Positive Insider Profile

Relative to many of its competitors, cardio-device maker Radiance Medical Systems has veritably breezed across the year’s bureau cratic hurtles. In January, the company launched a pair of clinical studies, BRITE II and BRITE-SVG, testing the efficacy of its RDX catheter in reducing in-stent restenosis following heart surgery. Late last year, the company announced that a BRITE I study had demon- strated the lowest restenosis rate ever reported in a published trial, while the RDX technology has also made headway into the treatment of peripheral (non-coronary) vessels, a sub-market estimated at $500 million.

As the company gears up to market the RDX system in Europe, Radiance continues to receive royalty payments from Guidant Corp. (GDT) for use of its “stepped balloon technlogy”, also expected to be used in Guidant’s next generation systems. Insiders, are apparently taking the good news to heart.

From May 7 through May 10 three insiders purchased 23,800 shares at $4.40 to $4.75 per share.

In April, insiders bought shares of Novoste Corp., an R&D outfit working on Beta-Cath, also used to deliver radiation to prevent restenosis following angioplasty. Investors who followed those insiders’ lead have thus far been rewarded a 35% return. While Radiance Medical supporters trumpet the superiority of the company’s catheters to the competition, this might ultimately be icing on the cake. More critical near-term will be general product acceptance (as reflected in physician usage and referrals) and reimbursement under managed healthcare. According to most in the field, the battle on both fronts is progressing nicely.

Insider Shares

Pres., CEO Jeffrey Thiel 3,500

Filer since ’96 made largest

open-market purchase.

VP, Finance & Admin., Corp. 2,100

Secretary, CFO Stephen Kroll

Filer since ’98 made largest open-

market purchase.

Timing: purchased in May ’99

Director Maurice Buchbinder 18,200

Filer since ’99 made first

open-market purchase.

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