SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549
                               ------------------

                                    FORM 6-K

                        REPORT OF FOREIGN PRIVATE ISSUER

                    Pursuant to Rule 13a-16 or 15d-16 of the
                         Securities Exchange Act of 1934


                         For the month of: November 2003

                        Commission File Number: 000-28882

                             World Heart Corporation
               (Exact name of registrant as specified in charter)

                                       N/A
                 (Translation of registrant's name into English)

                                     Ontario
                         (Jurisdiction of organization)

                     1 Laser Street, Ottawa, Ontario K2E 7V1
                    (Address of principal executive offices)

                  Registrant's telephone number: (613) 226-4278



Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.

                             Form 20-F   X     Form 40-F
                                        ---              ----

Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

                              Yes              No X
                                                 ---

If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- ________

<PAGE>

This Form 6-K consists of the following:

1.   World Heart Corporation report to shareholders for the three and nine
     months ended September 30, 2003.

The information contained in this Report is incorporated by reference into
Registration Statement No. 333-109876 on Form F-3.

<PAGE>

                                                                           THIRD

                                                                         QUARTER

                                                                            2003


World Heart Corporation

                          For the three and nine months ended September 30, 2003






                                                                      WORLDHEART

                                                             Technology for Life

<PAGE>
News Release

For Immediate Release

                             WORLD HEART CORPORATION
                      ANNOUNCES THIRD QUARTER 2003 RESULTS


OTTAWA - November 5, 2003: (OTCBB: WHRTF, TSX: WHT) - World Heart Corporation
(WorldHeart) today released its unaudited consolidated financial results for the
quarter and nine months ended September 30, 2003. A summary consolidated balance
sheet, statement of cashflow and statement of loss are attached.

Highlights

Highlights for the third quarter included:

     o    ninety-three (93) devices sold year-to-date with continued growth in
          the sales of the Novacor(R)LVAS (left ventricular assist system) in
          the U.S. market;

     o    restructuring to achieve operating profitability during 2004; and

     o    the completion of a major re-capitalization, which included a
          $63,200,000 million equity offering and an agreement by Edwards
          Lifesciences, LLC (Edwards) to exchange US$78,000,000 of preferred
          shares.

Operating Results

For the first nine months of 2003, revenues were up by 6% and the gross margin
was $1,667,922, compared with negative gross margin of $385,916 for the same
period last year. Year-to-date Novacor LVAS sales totaled 93 units, compared
with 82 units to the end of the 2002 third quarter. WorldHeart continues to
increase Novacor LVAS sales in the U.S. market. Sales in the U.S. during the
quarter were 17 units, which were up from 13 units in the second quarter and 5
in the first quarter of 2003. Overall, third quarter Novacor LVAS pump sales
were 27 units compared with 35 units sold in the second quarter of this year and
32 units sold during the third quarter of 2002.

Excluding restructuring costs, amortization and depreciation, financing and
foreign exchange gains or losses the loss from operations for the quarter was
$5,186,498, compared to $7,584,054 for the same period in 2002 and $18,076,691
for the nine months ended September 30, 2003, compared to $26,415,950 in 2002.

Revenues for the quarter ended September 30, 2003 were $2,834,210, compared with
$3,049,036 a year ago, generating a contribution in the second quarter of this
year of $524,063, compared with a negative contribution of $127,340 for the same
quarter last year. Net loss for the third quarter this year was $13,109,650, or
$0.45 per share, compared with $14,363,490, or $0.80 per share last year.
Included in this loss is a restructuring charge of $2,848,007 associated with
the Company's decision to focus on achieving profitability. Restructuring costs
included severance

<PAGE>

costs associated with the elimination of 32 positions, representing 24% of the
workforce, in conjunction with a reduced rate of investment in the
next-generation HeartSaverVAD and the repurchase of a royalty agreement on sales
of the Novacor LVAS.

Revenues for the first nine months of 2003 were $8,707,987, compared with
$8,191,284 for the same period last year, which generated a gross margin of
$1,667,922 for the period, compared to negative contribution of $385,916 for the
same nine-month period in 2002. Net loss for the nine months was $25,743,530, or
$1.08 per share, compared with a net loss of $37,366,333, or $2.11 per share
last year.

Re-capitalization Summary

During the third quarter, WorldHeart completed a private placement transaction
in the United States and Canada for gross proceeds of approximately $63,200,000.

In addition, as a condition of the transaction, Edwards agreed to exchange
preferred shares that it held in WorldHeart, and with a combined face value of
US$78,000,000, for a total of 8,481,128 WorldHeart common shares and 7,000,000
warrants. During the quarter, Edwards exchanged preferred shares with a face
value of US$58,000,000 for 4,981,128 WorldHeart common shares. The completion of
the exchange of the remaining preferred shares with a face value of
US$20,000,000 for 3,500,000 WorldHeart common shares and 7,000,000 warrants,
subject to shareholder approval, which will be sought at a special meeting of
shareholders on November 25, 2003.

Once completed, these transactions will have added approximately $125,000,000 to
shareholders' equity.

Liquidity

WorldHeart ended the third quarter with $35,233,713 in cash. Proceeds from the
$63,200,000 equity transaction were applied to transaction costs $5,965,000,
repayment of all loans ($12,200,000), reduction in accounts payable and other
obligations ($7,300,000) and restructuring costs ($2,000,000).

Company Outlook

Roderick M. Bryden, President and CEO of WorldHeart, commented on the company
outlook: "The financial and product base of WorldHeart gives the Company the
opportunity to seize a significant share of the expanding market for implantable
heart-assist devices. Novacor LVAS is recognized for its durability and
reliability, characteristics that are increasingly important as use of the
device shifts to longer-term reliance by the recipient. Total implants of
Novacor LVAS using the ePTFE inflow conduit now exceed 160, with risk of stroke
remaining low. We are very optimistic about our ability to compete in North
America and other world markets with Novacor LVAS."

"The Destination Therapy Randomized Trial, comparing Novacor LVAS with
HeartMate(R) XVE LVAS (left ventricular assist system), is very exciting for
WorldHeart. Subject to obtaining Food and Drug Administration (FDA) approval, we
expect to enroll centers and patients beginning in the first quarter, 2004.
Reimbursement by Centers for Medicare and Medicaid Services (CMS) will be an
essential factor in successful implementation of this Trial. After discussion
with officials of CMS, we are confident that reimbursement coverage will be
available."

<PAGE>

"The Customer Funding Program announced in the second quarter is being well
received. Initial sales under this program occurred in the third quarter, and
sales are expected to accelerate during the fourth quarter and in 2004. The
Customer Funding Program is expected to significantly speed the process of
enrolling centers in the Randomized Trial, as well as supporting commercial
sales within existing indications."

"Increased revenues, together with improved product margins and reduced expenses
resulting from the third quarter cost reductions, are expected to narrow the
operating loss in the fourth quarter. The recapitalization has removed
substantially all non-operating expenses, except for amortization and
depreciation, resulting in sharply lower net loss expected for the quarter," Mr.
Bryden said.

About Novacor LVAS
Novacor LVAS is an implanted electromagnetically driven pump that provides
circulatory support by taking over part or all of the workload of the left
ventricle. With implants in over 1490 patients, no deaths have been attributed
to device failure, and some recipients have lived with their original pumps for
as long as four years - statistics unmatched by any other implanted mechanical
circulatory support device on the market.

Novacor LVAS is commercially approved as a bridge to transplantation in the U.S.
and Canada. In Europe, the Novacor LVAS has unrestricted approval for use as a
bridge to transplantation, an alternative to transplantation and to support
patients who may have an ability to recover the use of their natural heart. In
Japan, the device is commercially approved for use in cardiac patients at risk
of imminent death from non-reversible left ventricular failure for which there
is no alternative except heart transplantation.

World Heart Corporation, a global medical device company based in Ottawa,
Ontario and Oakland, California, is currently focused on the development and
commercialization of pulsatile ventricular assist devices. Its Novacor LVAS
(Left Ventricular Assist System) is well established in the marketplace and its
next-generation technology, HeartSaverVAD(TM), is a fully implantable assist
device intended for long-term support of patients with heart failure.

Any forward-looking statements in this release are made pursuant to the safe
harbour provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that all forward-looking statements involve risk and
uncertainties, including without limitation, risks in product development and
market acceptance of and demand for the Corporation's products, risks of
downturns in economic conditions generally, and in the medical devices markets,
risks associated with costs and delays posed by government regulation,
limitations on third-party reimbursement, inability to protect proprietary
technology, potential product liability and other risks detailed in the
Corporation's filings with the U.S. Securities and Exchange Commission. All
financial figures are prepared in accordance with Canadian generally accepted
accounting principles (GAAP) and are expressed in Canadian dollars.


For more information, please contact:
Mark Goudie,
Vice-President, Finance and CFO
World Heart Corporation
(613) 226-4278, ext: 2509, or (510) 563-4995

<PAGE>

World Heart Corporation
Summary Consolidated Statements of Loss
Amounts in Canadian Dollars, except number of shares
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
                                                              Three months ended                Nine months ended
                                                        Sept. 30, 2003   Sept. 30, 2002   Sept. 30, 2003   Sept. 30, 2002
--------------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>              <C>              <C>              <C>
                                                           (unaudited)       (unaudited)       (unaudited)      (unaudited)

Revenue                                                    $  2,834,210     $  3,049,036     $  8,707,987     $ 8,191,284
Cost of goods sold                                           (2,310,147)      (3,176,376)      (7,040,065)     (8,577,200)
                                                           ---------------------------------------------------------------
Gross margin                                                    524,063         (127,340)       1,667,922        (385,916)

Expenses
   Selling, general and administrative                       (2,561,308)      (2,509,496)      (7,531,979)     (7,798,349)
   Research and development                                  (3,149,253)      (4,947,218)     (12,212,634)    (18,231,685)
   Restructuring costs                                       (2,848,007)               -       (2,848,007)               -
   Amortization of intangibles                                 (168,965)      (1,830,626)      (3,830,217)     (5,491,878)
                                                           ---------------------------------------------------------------
                                                             (8,727,533)      (9,287,340)     (26,422,837)    (31,521,912)
                                                           ---------------------------------------------------------------

Loss before the undernoted                                   (8,203,470)      (9,414,680)     (24,754,915)    (31,907,828)

Other income (expenses)                                      (4,906,180)      (4,948,810)        (988,615)     (5,458,505)
                                                           ---------------------------------------------------------------
Net loss for the period                                    $(13,109,650)    $(14,363,490)    $(25,743,530)  $ (37,366,333)
                                                           ===============================================================

Weighted average number of common  shares                    28,879,631       17,970,127       23,858,270      17,715,105
                                                           ===============================================================

Basic and diluted loss per common share                         $ (0.45)         $ (0.80)         $ (1.08)        $ (2.11)
==========================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
World Heart Corporation
Summary Consolidated Statements of Cash Flows
                                                                                                                         =
Amounts in Canadian dollars

--------------------------------------------------------------------------------------------------------------------------
                                                              Three months ended                Nine months ended
                                                        Sept. 30, 2003   Sept. 30, 2002   Sept. 30, 2003   Sept. 30, 2002
--------------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>              <C>              <C>              <C>
                                                           (unaudited)       (unaudited)       (unaudited)      (unaudited)

CASH FLOWS FROM (USED IN)

Operating activities                                       $(11,916,072)    $ (2,336,613)    $(23,042,545)   $(17,966,499)
Investing activities                                             51,832       (1,344,409)         131,296       5,108,359
Financing activities                                         47,064,755          (40,990)      58,603,749        (197,793)
Effect of exchange rate changes on cash
     and cash equivalents                                        (8,353)         (44,904)        (706,968)         52,324
                                                           ---------------------------------------------------------------

