Micrus Endovascular Acquires Catheter Technology Company VasCon LLC

San Jose, CA — Micrus Endovascular Corporation announced that it has acquired certain assets and business of privately held VasCon LLC, a developer and manufacturer of vascular access and delivery devices. Micrus Design Technology, Inc., the subsidiary of Micrus formed to acquire the assets, will develop and manufacture neurovascular catheter products for Micrus, including Micrus' steerable catheter the ENZO™. VasCon's existing cardiovascular products will continue to be sold through non-Micrus distribution channels.

Under terms of the agreement, Micrus, through its subsidiary Micrus Design Technology, acquired assets of VasCon for an up-front payment of approximately $5 million, paid in cash and Micrus stock, and performance based earn-out payments over three years. Certain VasCon personnel have become employees of Micrus Design Technology. Mitch Auran, formerly VasCon's president and CFO, has been appointed vice president of the newly formed Micrus subsidiary. Mr. Auran brings Micrus more than 26 years of senior management experience in finance and medical device start-up companies.

"Adding VasCon's expertise in developing clinically advanced access and catheter systems expands our core competencies, marking a key step in our strategy to become a full-line endovascular company," said John Kilcoyne, president and CEO. "Equally important, we gain outstanding manufacturing capabilities that are expected to lead to significant cost reductions for a wide range of our products.

"The VasCon team has already demonstrated unmatched technical capability through its work with the Micrus research and development team on developing the Micrus ENZO, our proprietary steerable catheter expected to be launch before the end of our fiscal 2007 year. We are excited at the opportunity to leverage this competency in setting new clinical standards in the access of intracranial anatomy for the treatment of hemorrhagic and ischemic stroke," he added.

"I see this as an excellent opportunity to join forces with a company that is quickly emerging as a leader in the rapidly growing neurointerventional market," said Mr. Auran. "We are combining our significant catheter expertise with Micrus' proprietary microcoil technology, resources and established worldwide distributor base to achieve a common commitment to commercialize innovative products designed to meet the needs of physicians and patients alike."

SOURCE: Micrus Endovascular Corporation