# GUIDANT CORPORATION

# EXHIBIT 99.1

# Factors Possibly
Affecting Future Operating Results

From time to time, Guidant
Corporation (the Company) publishes forward-looking statements relating to anticipated
financial performance, business development (mergers, acquisitions, etc.), product
development and regulatory approval timelines, intellectual property matters, market
developments and similar matters. A variety of factors could cause the Companys
actual results to differ materially from those projected, including the following:

1. Product development and production factors, including:

          a.    The difficulties and uncertainties inherent in new product development (including new
      products such as drug eluting stents), including products that appear promising during
      development but fail to reach the market or reach the market later than expected as a result
      of safety, performance or efficacy concerns, inability to obtain necessary regulatory
      approvals, unanticipated restrictions imposed on approved indications, excessive costs to
      manufacture or technological advances by competitors of the Company.

          b.    Unexpected safety, performance or efficacy concerns arising with respect to marketed
      products, whether or not scientifically justified, leading to product recalls, withdrawals
      or declining sales.

          c.    Unexpected interruptions of manufacturing operations as a result of regulatory enforcement
      actions by the FDA, U.S. Nuclear Regulatory Commission, or other regulatory authorities or
      the unavailability of necessary components or materials used in manufacturing the Company's
      products.
2. Litigation and other legal factors that could preclude commercialization of products or negatively affect the
          level of sales or profitability of existing products, including litigation of product liability matters,
          commercial litigation, patent litigation or regulatory enforcement actions, which could result in injunctions,
          the payment of royalties or other damages.
3. Competitive factors, including:

          a.  The ability of the Company to obtain intellectual property rights sufficient to protect its
    products or the acquisition of patents by competitors that prevent the Company from selling a
    product or including key features in the Company's products.

          b.  The introduction of new products or therapies (including products currently under development
    by the Company and others) or scientific or medical developments that render the Company's
    existing products less competitive.
4. Domestic and international governmental factors including changes to laws and regulations, policies and judicial
           decisions that affect the regulation and reimbursement of medical devices, product liability, health care reform
           or tax laws.
5. Health care industry factors, including increased customer demands for price concessions, reductions in
           third-party (Medicare, Medicaid and other governmental programs, private healthcare insurance and managed care
           plans) reimbursement levels or refusals to provide reimbursement for procedures using the Company's products and
           limits imposed by customers on the number of manufacturers or vendors from which the customer will purchase
           products.
6. Internal factors, such as retention of key employees, including sales employees, and changes in business
           strategies.
7. The impact of restructuring and business combinations, including the integration of acquired businesses.
8. General economic factors, including changes in foreign currency exchange rates, interest rates and inflation.
9. Other factors beyond the control of the Company, including earthquakes (particularly in light of the fact that
           the Company has significant facilities located near major earthquake fault lines), floods, fires, explosions or
           acts of terrorism or war, the outcomes of which may not be covered by insurance.

The Company does not undertake to
update its forward-looking statements.

The Companys Annual Report on
Form 10-K further describes risks associated with manufacturing, patents,
competition, regulation, third-party reimbursement and related matters.