Increase / (decrease) in cash and cash
     equivalents for the period                              35,192,162       (3,766,916)      34,985,532     (13,003,609)

Cash and cash equivalents beginning of the period                41,551        6,108,466          248,181      15,345,159
                                                           ---------------------------------------------------------------

Cash and cash equivalents end of the period                $ 35,233,713      $ 2,341,550     $ 35,233,713     $ 2,341,550
==========================================================================================================================
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
World Heart Corporation
Summary Consolidated Balance Sheets
Amounts in Canadian Dollars
--------------------------------------------------------------------------------------------------------------------
                                                                      Sept. 30,           June 30,           Dec. 31,
                                                                           2003               2003               2002
--------------------------------------------------------------------------------------------------------------------
                                                                   (unaudited)         (unaudited)
<S>                                                              <C>                 <C>               <C>
ASSETS
    Cash                                                          $ 35,233,713        $    41,551       $   248,181
    Other current assets                                             8,891,689          8,893,645        11,480,183
    Cash pledged as collateral for lease                               712,743            785,072         1,183,200
    Capital assets                                                   3,464,647          3,749,811         4,244,371
    Goodwill, intangible and other assets                           23,822,498         24,558,669        27,889,978
                                                            --------------------------------------------------------
                                                                  $ 72,125,290      $  38,028,748      $ 45,045,913
                                                            ========================================================

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
    Current liabilities                                           $ 12,646,046      $  15,605,720      $ 17,761,982
    Loans                                                                    -         10,147,946         2,018,937
    Preferred shares                                                27,358,715         65,658,625        72,750,188
                                                            --------------------------------------------------------
                                                                    40,004,761         91,412,291        92,531,107
                                                            ========================================================

    Shareholders' equity (deficiency)
    Common stock, special warrants, rights and
          contributed surplus                                      237,241,299        138,627,577       131,892,046
    Accumulated deficit                                           (205,120,770)      (192,011,120)     (179,377,240)
                                                            --------------------------------------------------------
                                                                    32,120,529        (53,383,543)      (47,485,194)
                                                            --------------------------------------------------------

                                                                  $ 72,125,290      $  38,028,748      $ 45,045,913
====================================================================================================================
</TABLE>

<PAGE>

WORLDHEART

Third Quarter 2003 Message To Shareholders
------------------------------------------

World Heart Corporation (WorldHeart) completed a significant recapitalization
and restructuring during the third quarter of 2003 which included:

     o    a $63,200,000 private placement of equities for 74,699,548 common
          shares and an equivalent number of warrants;

     o    an agreement to exchange US$78,000,000 of currently outstanding
          preferred shares, plus accrued dividends, for common shares and
          warrants;

     o    the execution of a note purchase agreement with Export Development
          Canada to fund purchases by the Corporation's United States customers;

     o    the buy-out of a royalty agreement, eliminating a four percent royalty
          on all future sales of Novacor LVAS and related equipment;

     o    the elimination of 32 positions, or 24% of the workforce, while
          increasing positions and resources dedicated to manufacturing,
          marketing, sales and support of Novacor LVAS; and

     o    a restructuring of the Board of Directors.


These events followed other key events of the first half of this year including:

     o    approval of the ePTFE inflow conduit by the US Food and Drug
          Administration (FDA) in January 2003;

     o    submission of enhancements to the Novacor LVAS for approval by FDA and
          by Health Canada;

     o    submission of an Amended PMA Supplement for the expanded use of the
          Novacor LVAS in the United States to include some heart failure
          patients who are not candidates for transplantation; and

     o    celebration of an Italian man's 5th anniversary of active life with a
          Novacor LVAS.


Entering the fourth quarter of this year World Heart is financially strong,
tightly focused on sale and support of Novacor LVAS, which we believe to be the
most reliable and durable heart assist device in the world, and moving
effectively to capture market share.

Early in the fourth quarter the US Centers for Medicare and Medicaid Services
(CMS) issued a National Coverage Decision extending reimbursement to destination
therapy use of LVAD's approved for that use by FDA. The Novacor LVAS is not yet
approved by FDA for that use, however, discussions with CMS officials confirmed
that coverage would be extended to Novacor LVAS for destination therapy use if
implanted within an approved trial under an Investigational Device Exemption
(IDE), and Category B reimbursement status approved by the FDA.

On November 4, 2003 WorldHeart announced that it intends to proceed with a
destination therapy trial with Novacor LVAS randomized with the Heartmate XVE.
An IDE is already in


<PAGE>

place for the feasibility phase of this trial (INTrEPID) and Category B status
was accorded Novacor under that IDE. Subject to FDA approval, the pivotal,
randomized trial will be conducted under a supplement to this IDE. Approval is
expected to permit enrollment under the trial to commence during the first
quarter of 2004.

Novacor LVAS is recognized as the leader in reliability, durability and
predictability of wear-out. In the early years following the 1998 US approval
for the use of the Novacor LVAS and HeartMate as a bridge-to-transplantation
most implants were expected to support the patient for six months or less -
giving little competitive value to device longevity. Today it is recognized that
many "bridge" patients will rely on the device for a year and beyond, and focus
is shifting to destination-therapy use. The HeartMate XVE LVAS labeling, as
described in the Patient Information Booklet for that product, states that the
risk of reoperation to fix or replace the HeartMate XVE is 29.8% at 6 - 12
months, and 77.6% at 12 - 24 months. This provides a stark contrast to the
Novacor reliability record.

Until January 2003 and FDA approval of the ePTFE inflow conduit, the Novacor
LVAS had a competitive disadvantage of higher risk of stroke than Heartmate. By
the end of the third quarter Novacor implants in the USA, Canada and Europe,
using ePTFE conduits, totaled more than 160, with stroke rates competitive with
HeartMate. There is no longer a trade-off between higher risk of stroke and very
low risk of device failure. This combined with the opportunity to implant
Novacor LVAS as destination therapy, in approximately 30 centers in the United
States, with reimbursement and direct comparison with Heartmate, provides a
window for dramatic increases in WorldHeart revenues and market share.

During the first nine months of this year, financial resources were inadequate
for normal operations. In spite of the tenuous financial position, total sales
increased over the same period a year ago. A program to reduce product costs of
Novacor LVAS was slowed by inadequate resources, but will result in
substantially improved margins through 2004 and beyond. Operating expenses,
excluding restructuring and non-cash amortization expenses, for the nine months
this year were reduced by $6,285,421 from the year before, to $19,744,613 from
$26,030,034. Third quarter operation expenses, excluding restructuring and
non-cash amortization expenses, this year were $5,710,561 compared with
$7,456,714 a year earlier. This reduced expense base and improved gross margins
will contribute to the goal of operating profitability by fourth quarter next
year.

The final quarter of 2003 will focus on the key factors required to seize the
revenue growth opportunity available to WorldHeart including:

     o    expansion of our US sales capacity and penetration under the
          leadership of our newly hired North American Sales Director, John
          Marinchak;

     o    establishment of a direct sales force and support team for Novacor
          LVAS in Europe;

     o    completion of the trial design and protocols for the Novacor LVAS
          versus HeartMate randomized destination therapy trial;

     o    receipt of FDA approval for Novacor enhancements submitted for
          approval in January 2003;

<PAGE>

     o    advancing the Amended PMA Supplement for use of Novacor LVAS in an
          expanded bridge-to-transplantation population; and

     o    advancing the manufacturing cost reduction program to permit maximum
          benefit of improved gross margins by second quarter of 2004.

These are dynamic and challenging times for WorldHeart. The dedication of our
employees and the confidence and support of our customers and suppliers carried
our company through extremely difficult times in the first nine months of this
year. Those qualities promise to lead WorldHeart to major gains in revenues,
market share and profitability in 2004.



/s/ Roderick M. Bryden
------------------------
Roderick M. Bryden
President & Chief Executive Officer

<PAGE>

WORLD HEART CORPORATION


Unaudited Consolidated Financial Statements
For the three and nine month periods ended September 30, 2003

<PAGE>

WORLD HEART CORPORATION
Consolidated Balance Sheets
(Canadian Dollars)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
                                                          September 30,      December 31,
                                                                   2003              2002
------------------------------------------------------------------------------------------
                                                            (unaudited)
<S>                                                        <C>               <C>
ASSETS

Current assets
 Cash and cash equivalents                                   35,233,713       $   248,181
 Accounts and other receivables                               2,768,945         2,131,537
 Tax credit receivable                                          381,759         2,770,000
 Prepaid expenses                                               516,656           342,944
 Inventory                                                    5,224,329         6,235,702
                                                    --------------------------------------
                                                             44,125,402        11,728,364
Cash pledged as collateral for lease                            712,743         1,183,200
Capital assets                                                3,464,647         4,244,371
Goodwill                                                     22,273,407        22,273,407
Intangible assets                                             1,308,745         5,138,962
Other assets                                                    240,346           477,609
                                                    --------------------------------------

                                                             72,125,290      $ 45,045,913
                                                    ======================================

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
 Accounts payable and accrued liabilities                 $  10,022,981     $  15,075,304
 Accrued compensation                                         2,623,065         2,622,849
 Short-term loan                                                      -         2,018,937
 Current portion of capital lease                                     -            63,829
                                                    --------------------------------------
                                                             12,646,046        19,780,919
Preferred shares                                             27,358,715        72,750,188
                                                    --------------------------------------
                                                             40,004,761        92,531,107
                                                    --------------------------------------

Shareholders' equity (deficiency)
 Common shares
   Issued and outstanding - 101,631,553
     (December 31, 2002 - 17,970,127)                       221,065,575        87,788,808
 Special warrants and rights                                          -         3,420,016
 Contributed surplus                                         16,175,724        40,683,222
 Accumulated deficit                                       (205,120,770)     (179,377,240)
                                                    --------------------------------------
                                                             32,120,529       (47,485,194)
                                                    --------------------------------------

                                                          $  72,125,290     $  45,045,913
==========================================================================================
</TABLE>

       (The accompanying notes are an integral part of these consolidated
                             financial statements.)

