St. Jude Medical, Inc. and RadiMedical AB announced the completion of St. Jude Medical's acquisition of Radi Medical Systems AB for $250 million in cash.

Radi Medical Systems is the world leader in two segments of the market for cardiovascular medical devices in which St. Jude Medical does not currently participate. For 2008, Radi Medical Systems is expected to generate approximately $80 million in sales, a 19% increase over 2007.

Radi Medical Systems' pressure measurement guidewire, PressureWire® Certus, comprises approximately a 70% share of the global market for physiological assessment of coronary lesions. The product is supported by a large and growing body of clinical evidence, including the FAME ("Fractional Flow Reserve vs. Angiography for Multivessel Evaluation") study. The results of the FAME study were presented at the Transcatheter Cardiovascular Therapeutics conference in October 2008, and can be viewed at www.famestudy.com. The market for physiological assessment of coronary lesions totaled over $60 million in 2008 and is projected to continue growing at a strong double-digit rate.

Radi Medical Systems' FemoStop® and RadiStop® product lines comprise approximately a 60% share of the global market for manual compression-assist products for vascular closure. This market totaled approximately $45 million in 2008 and is projected to continue to grow at least at a mid single-digit rate. The FemoStop and RadiStop product lines, together with St. Jude Medical's world-leading Angio-Seal™ line of active vascular closure products, will be part of an expanded program by St. Jude Medical to fully develop the potential of a global vascular closure device market that is only about 27% penetrated.

Thomas Engstrom, chief executive officer of Radi Medical Systems said, "We are pleased to join with the industry leader in active vascular closure and a partner who shares our vision of developing innovative cardiovascular technologies that improve patient care. This transaction brings together complementary product lines and, through St. Jude Medical's sales and distribution infrastructure, extends our reach to even more physician customers for the benefit of the patients they help every day."

With this transaction, Radi Medical Systems will become part of the St. Jude Medical Cardiovascular Division. The transaction is expected to be neutral to St. Jude Medical's consolidated earnings per share in 2009 and is expected to be positive to consolidated earnings per share beginning in 2010. St. Jude Medical funded the acquisition with cash on hand outside the United States as well as with the proceeds from a new three-year term loan established recently with a syndicate of banks.

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