Cardiovascular Systems Announces Plans for Second Manufacturing Facility

New Facility Expands CSI`s Capacity to Produce Peripheral Arterial Disease
Systems;

Second Site Reduces Business Interruption Risk
ST. PAUL, Minn.--(Business Wire)--
Cardiovascular Systems, Inc. (CSI) (Nasdaq: CSII), a medical device company
developing and commercializing innovative interventional treatment systems for
vascular disease, has signed a 10-year lease agreement for a new
46,000-square-foot manufacturing facility in Pearland, Texas. The facility is
being built for CSI and will support the production of its Diamondback 360® PAD
System, a minimally invasive catheter for treating peripheral arterial disease
(PAD), and other products.

"As demand builds for our Diamondback 360°, we need additional manufacturing
capacity to accommodate our growth, and multiple facilities to minimize business
interruption risk," said Robert J. Thatcher, CSI executive vice president. "We
received numerous proposals for facility locations. The State of Texas and City
of Pearland put together the most attractive economic package, allowing us to
expand quickly into a second facility. We look forward to continuing our
partnership with Texas local and state offices, and launching manufacturing
operations there."

CSI could hire approximately 250 employees over the course of five years to work
at the Texas facility and manufacture the Diamondback 360°. The company will
also continue its manufacturing operations in Minnesota, where it currently
employs more than 100 people, including its headquarters staff, which also has
been expanding. In addition, CSI has more than 120 sales professionals across
the United States.

"CSI`s expansion in Texas is further proof that Texas remains the best state in
the nation for business. Our reasonable and predictable regulatory climate, low
taxes, skilled and educated workforce, and programs, such as the Texas
Enterprise Fund, all come together to strengthen the state`s economy by
attracting jobs and capital investment," Governor Rick Perry said. "This
investment in CSI is expected to bring hundreds of jobs to Texans in the
Pearland area and expand our state`s already thriving medical technology
sector."

"Our region is well served with the addition of Cardiovascular Systems`
manufacturing facility in Pearland," said Jeff Moseley, president and CEO of the
Greater Houston Partnership, primary business advocate for the 10-county Houston
region. "Coupled with the world-famous Texas Medical Center, CSI greatly expands
our medical portfolio and strengthens the region`s stature with global companies
for innovation, research and cutting-edge technology."

"Pearland EDC welcomes CSI to our business community," said Fred Welch,
executive director for Pearland Economic Development Corporation. "Our
investment in this development agreement is the result of our focus on
attracting solid companies with strong growth prospects."

CSI has reported seven quarters of sequential revenue growth since the company
commercially launched the Diamondback 360° in 2007. For the fiscal fourth
quarter ended June 30, 2009, revenue rose to $15.7 million, a 59-percent
increase over the prior-year period. Additionally, at the end of fiscal 2009,
556 hospitals were using the Diamondback 360°, up significantly from 183 a year
earlier. More than 15,000 procedures have been performed using the Diamondback
360°.

CSI received $3.5 million upon the signing of the lease and could receive up to
an additional $3.5 million over five years as milestones are met. CSI expects to
begin operations in the facility during the first half of calendar 2010.
Pearland was selected as the best location for the Diamondback 360° facility
after an extensive search process lead by Ecodev, LLC, a site selection firm
recognized for successfully uniting companies and communities in partnerships
for sustainable economic growth.

About Cardiovascular Systems, Inc.

Cardiovascular Systems, Inc., based in St. Paul, Minn., is a medical device
company focused on developing and commercializing interventional treatment
systems for vascular disease. The company`s Diamondback 360® PAD System treats
calcified and fibrotic plaque in arterial vessels throughout the leg, and
addresses many of the limitations associated with existing surgical, catheter
and pharmacological treatment alternatives. In August 2007, the U.S. FDA granted
510(k) clearance for the use of the Diamondback 360° as a therapy for PAD
(peripheral arterial disease), and CSI commenced a U.S. product launch in
September 2007. Since then, nearly 600 hospitals across the United States have
adopted the system. For more information visit the company`s Web site at
www.csi360.com.

Safe Harbor

Certain statements in this news release are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 and are
provided under the protection of the safe harbor for forward-looking statements
provided by that Act. For example, statements in this press release regarding
(i) CSI`s need for additional manufacturing capacity to accommodate its growth;
(ii) the number of employees to be hired at the Texas facility; (iii) the
amounts to be paid to CSI upon the achievement of milestones; and (iv) the
timing of CSI`s commencement of operations in Texas, are forward looking
statements. These statements involve risks and uncertainties which could cause
results to differ materially from those projected, including, but not limited
to, unanticipated delays in the construction of the facility; CSI`s actual
employee and manufacturing needs; CSI`s ability to meet milestones for
additional funds; demand for CSI`s products and CSI`s financial performance;
general economic conditions; and other factors detailed from time to time in
CSI`s SEC reports, including its Form 10-K for the fiscal year ended June 30,
2009. CSI encourages you to consider all of these risks, uncertainties and other
factors carefully in evaluating the forward-looking statements contained in this
release. As a result of these matters, changes in facts, assumptions not being
realized or other circumstances, CSI`s actual results may differ materially from
the expected results discussed in the forward-looking statements contained in
this release. The forward-looking statements made in this release are made only
as of the date of this release, and CSI undertakes no obligation to update them
to reflect subsequent events or circumstances.

For Cardiovascular Systems, Inc.:
Investor Relations, 651-259-2800
investorrelations@csi360.com
or
Padilla Speer Beardsley:
Marian Briggs, 612-455-1742
mbriggs@psbpr.com
or
Nancy A. Johnson, 612-455-1745
njohnson@psbpr.com
or
For Pearland Economic Development Corporation:
Fred Welch, 281-652-1627

Copyright Business Wire 2009