<PAGE>

WORLD HEART CORPORATION
Consolidated Statements of Loss
(Canadian Dollars)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
                                                        Three months ended                     Nine months ended
                                                 September 30,      September 30,      September 30,      September 30,
                                                  2003                2002                2003              2002
-------------------------------------------------------------------------------------------------------------------------
                                                   (unaudited)       (unaudited)        (unaudited)         (unaudited)
<S>                                              <C>               <C>                  <C>                <C>
Revenue (Note 8)                                 $  2,834,210      $    3,049,036       $  8,707,987       $  8,191,284
                                          -------------------------------------------------------------------------------
Cost of goods sold
   Direct materials and labour                     (1,065,348)         (1,312,400)        (3,877,316)        (3,538,033)
   Overhead and other                              (1,244,799)         (1,863,976)        (3,162,749)        (5,039,167)
                                          -------------------------------------------------------------------------------
                                                   (2,310,147)         (3,176,376)        (7,040,065)        (8,577,200)
                                          -------------------------------------------------------------------------------

Gross margin                                          524,063            (127,340)         1,667,922           (385,916)
                                          -------------------------------------------------------------------------------

Expenses
   Selling, general and administrative             (2,561,308)         (2,509,496)        (7,531,979)        (7,798,349)
   Research and development                        (3,149,253)         (4,947,218)       (12,212,634)       (18,231,685)
   Restructuring costs (Note 11)                   (2,848,007)                   -        (2,848,007)                  -
   Amortization of intangibles                       (168,965)         (1,830,626)        (3,830,217)        (5,491,878)
                                          -------------------------------------------------------------------------------
                                                   (8,727,533)         (9,287,340)       (26,422,837)       (31,521,912)
                                          -------------------------------------------------------------------------------

Loss before the undernoted                         (8,203,470)         (9,414,680)       (24,754,915)       (31,907,828)

Other income (expenses)
   Foreign exchange gain (loss)                      (440,135)         (3,044,699)         10,775,320            101,274
   Investment income (expense)                          9,918               1,588              (7,989)           128,312
   Interest expense and financing costs            (4,475,963)         (1,905,699)        (11,755,946)        (5,688,091)
                                          -------------------------------------------------------------------------------

Net loss for the period                           (13,109,650)        (14,363,490)        (25,743,530)       (37,366,333)

Accumulated deficit, beginning of the
period                                           (192,011,120)       (152,618,944)       (179,377,240)      (129,616,101)
                                          -------------------------------------------------------------------------------

Accumulated deficit, end of the period         $ (205,120,770)     $ (166,982,434)     $ (205,120,770)    $ (166,928,434)
                                          ===============================================================================

Weighted average number of common shares
outstanding                                        28,879,631          17,970,127          23,858,270         17,715,105
                                          ===============================================================================

Basic and diluted loss per common share              $ (0.45)             $ (0.80)            $ (1.08)           $ (2.11)
=========================================================================================================================

              (The accompanying notes are an integral part of these
                      consolidated financial statements.)
</TABLE>
<PAGE>



WORLD HEART CORPORATION
Consolidated Statements of Cashflow
(Canadian Dollars)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
                                                              Three months ended                    Nine months ended
                                                        September 30,     September 30,        September 30,  September 30,
                                                            2003               2002             2003              2002
----------------------------------------------------------------------------------------------------------------------------
                                                            (unaudited)    (unaudited)         (unaudited)      (unaudited)
<S>                                                        <C>             <C>                <C>             <C>
CASH FLOWS FROM (USED IN)

Operating activities
   Net loss for the period                                 $(13,109,650)   $ (14,363,490)      $ (25,743,530) $ (37,366,333)
   Items not involving cash -
      Amortization and depreciation                             596,053        2,300,633           5,602,236      6,807,751
      Interest on preferred shares and debt                   1,645,154        1,905,699           5,588,188      5,688,091
      Writedown of  tax credit receivable                             -                -           1,670,000              -
      Unrealized foreign exchange gain (loss)                    (4,397)               -             166,217              -
      Issuance of options and warrants for services
         and amortization of non-cash financing costs         1,482,272          136,757           3,563,780        136,757
      Foreign exchange (gain) loss on preferred
         shares                                                 296,910        3,127,461         (10,589,742)      (168,513)
   Change in operating components of working capital         (2,822,414)       4,556,327          (3,299,694)     6,935,748
                                                     -----------------------------------------------------------------------
                                                            (11,916,072)      (2,336,613)        (23,042,545)   (17,966,499)
                                                     -----------------------------------------------------------------------
Investing activities
   Redemption of short-term investments                               -                -                   -      6,881,300
   Purchase of capital assets                                   (24,894)        (154,009)           (172,944)      (582,541)
   Cash pledged as collateral for lease                          76,726       (1,190,400)            304,240     (1,190,400)
                                                     -----------------------------------------------------------------------
                                                                 51,832       (1,344,409)            131,296      5,108,359
                                                     -----------------------------------------------------------------------
Financing activities
   Capital lease repayments                                           -          (40,990)            (63,829)      (120,735)
   Repayment of short-term loan                                       -                -          (2,018,937)             -
   Senior and subordinated loan proceeds, net of
          issue costs of $561,754                                     -                -           9,438,246              -
   Repayment of senior and subordinated loan                (10,000,000)               -         (10,000,000)             -
   Convertible debenture proceeds, net of issue
          costs of $81,750                                    1,118,250                -           1,118,250              -
   Repayment of convertible debenture                        (1,200,000)               -          (1,200,000)             -
   Bridge loan proceeds, net of issue costs of
          $35,280                                             1,016,720                -           1,016,720              -
   Repayment of bridge loan                                  (1,052,000)               -          (1,052,000)             -
   Funds received from the exercise of warrants                 (17,660)               -           1,550,582        (77,058)
   Issuance of common shares through private
          placement,  net of issue costs of $384,728                  -                -           2,615,272              -
   Issuance of common shares through private
          placement,  net of issue costs of
          $5,965,163                                         57,199,445                -          57,199,445              -
                                                     -----------------------------------------------------------------------
                                                             47,064,755          (40,990)         58,603,749       (197,793)
                                                     -----------------------------------------------------------------------
Effect of exchange rate changes on cash
     And cash equivalents                                       (8,353)          (44,904)           (706,968)       52,324
                                                     -----------------------------------------------------------------------

Increase (decrease) in cash and cash  equivalents
      For the period                                        35,192,162        (3,766,916)         34,985,532   (13,003,609)

Cash and cash equivalents beginning of the period               41,551         6,108,466             248,181    15,345,159
                                                     -----------------------------------------------------------------------

Cash and cash equivalents end of the period               $ 35,233,713       $ 2,341,550        $ 35,233,713   $ 2,341,550
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
              (The accompanying notes are an integral part of these
                      consolidated financial statements.)

<PAGE>

WORLD HEART CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2003
--------------------------------------------------------------------------------

1.   Significant Accounting Policies

(a)  Basis of presentation

The accompanying unaudited interim consolidated financial statements have been
prepared by management in accordance with accounting principles generally
accepted in Canada (GAAP) and pursuant to the rules and regulations of the
Ontario Securities Commission regarding interim financial reporting. However,
these interim consolidated financial statements do not conform in all respects
to the requirements of GAAP for annual financial statements. They include all
assets, liabilities, revenues and expenses of the Corporation and its
subsidiaries. These unaudited condensed notes to the interim consolidated
financial statements should be read in conjunction with the audited financial
statements and notes thereto for the year ended December 31, 2002.

The preparation of these unaudited consolidated financial statements in
conformity with GAAP requires management to make estimates and assumptions that
affect the amounts reported in the consolidated financial statements and the
accompanying notes. Actual results could differ from these estimates and the
operating results for the interim periods presented are not necessarily
indicative of the results expected for the full year. In the opinion of
management, these unaudited consolidated financial statements reflect all normal
and recurring adjustments considered necessary to state fairly the results for
the periods presented.


2.  Tax Credit Receivable

The tax credit receivable relates to the Ontario Business Research Institute tax
credit program. The Corporation accrued a tax credit receivable in the amount of
$2,770,000 during 2001 which was associated with research payments made to the
Cardiovascular Devices Division of the Ottawa Heart Institute Research
Corporation (CVD) from 1997 to 2000. This claim was audited by the Ontario
Government's Ministry of Finance and the Ministry issued a preliminary audit
assessment reducing the amount claimed. The proposed reduction relates to the
Ministry's assertion that the Corporation and CVD were connected and, therefore,
ineligible under the program prior to mid May 1999 and to the proposed
disallowance of certain expenditures. The Corporation recorded a provision in
the amount of $1,670,000 during the first quarter of 2003 which represents its
best estimate of the amounts which will not be recovered. This provision has
been charged to research and development expense. During the third quarter of
2003 the Corporation received $718,241 of the amount receivable.

<PAGE>

WORLD HEART CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2003
--------------------------------------------------------------------------------

3.   Intangible Assets

The cost and accumulated amortization of the Corporation's intangible assets as
of September 30, 2003 and December 31, 2002 are as follows:
<TABLE>
<CAPTION>
    -----------------------------------------------------------------------------------------
                                                       September 30, 2003
                                    ---------------------------------------------------------
                                                               Accumulated          Net Book
                                                 Cost         Amortization             Value
    -----------------------------------------------------------------------------------------
    <S>                                  <C>                  <C>                <C>
    Purchased technology                 $ 17,043,321         $ 15,874,555       $ 1,168,765
    Other intangible assets                 6,436,678            6,296,699           139,980
                                    ---------------------------------------------------------

                                         $ 23,479,999         $ 22,171,254        $1,308,745
    -----------------------------------------------------------------------------------------


    -----------------------------------------------------------------------------------------
                                                       December 31, 2002
                                    ---------------------------------------------------------
                                                               Accumulated          Net Book
                                                 Cost         Amortization             Value
    -----------------------------------------------------------------------------------------

    Purchased technology                 $ 17,043,321         $ 13,089,658       $ 3,953,663
    Other intangible assets                 6,436,678            5,251,379         1,185,299
                                    ---------------------------------------------------------

                                         $ 23,479,999         $ 18,341,037       $ 5,138,962
    -----------------------------------------------------------------------------------------
</TABLE>

4.   Private Placements

In separate closes on January 3, 2003 and January 8, 2003, the Corporation
completed private placements totalling 2,343,750 units (Units) at a price of
$1.28 per unit for gross proceeds of $3,000,000 (issue costs were $384,728).
Each Unit comprises one common share and one warrant to purchase a common share.
Each warrant is exercisable into one common share at an exercise price of $1.60
per share for a period of five years. The Corporation granted to the placement
agent 234,374 broker warrants (Broker Warrants). Each Broker Warrant is
exercisable at a price of $1.60 into one common share and one compensation
warrant (Compensation Warrants) at any time prior to December 31, 2004. Each
Compensation Warrant is exercisable into one common share of the Corporation at
any time prior to December 31, 2007 at a price of $1.60 per common share.

On April 2, 2003, the Corporation issued 1,000,000 common shares at a price of
$1.60 per share for gross proceeds of $1,600,000 pursuant to the exercise of
previously issued warrants with an expiry date of January 2, 2008. As
compensation for the early exercise of the warrants an additional 1,760,000
warrants were issued. These warrants are exercisable into common shares of the
Corporation at $1.60 per share until April 2, 2008.

On September 23, 2003, the Corporation completed a private placement of
74,699,458 Units in the United States and Canada at $0.85 and US$0.62 per Unit,
for total gross proceeds of $63,164,608 (issue costs were $5,965,163). Each Unit
consists of one common share and one common share purchase warrant. Each warrant
may be exercised at any time prior to September

<PAGE>

WORLD HEART CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2003
--------------------------------------------------------------------------------

22, 2008 at a price of $1.15 per share. The Warrants are callable by the
Corporation for cash exercise at any time the Common Shares trade at $2.50
(prior to any share splits) for 20 consecutive trading days, however, no more
than 20% of the total Warrant issue may be called in any three-month period. The
Corporation granted, to the agents of the private placement, 7,030,355 agents'
warrants. The terms of the agents' warrants are substantially the same as the
Warrants issued as part of the underlying transaction.


5.   Debt

On January 28, 2003, the Corporation entered into a senior loan agreement
totalling $7,000,000 and a subordinated loan agreement totalling $3,000,000
(Loans). The Loans originally matured on July 31, 2003 and bore interest rates
of 18% per annum payable monthly. The loans were to be repaid in full on the
earlier of the maturity date or the completion of a replacement financing. The
Corporation paid to the lenders fees of 4% and issued a total of 3,000,000
warrants with each warrant exercisable into one common share for a period of
five years at a price of $1.60 per share. The Corporation has recorded these
warrants in contributed surplus at fair value. The lenders' fee and fair market
value of the warrants were recorded as deferred financing costs in other assets.
These deferred financing costs were amortized to interest expense and financing
costs over the term of the Loans. As collateral for the Loans, the Corporation
entered into general security agreements over all of its assets. The Loans were
amended to extend the maturity date from July 31, 2003 to August 15, 2003 and
then further extended to September 23, 2003. The Loans were repaid in full, from
proceeds of the September 23, 2003 private placement.

