SOURCE: Cardima, Inc.

December 12, 2007 08:45 ET

Cardima Announces Completion of $9 Million Private Placement

FREMONT, CA--(Marketwire - December 12, 2007) - Cardima, Inc. (OTCBB: CADM), announces today that it has sold 18,000,000 shares of common stock at US$0.50 per share in a private placement transaction to accredited investors. In addition, the Company issued to the investors 2,700,000 warrants to purchase 2,700,000 shares of common stock at an exercise price of US$0.55 per share.

Tony Shum, Chairman of Cardima, said, "This transaction is a major milestone for the Company and shows the continued faith of investors in the Company and our products. With our strengthened balance sheet, we look forward to accelerating our plans to commercialize our suite of ablation and diagnostic products."

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

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, 2006, the Company's Quarterly Report on Form 10-QSB for the third quarter ended September 30, 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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