clearance. The REVELATION® Series of ablation catheters with the INTELLITEMP® EP Energy Management Device was developed and marketed for the treatment of atrial fibrillation (AF) after receiving CE mark approval in Europe; it is not currently available in the U.S.

For more information, please visit the Company's website at www.cardima.com.

Forward-Looking Statements

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such forward-looking statements. Potential risks and uncertainties include: the uncertainties associated with the prospects for FDA approval of any new devices; the prospect for any future clinical trials or regulatory activities; the risk that the Company will not be able to raise additional capital in the immediate term as needed to continue operations and the risk that we will be unable to secure a strategic transaction involving the Surgical Ablation System. Additional risks and uncertainties are set forth in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2007, and in the Company's subsequent SEC filings. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.

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