On July 30, 2003, the Corporation issued senior subordinated convertible
debentures for gross proceeds of $1,200,000. The debentures had a maturity of
October 22, 2003, and were convertible at the holder's option into common shares
of the corporation for $1.00 per share. The debentures were callable by the
Corporation at any time after September 15, 2003 upon payment of the outstanding
principal amount plus accrued but unpaid interest, subject to the holders having
five days in which to convert. The debentures carried interest of 14% per annum.
In addition, warrants to purchase 1,200,000 common shares, at an exercise price
of $1.20 per share, for a period of three years were issued to the debenture
holders. A value of $605,051 was attributed to the warrants and expensed over
the term of the loan. The subordinated convertible debentures were repaid in
full from the proceeds of the September 23, 2003 private placement.

On September 4, 2003 the Corporation entered into a bridge loan agreement
totaling $1,052,000. The bridge loan originally matured at the earlier of the
completion of a private placement or October 22, 2003 and bore interest at a
rate of 14% per annum payable monthly. The Corporation paid to the lender a fee
of 4% and issued a total of 830,000 common share purchase warrants each
exerciseable into one common share at a price of $1.20 until October 31, 2006. A
value of $436,966 was attributed to the warrants and expensed over the term of
the loan. The bridge loan was repaid in full from proceeds of the September 23,
2003 private placement.


6.   Preferred Shares

<PAGE>

WORLD HEART CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2003
--------------------------------------------------------------------------------

On September 22, 2003, Edwards Lifesciences, LLC (Edwards) completed the
exchange of redeemable, cumulative participating Series A preferred shares of
World Heart Inc., a subsidiary of WorldHeart , which had a face value of
US$58,000,000, for a total of 4,981,128 WorldHeart common shares.

7.   Amendment to Technology Partnerships Canada Contribution Agreement

During 2002, the Corporation's HeartSaverVAD(TM) (HeartSaver) development
programs were merged into a new optimized HeartSaver program. As a result, the
Corporation requested an amendment to the contribution agreement with Technology
Partnerships Canada (TPC) such that activities relating to the optimized
HeartSaver program would be eligible for reimbursement under an amended
contribution agreement. On May 21, 2003, TPC approved this amendment allowing
the Corporation to claim eligible expenditures for reimbursement against the
final $3,025,710 of funding available under the $9,980,000 contribution
agreement. During the nine-month period ended September 30, 2003, $3,025,710 was
claimed for reimbursement, $2,781,402 was received and $244,308 was receivable
as at September 30, 2003. In addition, the royalty rate payable to TPC was
reduced to 0.65% and is to be calculated on consolidated revenues of the
Corporation commencing January 1, 2004.


8.   Edwards Lifesciences Agreements

In the fiscal year ended December 31, 2000, the Corporation entered into a
distribution agreement (the Distribution Agreement) with Edwards whereby Edwards
would be the sole distributor, except in the United States, of the Corporation's
heart assist products for a period of five years commencing July 1, 2000. As a
result of the Distribution Agreement, WorldHeart is committed to paying a
minimum of US$2,000,000, less actual gross margin, annually to Edwards in
guaranteed gross profit on sales, where such sales are less than US$10,000,000
per year. The Corporation accounts for any shortfall of the guaranteed gross
margin on sales as a reduction of revenue. No shortfall has been recorded
relating to fiscal 2003 or subsequent periods as management has estimated that
sales volumes are sufficient to satisfy the minimum guaranteed amount.

Revenue is determined as follows:
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
                                    Three months ended                       Nine months ended
                           -------------------------------------------------------------------------------

                               September 30,     September 30,          September 30,        September 30,
                                       2003              2002                   2003                 2002
----------------------------------------------------------------------------------------------------------
<S>                              <C>                  <C>                 <C>                  <C>
Gross revenue                    $ 2,834,210          $3,049,036          $8,707,987           $8,539,433
Less: Edwards
guarantee fee                              -                   -                   -             (348,149)
                           -------------------------------------------------------------------------------

Net revenue                       $2,834,210          $3,049,036          $8,707,987           $8,191,284
----------------------------------------------------------------------------------------------------------
</TABLE>

At September 30, 2003, the Corporation had amounts owing to Edwards totaling
$606,458 (December 31, 2002 - $2,744,648) and amounts receivable from Edwards
totaling $501,738 (December 31, 2002 - $1,610,702).

<PAGE>

9.   Stock Options

Effective January 1, 2002, the Corporation adopted, on a retroactive basis, the
new recommendations of the Canadian Institute of Chartered Accountants relating
to stock based compensation. Under these new recommendations, where the fair
value-based method of accounting has not been used to account for employee stock
options, companies are required to disclose proforma net income and proforma
earnings per share, as if the fair value based method of accounting has been
used to account for these stock based awards. The estimated share based
compensation costs based on stock options granted to directors and employees and
the proforma net loss and earnings per share are as follows:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                            Three months ended                      Nine months ended
                               --------------------------------------------------------------------------------
                                     September 30,       September 30,        September 30,       September 30,
                                              2003                2002                 2003                2002
                               --------------------------------------------------------------------------------
<S>                                   <C>                 <C>                  <C>                 <C>
Net loss for the period               $(13,109,650)       $(14,363,490)        $(25,743,530)       $(37,366,333)
Estimated share based
    Compensation costs                    (579,421)           (628,516)          (1,840,370)         (1,858,259)
                               --------------------------------------------------------------------------------
Proforma net loss                     $(13,689,071)       $(14,992,006)        $(27,583,900)       $(39,224,592)
                               ================================================================================

Proforma basic loss per share               $(0.47)             $(0.83)              $(1.16)             $(2.21)
================================================================================================================
</TABLE>

The weighted average fair value of the options issued during the three months
ended September 30, 2003 was $0.75 (2002 - $1.71). The fair values of options
granted are determined using the Black-Scholes model. For the three and nine
months ended September 30, 2003 and 2002 the following weighted average
assumptions were utilized:

                                                          2003      2002
                                               ------------------------------

       Expected option life, in years                        6         6
       Volatility                                          75%       75%
       Risk free interest rate                           3.65%     3.65%
       Dividend yield                                      Nil       Nil

On March 5, 2003, the Board of Directors approved a proposal to offer employees,
officers, directors and consultants of the Corporation the opportunity to
exchange options (Option Exchange) held by them and granted prior to 2003
(Existing Options), for a reduced number of options (New Options) at a price
that more closely reflected the then current trading price. Approval of the
shareholders was required with respect to option exchanges for persons
considered to be insiders of the Corporation including the Corporation's
executive officers and members of the Board of Directors. Shareholders approved
the insiders exchange on June 16, 2003. The Toronto Stock Exchange approved the
Option Exchange on June 20, 2003.

<PAGE>

WORLD HEART CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2003
--------------------------------------------------------------------------------

The Corporation has a maximum of 3,530,000 shares that can be issued under the
Employee Stock Option Plan (ESOP). In total, participants under the ESOP chose
to exchange a total of 848,287 Existing Options for 165,623 New Options. The
incremental value of the New Options relative to the Existing Options, is
expensed over the vesting period of the New Options.

10.  Segmented Information

Operating segments are defined as components of an enterprise about which
separate financial information is available that is evaluated regularly by the
Corporation's chief decision maker in deciding how to allocate resources and
assess performance. The Corporation's chief decision maker is the Chief
Executive Officer.

The Corporation's reportable segments are its commercial operations related to
the sale of Novacor LVAS and related components and research and development
focused mainly on development of HeartSaver.

The accounting policies of the Corporation's operating segments are the same as
those described in the Corporation's audited financial statements for the year
ended December 31, 2002.

The following presents segment operating results for the three months ended
September 30, 2003 and September 30, 2002.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                     Three months ended                      Three months ended
                                     September 30, 2003                      September 30, 2002
                           ---------------------------------------------------------------------------------
                            Commercial    Research and     Total      Commercial   Research and     Total
                            operations    development                operations    development
------------------------------------------------------------------------------------------------------------
<S>                        <C>            <C>            <C>          <C>          <C>          <C>
Revenue                    $   2,834,210  $         -    $2,834,210   $ 3,049,036  $         -  $ 3,049,036
                           ---------------------------------------------------------------------------------
Cost of goods sold:
Direct materials and labour   (1,065,348)           -    (1,065,348)   (1,312,400)           -   (1,312,400)
Overheard and other           (1,244,799)           -    (1,244,799)   (1,863,976)           -   (1,863,976)
                           ---------------------------------------------------------------------------------

                              (2,310,147)           -    (2,310,147)   (3,176,376)           -   (3,176,376)
                           ---------------------------------------------------------------------------------

Gross margin                     524,063            -       524,063      (127,340)           -     (127,340)
                           ---------------------------------------------------------------------------------

Expenses
Selling, general and
   administrative             (1,069,497)  (1,491,811)   (2,561,308)   (1,267,551)  (1,241,945)  (2,509,496)
Research and development               -   (3,149,253)   (3,149,253)            -   (4,947,218)  (4,947,218)
Restructuring costs           (1,518,807)  (1,329,200)   (2,848,007)            -            -            -
Amortization of intangibles      (83,483)     (85,482)     (168,965)     (914,313)    (916,313)  (1,830,626)
                           ---------------------------------------------------------------------------------

                              (2,671,787)  (6,055,746)   (8,727,533)   (2,181,864)  (7,105,476)  (9,287,340)
                           ---------------------------------------------------------------------------------

Loss before the undernoted $  (2,147,724) $(6,055,746)   (8,203,470)  $(2,309,204) $(7,105,476)  (9,414,680)
                           ===========================                =========================
Other income (expenses), net                             (4,906,180)                             (4,948,810)
                                                     ---------------                         ---------------

Net loss for the period                                $(13,109,650)                           $(14,363,490)
============================================================================================================
</TABLE>
<PAGE>

WORLD HEART CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2003
--------------------------------------------------------------------------------





The following presents segment operating results for the nine months ended
September 30, 2003 and September 30, 2002.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                    Nine months ended                         Nine months ended
                                    September 30, 2003                        September 30, 2002
                           --------------------------------------------------------------------------------------
                            Commercial   Research and     Total      Commercial    Research and      Total
                            operations   development                 operations    development
-----------------------------------------------------------------------------------------------------------------
<S>                         <C>          <C>             <C>         <C>           <C>              <C>
                            $8,707,987    $          -   $8,707,987  $  8,191,284  $           -    $ 8,191,284
Revenue

Cost of goods sold:
Direct materials and labour (3,877,316)              -   (3,877,316)   (3,538,033)             -     (3,538,033)
Overheard and other         (3,162,749)              -   (3,162,749)   (5,039,167)             -     (5,039,167)
                           --------------------------------------------------------------------------------------

                            (7,040,065)              -   (7,040,065)   (8,577,200)             -     (8,577,200)
                           --------------------------------------------------------------------------------------

Gross margin                 1,667,922               -    1,667,922      (385,916)             -       (385,916)
                           --------------------------------------------------------------------------------------

Expenses
Selling, general and
   administrative           (3,433,673)     (4,098,306)  (7,531,979)   (3,720,096)    (4,078,253)    (7,798,349)

Research and development             -     (12,212,634) (12,212,634)           -     (18,231,685)   (18,231,685)
Restructuring costs         (1,518,807)     (1,329,200)  (2,848,007)           -               -              -
Amortization of intangibles (1,912,109)     (1,918,108)  (3,830,217)   (2,742,939)    (2,748,939)    (5,491,878)
                           --------------------------------------------------------------------------------------

                            (6,864,589)    (19,558,248) (26,422,837)   (6,463,035)   (25,058,877)   (31,521,912)
                           --------------------------------------------------------------------------------------

Loss before the undernoted $(5,196,667)  $ (19,558,248) (24,754,915) $ (6,848,951)  $(25,058,877)   (31,907,828)
                           ============================              ============================
Other income (expenses), net                               (988,615)                                 (5,458,505)
                                                      --------------                            ----------------

Net loss for the period                                $(25,743,530)                               $(37,366,333)
================================================================================================================
</TABLE>

11.  Restructuring

On September 23, 2003 the Corporation realigned its business operations to focus
on commercial operations and to reduce research and development costs. An
increased emphasis will be spent on sales, marketing and a reduction in
manufacturing costs associated with the Novacor LVAS. The company is also
reducing the rate of expenditure associated with the development of the next
generation HeartSaver VAD. As part of this initiative the company eliminated 32
positions, which amounts to a 24% reduction.

