SOURCE: Cardima, Inc.

November 17, 2008 08:45 ET

Cardima Executes $6 Million Loan Agreement

FREMONT, CA--(Marketwire - November 17, 2008) - Cardima, Inc. (OTCBB: CADM), a medical device company focused on the treatment of Atrial Fibrillation ("AF") and manufacturer of the Cardima Surgical Ablation System, the EP Ablation System, and the PATHFINDER® family of diagnostic microcatheters, announces today that on November 11, 2008, the Company executed a Loan Term Sheet and Loan Commitment letter (the "Financing Documents") with an accredited investor and shareholder of the Company pursuant to which the Company will issue a secured promissory note (the "Note") in the principal amount of $6 million. The Note will bear interest at a rate of 10% per year and matures on November 10, 2009. The Note will have and be a general charge on all of the assets of the Company. The Company intends to use the proceeds for general corporate purposes, including working capital and equipment purchases.

Tony Shum, Chairman of Cardima, said, "The past year has brought tremendous positive changes to the Company and this transaction marks another significant step towards building the New Cardima. We thank our shareholders for their continued support, which allows us to continue the systematic commercialization of our great range of products. This loan facility provides important resources as we begin to rapidly expand the number and scope of our distributor relationships around the world and plan for exciting and dynamic growth in 2009."

About Cardima

Cardima, Inc. has developed the PATHFINDER®, TRACER™ and REVELATION® Series of diagnostic catheters, the VUEPORT® and NAVIPORT® Series of guiding 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.

PATHFINDER®, TRACER™, VUEPORT®, NAVIPORT®, REVELATION® and INTELLITEMP® are registered trademarks of Cardima, Inc.

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

Forward-Looking Statements

This press release may contain forward-looking statements. These statements are subject to risks and uncertainties. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements as contained in our reports to the Securities and Exchange Commission, including our Forms 10-K and 10-Q. The Company assumes no obligation to update the forward-looking information.

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