Total restructuring costs, at September 30, 2003, amount to $2,848,007. These
relate to employee severance and termination costs of $1,392,950, costs related
to the buyout of a Novacor LVAS royalty agreement of $1,421,670 and other
miscellaneous costs amounting to $33,387. As at September 30, 2003 there
remained $821,299 in accounts payable and accrued liabilities relating to
restructuring costs.

<PAGE>

WORLD HEART CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2003
--------------------------------------------------------------------------------





12.  United States Accounting Principles

The consolidated financial statements have been prepared in accordance with
Canadian GAAP. These principles differ, as they affect the Corporation, for the
nine month periods ended September 30, 2003 and 2002 and for the balance sheets
at September 30, 2003 and December 31, 2002 in the following material respects
from US GAAP. There are no differences in reported cash flows for the periods
presented.

<TABLE>
<CAPTION>
(a)  Balance sheets
     -------------------------------------------------------------------------------------------------------------
                                                                                         Nine months ended
                                                                            --------------------------------------
                                                                                 September 30,        December 31,
                                                                                          2003                2002

     -------------------------------------------------------------------------------------------------------------
     <S>                                                                          <C>                 <C>
     ASSETS
     Current assets                                                               $ 44,125,402        $11,728,364
        Cash pledged as collateral for lease                                           712,743          1,183,200
        Capital assets                                                               3,464,647          4,244,371
        Goodwill and intangible assets (1)                                          23,582,152         26,128,916
        Other assets                                                                   240,346            477,609
                                                                            --------------------------------------

                                                                                  $ 72,125,290        $43,762,460
                                                                            ======================================

     LIABILITIES AND SHAREHOLDERS' EQUITY
     Current liabilities                                                          $ 12,646,046        $19,780,919
        Obligation under research and development arrangement (2)                            -          3,420,016
                                                                            --------------------------------------

                                                                                    12,646,046         23,200,935
                                                                            --------------------------------------

     Preferred shares (3)                                                           33,090,237        111,411,319
                                                                            --------------------------------------

     Shareholders' equity (deficiency)
        Common shares  (4)                                                         265,922,085        136,451,958
        Additional paid in capital                                                   7,325,920          3,731,886
        Accumulated deficit (4)                                                   (246,858,998)      (231,033,638)
                                                                            --------------------------------------

                                                                                    26,389,007        (90,849,794)
                                                                            --------------------------------------

                                                                                  $ 72,125,290        $43,762,460
     =============================================================================================================
</TABLE>

<PAGE>

WORLD HEART CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2003
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(b) Statements of loss
     -------------------------------------------------------------------------------------------------------------
                                                                                          Nine months ended
                                                                            --------------------------------------
                                                                                 September 30,        December 31,
                                                                                          2003                2002

     -------------------------------------------------------------------------------------------------------------
     <S>                                                                          <C>                 <C>

    Net loss in accordance with Canadian GAAP                                     $(25,743,530)      $(37,366,333)
    Adjustments to reconcile to US GAAP:
    Amortization of purchased in-process research and development  (1)               1,283,453          2,426,079
    Interest on preferred shares (3)                                                 5,736,134          5,688,480
    Foreign exchange translation on shares (3)                                       2,731,088            165,692
    Gain on settlement of obligation under research and
           development agreement (2)                                                 2,299,674                  -
                                                                            --------------------------------------


    Net loss and comprehensive loss in accordance with US GAAP                    (13,693,181)        (29,086,082)
    Accretion on preferred shares (3)                                              (2,132,179)         (5,323,736)
                                                                            --------------------------------------

    Net loss applicable to common shareholders                                  $ (15,825,360)       $(34,409,818)
                                                                            ======================================

    Loss per common share
    Weighted average number of common shares outstanding                           23,858,270          17,715,105
                                                                           --------------------------------------
    Basic and diluted loss per common share                                            $(0.66)             $(1.94)
    =============================================================================================================
</TABLE>

(c)  Footnotes

(1)      Under US GAAP, acquired in-process research and development is
     required to be expensed if the related technology has not reached
     technological feasibility and does not have an alternative future use.
     Under Canadian GAAP this amount is capitalized and amortized over its
     useful life. Under US GAAP net loss includes amortization relating to
     intangible assets of $2,546,765 for the nine months ended September 30,
     2003 (2002 - $3,065,799).
(2)      Under US GAAP, the obligation under the research and development
     arrangement is classified as a liability. Under Canadian GAAP, this amount
     is reflected as equity as New Generation Biotech (Equity) Fund Inc.
     (NewGen) was to receive equity securities of the Corporation upon
     completion of the R&D arrangement. On January 31, 2003 the Corporation
     exchanged the 637,000 Series 1 preferred shares held by NewGen for 637,000
     common shares of World Heart and 637,000 common share purchase warrants
     exerciseable into one common share of World Heart at a price of $6.01 per
     share at any time up to January 24, 2004. As a result of the transaction
     the Corporation has recorded a gain on the settlement of the obligation of
     $2,299,674.
(3)      Under US GAAP, mandatorily redeemable convertible preferred shares are
     recorded as mezzanine financing at their fair value on the date of issue
     and excluded from both shareholders' equity and long-term debt. Dividends
     are accumulated on these shares at the average dividend rate and this
     amount, together with the amount necessary to accrete the fair value to the
     redemption price on maturity, are charged to accumulated deficit. Under
     Canadian GAAP these shares are treated as

<PAGE>

WORLD HEART CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2003
--------------------------------------------------------------------------------

     compound instruments and divided into their debt and equity components
     based on their fair value at the time of issue and dividends and imputed
     interest related to the debt component are charged to earnings. The
     different presentation on the balance sheets results in a difference in
     exchange as, under Canadian GAAP the amount in shareholders' equity is
     translated at historical rates and the amount in long-term debt is
     translated at current rates. Under US GAAP, the full amount is translated
     at current rates. Under Canadian and US GAAP the amount recorded for the
     preferred shares is transferred to common shares upon conversion. Under
     Canadian GAAP this amounted to $68,491,452 and under US GAAP this amounted
     to $66,984,486
(4)      Under US GAAP, the difference between the issue price and initial
     public offering (IPO) price of shares issued within a one-year period prior
     to the IPO is generally accounted for as an expense and charged against
     earnings for the period with a corresponding and equal amount recorded as
     paid-in capital. This difference of $48,663,150 increases the common shares
     and accumulated deficit reported under US GAAP, with no difference reported
     in total shareholders' equity.

(d)  New accounting pronouncements

In December 2001, the CICA issued AcG 13 - "Hedging Relationships" ("AcG 13").
The guideline presents the views of the Canadian Accounting Standards Board on
the identification, designation, documentation and effectiveness of hedging
relationships, for the purpose of applying hedge accounting. The guideline is
effective for all fiscal years beginning on or after July 1, 2003, which is the
fiscal year beginning January 1, 2004 for the Corporation. The Corporation does
not believe that the adoption of this guideline will have a material impact on
its results of operations or financial position as it does not currently apply
hedge accounting.

In December 2002, the CICA issued CICA 3063 - "Impairment of long-lived assets"
("CICA 3063"). This section establishes standards for the recognition,
measurement and disclosure of the impairment of long-lived assets. The
Recommendations in this Section should be applied prospectively for years
beginning on or after April 1, 2003, which is the fiscal year beginning January
1, 2004 for the Corporation, with earlier application encouraged.

<PAGE>

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

INTRODUCTION

World Heart Corporation and its subsidiaries are collectively referred to as
"WorldHeart" or the "Corporation". The following discussion is an update of
management's discussion and analysis for the year ended December 31, 2002, and
includes a discussion of the results of operations and cashflows for the three
and nine months ended September 30, 2003. Such discussion and comments on the
liquidity and capital resources of the Corporation should be read in conjunction
with the information contained in the consolidated financial statements and
related notes to the financial statements of the Corporation. In this
discussion, references to "dollars" or "$" or "Cdn $" are to Canadian dollars
and references to "US dollars" or "US$" are to United States dollars.

The discussion and comments contained hereunder include both historical
information and forward-looking information. The forward-looking information,
which generally is information stated to be anticipated, expected, or projected
by the Corporation, involves known and unknown risks, uncertainties and other
factors that may cause the actual results and performance of the Corporation to
be materially different from any future results and performance expressed or
implied by such forward-looking information. Potential risks and uncertainties
include, without limitation, the uncertainties inherent in the development of
new products for use in the human body, the Corporation's need to establish
reimbursement mechanisms and product acceptance from third-party payers,
extensive government regulation of the Corporation's products, and rapid
developments in technology, including developments by competitors.

OVERVIEW

WorldHeart is a medical device company currently focused on the development and
commercialization of implantable pulsatile ventricular assist devices through
operations in Oakland, California, United States and Ottawa, Ontario, Canada.
WorldHeart is currently focused on two technologies, Novacor(R) LVAS (Novacor
LVAS) and HeartSaverVAD(TM) (HeartSaver).

The HeartSaver program originated within WorldHeart in 1996 from licensed
artificial heart and related technologies developed by the Cardiovascular
Devices Division (CVD) of the Ottawa Heart Institute Research Corporation. On
June 30, 2000, the Corporation, through World Heart Inc., a wholly owned
subsidiary of World Heart Corporation, acquired the business, including assets
and liabilities, of Edwards Novacor LLC (Novacor) from Edwards Lifesciences LLC
(Edwards). As a result of the acquisition, WorldHeart manufactures and
distributes the Novacor LVAS and is developing a next generation product which
retains the name HeartSaverVAD but which is based on technologies acquired as
part of the Novacor program. The Corporation currently sells the Novacor LVAS
internationally through Edwards, with the exception of the United States where
the Corporation sells directly. Prior to the acquisition, the Corporation had no
commercial sales.

The Corporation's most significant development during the third quarter of 2003
was its ability to complete a major recapitalization and restructuring of its
operations which included:

     o    a $63,200,000 private placement of equities;

<PAGE>

     o    an agreement by Edwards to exchange US$78,000,000 of preferred shares
          into common shares and warrants of WorldHeart;

     o    the execution of a note purchase agreement with Export Development
          Canada (EDC) to assist the Corporation in its export marketing
          activities in the United States by financing customer sales;

     o    the buy-out of a royalty agreement relating to sales of the Novacor
          LVAS eliminating a four percent royalty on all future Novacor and
          related equipment sales;

     o    the elimination of 32 positions, which represented 24% of the
          Corporation's workforce, in connection with a continued streamline of
          operations consistent with the Corporation's strategy of focusing on
          its Novacor LVAS commercial operations; and

     o    a restructuring of the Corporation's board of directors.

This builds upon key developments that had occurred during the first six months
of the year and which included:

     o    approval of the Corporation's ePTFE enhanced inflow conduit, which
          leads blood from the heart to the heart assist device, for use in the
          U.S. by the Food and Drug Administration (FDA) and for use in Canada
          by Health Canada;

     o    submission of a PMA Supplement to the FDA in the United States and a
          submission to Health Canada in Canada seeking approval for
          enhancements to its Novacor(R) LVAS (left ventricular assist system)
          in both countries; and

     o    submission of an amended PMA Supplement seeking FDA approval for the
          use of the Novacor LVAS under its current bridge-to-transplant
          indication by certain patients who are not candidates for
          transplantation at the time of implant.

<PAGE>

RESULTS OF OPERATIONS FOR THE THREE-MONTH PERIOD ENDED
SEPTEMBER 30, 2003 COMPARED TO THE THREE-MONTH PERIOD ENDED
SEPTEMBER 30, 2002

All financial information is prepared in accordance with generally accepted
accounting principles (GAAP) in Canada and is stated in Canadian dollars. The
unaudited consolidated financial statements for the three and nine-month periods
ended September 30, 2003 include a reconciliation to US GAAP under note 12.

Consolidated results of operations
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
                                                Three months   As a %             Three months    As a %
                                        ended September  30,   of gross     ended September 30,   of gross
                                                        2003   revenue                    2002    revenue
----------------------------------------------------------------------------------------------------------
<S>                                              <C>           <C>                <C>            <C>
Revenue                                          $ 2,834,210                      $ 3,049,036
                                      --------------------------------------------------------------------

Cost of goods sold
  Direct materials and labour                     (1,065,348)    37.6%             (1,312,400)    43.0%
  Overhead and other                              (1,244,799)    43.9%             (1,863,976)    61.2%
                                      --------------------------------------------------------------------

                                                  (2,310,147)    81.5%             (3,176,376)   104.2%
                                      --------------------------------------------------------------------

Gross margin                                         524,063     18.5%               (127,340)    (4.2%)

Selling, general and administrative               (2,561,308)                      (2,509,496)
Research and development                          (3,149,253)                      (4,947,218)
Restructuring costs                               (2,848,007)                                -
Amortization of intangibles                         (168,965)                      (1,830,626)
Foreign exchange gain (loss)                        (440,135)                      (3,044,699)
Investment income                                      9,918                            1,588
Interest and financing costs                      (4,475,963)                      (1,905,699)
                                      -----------------------------------------------------------------

Net loss                                       $ (13,109,650)                   $ (14,363,490)
=======================================================================================================
</TABLE>

Revenues.  WorldHeart sells its products through a direct sales force in the
United States and through its distributor, Edwards, outside the United States.
The Novacor LVAS and related equipment account for all of WorldHeart's product
sales.

Revenues from sales of the Novacor LVAS and related equipment occur in US
dollars from the Corporation's subsidiary in Oakland, California. Revenues
increased from US$1,948,712 in the third quarter of 2002 to US$2,111,877 in the
current quarter, which represented an increase of 8.4%. However, due to a
significant strengthening in the Corporation's reporting currency, the Canadian
dollar, from the third quarter of 2002 consolidated Canadian dollar revenues
have decreased by 7.1% from the third quarter of 2002 to $2,834,210.

The Corporation sold 27 implant kits in the third quarter of 2003 as compared to
32 in the third quarter of 2002. Although the unit sales decreased in the
quarter compared to the same quarter last year the implant kit revenues
increased nominally due to the geographic sales mix with 17 kits sold in the
United States in the third quarter of 2003 as compared to 9 in the third quarter
of

<PAGE>

2002. In the US WorldHeart's selling prices are significantly higher because
the Corporation sells directly to hospitals as opposed to non-US sales where the
Corporation sells through it's distributor Edwards at a discounted price. This
increase was partially offset by a decrease in unit sales outside of the US.
from 23 kits in the third quarter of 2002 to 10 kits in the current quarter.
Hardware sales also increased by 21.2% in the quarter compared to the same
quarter last year.

In its distribution agreement with Edwards, WorldHeart is required to pay a
minimum gross margin guarantee in the event that Edwards' gross margin generated
on the sales of WorldHeart's products are below US$2,000,000 annually. The
guarantee shortfall is accounted for as a reduction of revenues. There were no
amounts offset against revenues relating to this guarantee for the three months
ended September 30, 2003 or 2002.

Cost of goods sold.  For the third quarter of 2003 the overall cost of sales
decreased to 81.5% of gross sales as compared to 104.2% of sales in the third
quarter of 2002.

Direct material and labour costs were $1,065,348 or 37.6% of gross sales for the
third quarter of 2003 as compared to $1,312,400 or 43.0% for the same period in
2002. The decrease is the result of the previously addressed geographic sales
mix with a higher proportion being sold in the US as compared to Europe and the
rest of the world in the third quarter of 2003 versus the third quarter of 2002
as well as the Corporation's continuing effort to refine it's manufacturing
processes in order to realize significant Novacor LVAS manufacturing cost
reductions.

Overhead and other costs include direct overhead costs, indirect overhead
allocations and royalties. For the quarter ended September 30, 2003 overhead and
other costs totaled $1,244,799 or 43.9% of sales as compared to $1,863,976 or
61.2% of sales for the third quarter of 2002. The decrease was due to managed
reductions in indirect manufacturing support costs and direct manufacturing
overheads.

The improvement in gross margin for the quarter as compared with the same
quarter in 2002 is expected to continue as the Corporation continues it's
manufacturing cost reduction program and as sales volumes of the Novacor LVAS
increase.

Selling, general and administrative.  Selling, general and administrative
expenses consist primarily of payroll and related expenses for executives,
sales, marketing, accounting and administrative personnel, professional fees,
communications, promotional activities, costs associated with meeting
multi-jurisdictional regulatory requirements, insurance, occupancy and other
general corporate expenses.

Selling, general and administrative expenses for the three-month period ended
September 30, 2003 remained relatively constant increasing by $51,812 or 2.1%
from the same period in 2002. Higher insurance and employee costs have been
offset be general reductions in other expenses.

Research and development. Research and development expenses consist principally
of payroll and related expenses for development staff, prototype manufacturing,
testing, and configuration of equipment, trial expenses, regulatory affairs and
quality control with respect to prototype development.

<PAGE>

Research and development costs in the third quarter of 2003 were $3,149,253, or
36.3% lower than the third quarter of 2002. Excluding the impact of government
assistance, gross research and development expenses decreased by 40.7% to
$3,918,299 in the quarter as compared to $6,608,577 in the third quarter of
2002.
<TABLE>
<CAPTION>
     =======================================================================================
                                                      Three Months Ended
                                                      --------------------------------------
                                                        September 30,         September 30,
                                                                 2003                  2002
     ---------------------------------------------------------------------------------------
     <S>                                           <C>                   <C>
     Gross research and development expenses       $        3,918,299    $        6,608,577
     Government assistance                                   (769,046)           (1,661,359)
                                                   -----------------------------------------
     Net research and development expenses         $        3,149,253    $        4,947,218
     =======================================================================================
</TABLE>

Lower research and development costs in the quarter as compared to the same
period in 2002 are on account of year-over-year expense reductions associated
with the merged HeartSaver development program and as a result of no implants
associated with pre-clinical and clinical trials during the quarter.

WorldHeart has continued to reduce HeartSaver development costs as the
Corporation continues to focus on Novacor LVAS commercial operations. This
process commenced in the third-quarter of 2002 when three HeartSaver development
programs were consolidated and has continued through the third quarter of 2003.

In the third quarter of 2002, the Corporation was conducting active clinical
trials (Novacor LVAS INTrEPID) and pre-clinical HeartSaver VAD trials. The
HeartSaver trials were terminated in the third quarter of 2002 when the decision
was made to consolidate the three HeartSaver development programs. The INTrEPID
trial commenced in 2000 to support the use of the Novacor LVAS as an alternative
to medical therapy. INTrEPID trial costs were lower in the third quarter of 2003
as compared to the third quarter of 2002 as the Corporation has completed the
costly implantation phase of the trial.

The government assistance in the quarter ended September 30, 2003 relates to
amounts claimed under the federal government Technology Partnerships Canada
(TPC) program. The amounts claimed in the quarter ended September 2003 decreased
by 53.7% to $769,046 from the same period in 2002. The amounts claimed relate to
reimbursement of expenditures relative to the HeartSaver development program and
are lower in the third quarter of 2003 due to the reduced level of expenditures
in the quarter as compared to the third quarter of 2002.

Restructuring costs.  On September 23, 2003, the Corporation realigned its
business operations to focus on commercial operations and to reduce research and
development costs. WorldHeart will continue to emphasize Novacor LVAS sales and
marketing and the manufacturing cost reduction program while continuing to
reduce the rate of expenditure associated with the development of the
next-generation HeartSaverVAD. As part of this initiative the company eliminated
32 positions, which amounts to a 24% reduction in headcount.

Total restructuring costs to the end of the third quarter amount to $2,848,007.
These relate to employee severance and termination costs of $1,392,950, costs
related to the buyout of a Novacor LVAS royalty agreement of $1,421,670 and
other miscellaneous costs. The royalty buy-out will eliminate royalty payment
obligations going forward of 4% of Novacor LVAS sales.

<PAGE>

Amortization of intangibles.  Amortization of intangibles during the third
quarter of 2003 amounted to $168,965 as compared to $1,830,626 for the third
quarter of 2002. Most of these intangible assets arose from the purchase of
Novacor from Edwards in June 2000. Although most of the assets have value beyond
June 2003, at the time acquisition was made it was anticipated that the
HeartSaver VAD would replace the Novacor product within the three-year timeframe
and as a result were amortized over a three-year period concluding in June 2003.

Foreign exchange gains and losses.  WorldHeart recorded a foreign exchange loss
of $440,135 in the third quarter of 2003 as compared to a loss of $3,044,699 in
the third quarter of 2002. Certain balance sheet items are denominated in
foreign currencies (predominantly the US dollar). Foreign exchange gains and
losses arise when the value of the Canadian dollar changes relative to the value
of these foreign currencies. The majority of the foreign exchange gains and
losses can be attributed to the Corporation's preferred shares, which are
denominated in US dollars. During the third quarter of 2003 the Canadian dollar
weakened nominally (by approximately 0.2%) versus the US dollar compared with a
more significant weakening (approximately 4.7%) in the third quarter of 2002.

Investment income.  Interest income primarily represents interest earned by the
Corporation on its cash equivalents and short-term investments. The interest
during the quarter was nominal as the Corporation did not have excess funds to
invest until after the completion of the financing late in the third quarter of
2003.

Interest expense and financing costs.  Interest expense and financing costs
consist primarily of non-cash interest on preferred shares and the costs
associated with debt financing transactions entered into during 2003.

The preferred shares are being accounted for in accordance with their substance
and are presented in the financial statements according to their debt and equity
components measured at their respective fair values at the time of issue. The
debt components have been calculated as the present value of the interest
payments discounted at 12%, approximating the interest rate that would have been
applicable to non-convertible debt at the time the preferred shares were issued.
Interest expense is determined on the debt component as the amount necessary to
increase the debt component to its face amount plus accumulated dividends at
maturity. Total non-cash interest expense on the preferred shares for the
quarter ended September 30, 2003 was $1,793,100, the amount for the same period
in 2002 was $1,905,699. During the quarter the US$58,000,000 redeemable,
cumulative participating Series A preferred shares were exchanged by Edwards for
4,981,128 common shares of WorldHeart. Also during the quarter Edwards
Lifesciences (U.S.) Inc. agreed, subject to shareholders' approval, to exchange
the US$20,000,000 redeemable, convertible preferred shares for 3,500,000
WorldHeart common shares and 7,000,000 warrants. This exchange is expected to be
approved and occur during the fourth quarter of 2003.

Other interest and financing costs during the quarter totaled $2,682,863. This
included interest, fees and other costs associated with loans that the
Corporation entered into in order to allow the Corporation to meet its cash
requirements until an equity transaction could be completed. Interest expenses
totaled $920,393 legal fees and other costs associated with the debt
transactions amounted to $310,453 and the non-cash expensing of warrants that
were provided to the debt issuers as a component of the terms of the loans was
$1,452,017.

<PAGE>

RESULTS OF OPERATIONS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER
30, 2003 COMPARED TO THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2002

All financial information is prepared in accordance with generally accepted
accounting principles (GAAP) in Canada and is stated in Canadian dollars. The
unaudited consolidated financial statements for the three and nine-month periods
ended September 30, 2003 include a reconciliation to US GAAP under note 12.

Consolidated results of operations
<TABLE>
<CAPTION>
=============================================================================================================
                                                     Nine months   As a %              Nine months   As a %
                                             ended September 30,   of gross     ended September 30,  of gross
                                                            2003   revenue                    2002   revenue
-------------------------------------------------------------------------------------------------------------
<S>                                                  <C>           <C>                <C>            <C>
Revenue
  Gross revenue                                      $ 8,707,987                      $ 8,539,433
  Less: Edwards guarantee fee                                  -        -                (348,149)    4.1%
                                        ---------------------------------------------------------------------
  Net revenue                                          8,707,987   100.0%               8,191,284    95.9%
Cost of goods sold
  Direct materials and labour                         (3,877,316)   44.5%              (3,538,033)   41.4%
  Overhead and other                                  (3,162,749)   36.3%              (5,039,167)   59.0%
                                        ---------------------------------------------------------------------
                                                      (7,040,065)   80.8%              (8,577,200)  100.4%
                                        ---------------------------------------------------------------------

Gross margin                                           1,667,922    19.2%                (385,916)  (4.6%)

Selling, general and administrative                   (7,531,979)                      (7,798,349)
Research and development                             (12,212,634)                     (18,231,685)
Restructuring costs                                   (2,848,007)                               -
Amortization of intangibles                           (3,830,217)                      (5,491,878)
Foreign exchange gain (loss)                          10,775,320                          101,274
Investment income (expense)                               (7,989)                         128,312
Interest and financing expenses                      (11,755,946)                      (5,688,091)
                                        ---------------------------------------------------------------------

Net loss                                          $  (25,743,530)                   $ (37,366,333)
=============================================================================================================
</TABLE>

Revenues.  WorldHeart sells its products through a direct sales force in the
United States and through its distributor, Edwards, outside the United States.
The Novacor LVAS and related equipment account for all of WorldHeart's product
sales.

Revenues from sales of the Novacor LVAS and related equipment occur in US
dollars from the Corporation's subsidiary in Oakland, California. During the
nine-month period ended September 30, 2003 the Corporation generated gross
revenues of US$6,148,740 compared to US$5,446,758 for the same nine-month period
in 2002, which represented an increase of 12.9%. However, due to a significant
strengthening in the Corporation's reporting currency, the Canadian dollar, for
the nine-months ending September 30, 2003 the consolidated Canadian dollar gross
revenues have increased by 2.0% to $8,707,987 from gross revenues for the same
period in 2002.

Implant kit unit sales for the nine-months ended September 30, 2003 totaled
93 as compared to 82 for the same period in 2002. US sales totaled 35 kits for
the first nine months of 2003 compared to 33 kits for 2002. Sales outside of the
US totaled 58 kits to the end of the third quarter of 2003

<PAGE>

compared to 49 kits in the same period in 2002. Hardware and related equipment
sales also increased by 36.4% during the nine-month period ended September 30,
2003 as compared to the same period in 2002.

In its distribution agreement with Edwards, WorldHeart is required to pay a
minimum gross margin guarantee in the event that Edwards' gross margin generated
on the sales of WorldHeart's products are below US$2,000,000 annually. The
guarantee shortfall is accounted for as a reduction of revenues. The revenues
for the nine-month period ended last September 30, 2002 of $8,539,433 were
offset by $348,149 relating to the minimum gross margin guarantee. For 2003 no
guarantee fee has been recorded as management has estimated that sales volumes
are sufficient to satisfy the minimum guarantee.

Cost of goods sold.  For the first nine months of 2003 the overall cost of sales
decreased to 80.8% of gross sales as compared to 100.4% in the first nine months
of 2002.

Direct material and labour costs were $3,877,316 or 44.5% of gross sales for the
first nine months of 2003 as compared to $3,538,033 or 41.4% for the same period
in 2002. These costs were proportionately higher in the first nine-months of
2003 due to the geographic sales mix with a higher proportion of sales through
the Corporation's European distributor at average selling prices which are at a
discount to US selling prices and also reflected higher ancillary equipment
sales where direct material costs are a higher proportion of the total cost than
for the Novacor LVAS. Partially offsetting these was lower per unit costs
associated with continued refinements that the Corporation is making to it's
manufacturing processes in order to realize significant reductions in Novacor
LVAS costs of goods sold.

Overhead and other costs include direct overhead costs, indirect overhead
allocations and royalties. For the nine months ended September 30, 2003 overhead
and other costs totaled $3,162,749 or 36.3% of sales as compared to $5,039,167
or 59.0% of sales for the first nine months of 2002. The decrease was due to
managed reductions in indirect manufacturing support costs and direct
manufacturing overheads.

The improvement in gross margin for the nine-month period ended September 30,
2003 as compared with the same period in 2002 is expected to continue as the
Corporation continues it's manufacturing cost reduction program and as sales
volumes of the Novacor LVAS increase.

Selling, general and administrative.  Selling, general and administrative
expenses consist primarily of payroll and related expenses for executives,
sales, marketing, accounting and administrative personnel, professional fees,
communications, promotional activities, costs associated with meeting
multi-jurisdictional regulatory requirements, insurance, occupancy and other
general corporate expenses.

Selling, general and administrative expenses for the nine month period ended
September 30, 2003 decreased by $266,370 or 3.4% from the same period in 2002.
The decrease was the result of reduced administrative, finance and executive
costs resulting from company-wide efforts to reduce overhead and support costs.

Marketing expenditures also decreased nominally during the nine-month period
ended September 30, 2003 as compared to the same period in 2002 as the
Corporation took measures to minimize discretionary spending and deferred new
initiatives until a capital transaction was completed.

<PAGE>

Research and development.  Research and development expenses consist principally
of payroll and related expenses for development staff, prototype manufacturing,
testing, and configuration of equipment, trial expenses, regulatory affairs and
quality control with respect to prototype development.

Gross research and development expenses, excluding the impact of government
assistance, decreased by $9,130,632 or 40.2% to $13,568,344 in the first nine
months of 2003 as compared to $22,698,976 in the first nine months of 2002. Net
research and development costs for the nine months ended September 30, 2003 were
$6,019,051 or 33.0%, lower than the first nine months of 2002.
<TABLE>
<CAPTION>
     ------------------------------------------------------------------------------------------
                                                         Nine Months Ended
                                                         --------------------------------------
                                                           September 30,         September 30,
                                                                    2003                  2002
     ------------------------------------------------------------------------------------------
     <S>                                              <C>                   <C>
     Gross research and development expenses          $       13,568,344    $       22,698,976
          Government assistance:
               Federal program                                (3,025,710)           (4,467,291)
               Provincial program reserve                      1,670,000                     -
                                                    -------------------------------------------
     Net research and development expenses            $       12,212,634    $       18,231,685
     ------------------------------------------------------------------------------------------
</TABLE>

Lower research and development costs in the nine month period ended September
30, 2003 as compared to the same period in 2002 are on account of year-over-year
expense reductions associated with the merged HeartSaver development program and
as a result of no clinical trial activity for the year-to-date and significantly
reduced clinical trial activity compared to 2002.

WorldHeart has continued to reduce HeartSaver development costs as the
Corporation continues to focus on Novacor LVAS commercial operations. This
process commenced in the third quarter of 2002 when the three HeartSaver
development programs were consolidated and has continued through the third
quarter of 2003.

The Corporation continued active implants under its Novacor LVAS clinical trial
(INTrEPID) throughout all of 2002 and into the first quarter of 2003. In
addition, the HeartSaver pre-clinical trials were terminated in the third
quarter of 2002 and there were no HeartSaver trial activity through the first
nine months of 2003. This lower trial activity has resulted in significantly
lower trial costs for the nine months ended September 30, 2003 as compared to
the same period in 2002.

During 2002, the consolidated HeartSaver program and change in the scope
necessitated an amendment to the federal government TPC contribution agreement.
On May 21, 2003, TPC approved this amendment allowing the Corporation to claim
eligible expenditures for reimbursement against the final $3 million of funding
available under the $9.98 million contribution agreement. As a result, during
the first nine months of 2003, the Corporation claimed reimbursement for
expenditures from October 2002 through September 2003 amounting to $3,025,710.
As part of the amendment to the agreement, the royalty rate payable to TPC was
reduced to 0.65% and is to be calculated on the consolidated revenues of the
Corporation commencing January 1, 2004.

The Corporation had previously recorded tax credit receivables related to the
provincial Ontario Business Research Institute tax credit program in the amount
of $2,770,000 based on an advanced ruling from the Ontario Government's Ministry
of Finance (Ministry of Finance). The Corporation's claim was subsequently
audited by the Ministry of Finance and the Ministry has

<PAGE>

now issued a preliminary audit assessment proposing to reduce the amount
claimed. Although management believes that the Corporation is eligible to
receive the amounts that were claimed and is pursuing the claims a provision was
recorded in the first quarter of 2003 in the amount of approximately $1,670,000
reducing the accrued amount receivable to $1,100,000 which represents
management's best estimate of the amounts which would be collectible under the
proposed assessment. This provision was recorded as a research and development
expense. During September 2003, the Corporation received $718,241 of the
$1,100,000 from the provincial government.

Restructuring costs.  On September 23, 2003, the Corporation realigned its
business operations to focus on commercial operations and to reduce research and
development costs. WorldHeart will continue to emphasize Novacor LVAS sales and
marketing and the manufacturing cost reduction program while continuing to
reduce the rate of expenditure associated with the development of the next
generation HeartSaver VAD. As part of this initiative the company eliminated 32
positions in the third quarter, which amounts to a 24% reduction in headcount.

Total restructuring costs to the end of the third quarter of 2003 amount to
$2,848,007. These relate to employee severance and termination costs of
$1,392,950, costs related to the buyout of a Novacor LVAS royalty agreement of
$1,421,670 and other miscellaneous costs. The Novacor LVAS buy-out will
eliminate royalty payment obligations going forward of 4% of Novacor LVAS sales.

Amortization of intangibles.  Amortization of intangibles for the nine-month
period ended September 30, 2003 amounted to $3,830,217 as compared to $5,491,878
for the same period in 2002. Most of these intangible assets arose from the
purchase of Novacor from in June 2000. Although most of the assets have value
beyond June 2003, at the time acquisition was made it was anticipated that the
HeartSaver VAD would replace the Novacor product within a three-year timeframe
and as a result were amortized over a three-year period concluding in June 2003.

Foreign exchange gains and losses.  WorldHeart recorded a foreign exchange gain
of $10,775,320 in the first nine months of 2003 as compared with a gain of
$101,274 in the first nine months of 2002. Certain balance sheet items are
denominated in foreign currencies (predominantly the U.S. dollar). Foreign
exchange gains and losses arise when the value of the Canadian dollar changes
relative to the value of these foreign currencies. The majority of the foreign
exchange gains and losses can be attributed to the Corporation's preferred
shares, which are denominated in U.S. dollars. During the first nine months of
2003 the Canadian dollar strengthened by approximately 14.4% versus the US
dollar compared with 0.4% in the first nine months of 2002.

Investment income.  Interest income primarily represents interest earned by the
Corporation on its cash equivalents and short-term investments. The Corporation
has not generated material investment income for the first nine months of 2003
as it has not had excess funds to invest until after the completion of the
equity financing late in the third quarter of 2003.

Interest expense and financing costs.  Interest expense and financing costs
consist of non-cash interest on preferred shares and the costs associated with
debt financing transactions entered into during the first nine months of 2003.

The preferred shares are being accounted for in accordance with their substance
and are presented in the financial statements according to their debt and equity
components measured at their respective fair values at the time of issue. The
debt components have been calculated as the

<PAGE>

present value of the interest payments discounted at 12%, approximating the
interest rate that would have been applicable to non-convertible debt at the
time the preferred shares were issued. Interest expense is determined on the
debt component as the amount necessary to increase the debt component to its
face amount plus accumulated dividends at maturity. Total non-cash interest
expense on the preferred shares for the first nine months of 2003 was
$5,588,189, the amount for the same period in 2002 was $5,688,091. During the
third quarter of 2003 the US$58,000,000 redeemable, cumulative, participating
Series A preferred shares were exchanged by Edwards for 4,981,128 common shares
of WorldHeart. Also during the third quarter of 2003 Edwards Lifesciences (U.S.)
Inc. agreed, subject to shareholders' approval, to exchange the US$20,000,000
redeemable, convertible preferred shares for 3,500,000 WorldHeart common shares
and 3,500,000 warrants. This exchange is expected to be approved and occur
during the fourth quarter of 2003.

Other interest and financing expenses in the first nine months of 2003 totaled
$6,167,757, there were not corresponding expenses for the same period in 2002.
The increase was on account of interest, fees and other costs associated with
loans that the Corporation entered into in 2003 in order to allow the
Corporation to meet its cash requirements until and equity transaction could be
completed. Interest expenses totaled $1,713,237, financing costs including legal
fees and other costs associated with the debt transactions amounted to $876,836
and the non-cash expensing of warrants that were provided to the debt issuers as
a component of the terms of the loans was $3,577,684.


LIQUIDITY AND CAPITAL RESOURCES

WorldHeart ended the third quarter of 2003 with cash of $35,233,713 and has
repaid all loans and, either repaid or has an agreement to convert, all
preferred share obligations that were outstanding. WorldHeart continues to incur
financial losses which are expected to continue into 2004.

Financing transactions.  On September 23, 2003, the Corporation completed a
private placement of 74,699,458 Units in the United States and Canada at $0.85
and US$0.62 per Unit, for total gross proceeds of $63,164,608 (issue costs were
$5,965,163). Each Unit consisted of one common share and one common share
purchase warrant. Each warrant may be exercised at any time prior to September
22, 2008 at a price of $1.15 per share, subject to adjustment. The warrants are
callable by the Corporation for cash exercise, at any time, the WorldHeart
common shares trade at $2.50 (prior to any share splits) for 20 consecutive
trading days, however, no more than 20% of the total Warrant issue may be called
in any three-month period. The Corporation granted, to the agents of the private
placement, 7,030,355 agents' warrants. The terms of the agents' warrants are
substantially the same as the Warrants issued as part of the underlying
transaction.

On September 22, 2003 the Corporation completed the exchange of US$58,000,000 of
preferred shares of World Heart Inc., a subsidiary of WorldHeart, held by
Edwards Lifesciences LLC, for a total of 4,981,128 WorldHeart common shares.
These Series A shares were non-voting with dividends accumulating at 4% per year
on the subscription price of US$58.0 million for the first two years, 3% for the
third year and at 6% per year thereafter until maturity on June 30, 2015 at
which time they were mandatorily redeemable for the face amount of US$58.0
million plus accumulated dividends (effective July 1, 2002 the rates were
reduced by 1% for the period July 1, 2002 through June 30, 2015). These
preferred shares were accounted for in accordance with their substance and
presented in the financial statements in their debt and equity components. Prior
to

<PAGE>

the exchange the debt and equity components were $40,389,920 and $28,101,532
respectively. As a result of this transaction common share equity increased by
$68,491,452 and the number of common shares outstanding increased by 4,981,128.

On September 22, 2003, the Corporation also entered into a Conversion Agreement
with Edwards Lifesciences (U.S.) Inc. that provides that, subject to shareholder
approval, WorldHeart will acquire for cancellation the 1,374,570 redeemable
convertible preferred shares of WorldHeart held by Edwards Lifesciences (U.S.)
Inc. by issuing to Edwards Lifesciences (U.S.) Inc. upon the conversion of those
shares, 3,500,000 common shares of WorldHeart and 7,000,000 warrants, each
exercisable for one common share of WorldHeart. Shareholder approval for the
transaction will be sought on November 25, 2003 at a special meeting of the
shareholders of WorldHeart.

On September 4, 2003 the Corporation entered into a bridge loan agreement
totaling $1,052,000. The bridge loan originally matured at the earlier of the
completion of a private placement or October 22, 2003 and bore interest at a
rate of 14% per annum payable monthly. The Corporation paid to the lender a fee
of 4% and issued a total of 830,000 common share purchase warrants each
exercisable into one common share at a price of $1.20 until October 31, 2006.
Costs associated with this debt included financing costs, non-cash option
expense and interest expense, these amounted to $35,280, $436,966 and $6,428
respectively. These loans were repaid in full from the proceeds of the September
23, 2003 private placement.

On July 30, 2003, the Corporation issued senior subordinated convertible
debentures for gross proceeds of $1,200,000. The debentures, had a maturity of
October 22, 2003, and were convertible at the holder's option into common shares
of the corporation for $1.00 per share. The debentures were callable by the
Corporation at any time after September 15, 2003 upon payment of the outstanding
principal amount plus accrued but unpaid interest, subject to the holders having
five days in which to convert. The debentures carried interest of 14% per annum.
In addition warrants to purchase 1,200,000 common shares, at an exercise price
of $1.20 per share, for a period of three years were issued to the debenture
holders. Costs associated with this debt included financing costs, non-cash
option expense and interest expense, these amounted to $110,581, $605,051 and
$26,235 respectively. These loans were repaid in full from the proceeds of the
September 23, 2003 private placement.

On April 2, 2003, the Corporation issued 1,000,000 common shares at a price of
$1.60 per share for gross proceeds of $1,600,000 pursuant to the exercise of
previously issued warrants with an expiry date of January 2, 2008. As
compensation for the early exercise of the warrants an additional 1,760,000
warrants were issued. These warrants are exercisable into common shares of the
Corporation at $1.60 per share until April 2, 2008.

In January 2003, WorldHeart completed a private placement for gross proceeds of
$3,000,000 ($2,615,272 net of costs and fees). The private placement included
2,343,750 units at a price of $1.28 per unit. Each unit was comprised of one
WorldHeart common share and one warrant to purchase a common share of WorldHeart
for a period of five years at $1.60 per share. In addition, a total of 234,374
warrants were also granted to the placement agent. Each warrant is exercisable
at a price of $1.60 into one WorldHeart common share and one compensation
warrant at any time prior to December 31, 2004. Each compensation warrant is
exercisable at a price of $1.60 into one WorldHeart common share at any time
prior to the end of fiscal 2007.

Also in January 2003, WorldHeart completed a debt financing totaling $10
million. The debt consisted of a $7,000,000 senior loan and a $3,000,000
subordinated loan. The loans originally matured on July 31, 2003 and bore an
annual interest rate of 18% payable monthly (the loan

<PAGE>

maturity dates were subsequently extended to August 15 and then to September
23). The lenders were paid a fee equal to 4% of the gross loan amounts and also
received a total of 3,000,000 warrants, each exercisable into one WorldHeart
common share for a period of five years at a price of $1.60 per share. As
collateral for the loans the Corporation provided general security agreements
over all of its assets. Of the above noted debt proceeds $2 million plus accrued
interest was used to settle a short-term loan entered into in December 2002.
Costs associated with this debt included financing costs, non-cash option
expense and interest expense, these amounted to $564,237, $2,431,000 and
$1,640,767 respectively. These loans were repaid in full from the proceeds of
the September 23, 2003 private placement.

Liquidity. At September 30, 2003 the Corporation had cash of $35,233,713 working
capital of $31,479,356 as compared to cash of $248,181 and a working capital
deficiency of $8,052,555 at December 31, 2002.

The increase in cash and improvement in the working capital position is the
result of the funds received from the September 23, 2003 private placement.
These funds were used to repay all of the Corporation's loans, bring trade
payables into acceptable terms, fund restructuring costs with the balance
remaining at the end of the third quarter of 2003 available to fund future
operations.

Cash totaling approximately $712,743 remains pledged against a US$527,997 letter
of credit issued by WorldHeart in support of the Corporation's obligations under
its Oakland, California premises leases and is not available for general
operations. During the nine-month period there were draws of $303,926 to settle
monthly rent and other amounts due under the lease.

OUTLOOK
External environment. The market for effective pharmacological, electro-
physiological or device treatments for late-stage heart failure has not
diminished, and despite significant progress on many fronts, no competitive
breakthroughs have been announced, or are believed to be imminent. The scope of
heart failure is similarly undiminished and is, if anything, increasing as a
result of both population demographic trends, and also as a response to the
increasing number of survivors from sudden cardiac events, many of who
subsequently develop congestive heart failure. The Corporation believes the
potential market for its heart assist devices continues to be at least 100,000
patients per annum in North America, Europe, Japan and certain other countries.

There is growing evidence of increasing clinical acceptance of the use of
mechanical circulatory assist therapies in the treatment of late stage heart
failure and effective as of October 1, 2003, the Centers for Medicare and
Medicaid Services in the U.S. have issued a National Coverage Decision
announcing the extension of reimbursement coverage for both bridge and
destination therapy LVAD use. These developments are expected to accelerate the
use of ventricular assist devices both in the U.S. and elsewhere.

Internal environment. The Corporation expects to incur further losses from
operations into 2004 as the Corporation continues to fund the next-generation
HeartSaver VAD program and increases marketing expenses associated with the
promotion of its Novacor LVAS in response to both recently received, and
anticipated regulatory approvals. These cost increases will potentially be
offset by increased net contributions from continuing higher Novacor LVAS sales.

<PAGE>

                                    WORLDHEART
                               EXECUTIVE COMMITTEE

         Roderick M. Bryden                         Doug Hillier
         President and                              Senior Vice-President
         Chief Executive Officer                    Sales and Marketing

         Mark Goudie                                Jal S. Jassawalla
         Vice-President Finance and                 Executive Vice-President and
         Chief Financial Officer                    Chief Technical Officer

         Daniela (Dani) Kennedy                     Robert Griffin
         Vice-President                             Vice-President
         Corporate Services                         Manufacturing




--------------------------------------------------------------------------------


                        WORLDHEART'S TECHNOLOGY PLATFORM

   NOVACOR(R)LVAS (Caution: in the United States, federal law restricts the
Novacor(R)LVAS to sale by or on the order of a physician).

            HEARTSAVER VAD(TM), Not currently available.

--------------------------------------------------------------------------------

         World Heart Corporation              World Heart Inc.
         1 Laser Street                       7799 Pardee Lane
         Ottawa, Ontario, Canada K2E 7V1      Oakland, California U.S.A. 94621
         Tel: (613) 226-4278                  Tel: (510) 563-5000
         Fax: (613) 226-4744                  Fax: (510) 563-5005


         Investor or general information enquiries:

         Contact: Mark Goudie                    www.worldheart.com
         Canada:  (613) 226-4278, ext:  2509     investors@worldheart.com
         U.S.A. : (510) 563-4995                 communications@worldheart.com

<PAGE>

                                   SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                                                     World Heart Corporation


         Date:  November 28, 2003           By:      /s/  Mark Goudie
                                                --------------------------------
                                                Name:  Mark Goudie
                                                Title: Chief Financial Officer