Cardiovascular Systems Completes $29 Million Debt Facility with Silicon Valley Bank and Partners for Growth

Cardiovascular Systems, Inc. (CSI) (Nasdaq: CSII), announced today that it has established a $25 million credit facility with Silicon Valley Bank and up to $4 million in convertible debt with Partners for Growth. Proceeds will be used to consolidate existing outstanding debt, provide working capital for growth and for general corporate purposes.

“This financing enhances the company’s financial flexibility as we continue to grow our business and work toward profitability and positive cash flow,” said David L. Martin, president and CEO of Cardiovascular Systems. “We are focused on advancing our priorities for growth: expanding adoption of the Diamondback 360® for treatment of peripheral arterial disease (PAD), conducting prospective PAD clinical trials, introducing enhanced versions of the Diamondback 360° and expanding our technology for use in the coronary market.”

The Silicon Valley Bank facility consists of a $10 million growth capital term loan and a $15 million line of credit for working capital. The Partners for Growth convertible debt provides the ability to draw up to $4 million in the first 12 months and additional funds over the subsequent four years to the extent debt is converted to common stock. Upon closing the transaction, $1.5 million of convertible debt was drawn by CSI. In addition, CSI issued Partners for Growth a warrant for up to 147,330 shares of its common stock at $5.43 per share.

About Cardiovascular Systems, Inc.

Cardiovascular Systems Inc., (CSI) (Nasdaq: CSII) based in St. Paul, Minn., is a medical device company focused on providing clinically proven, safe and effective solutions for vascular disease. The company’s Diamondback 360® PAD System removes calcified and fibrotic plaque in small and large peripheral vessels, and addresses many of the limitations associated with existing surgical, catheter and pharmacological treatment alternatives. In August 2007, the U.S. FDA granted 510(k) clearance for the use of the Diamondback 360° as a therapy for PAD, and CSI commenced a U.S. product launch in September 2007. Since then, more than 20,000 procedures have been performed using the system. For more information visit the company’s Web site at www.csi360.com.

About Silicon Valley Bank

For nearly 30 years, SVB Financial Group and its subsidiaries, including Silicon Valley Bank, have been dedicated to helping entrepreneurs succeed. SVB Financial Group is a financial holding company that serves companies in the technology, life science, venture capital/private equity and premium wine industries. Offering diversified financial services through Silicon Valley Bank, SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services, SVB Financial Group provides clients with commercial, investment, international and private banking services. SVB also offers funds management, broker-dealer services, asset management and a wide range of financial services for companies of all sizes and stages, as well as the added value of its knowledge and networks worldwide. Headquartered in Santa Clara, California, SVB Financial Group operates through 27 offices in the U.S. and operations in China, India, Israel and the United Kingdom. More information on the SVB Financial Group can be found at www.svb.com.

About Partners for Growth

Partners for Growth (PFG) provides custom debt solutions to private and public emerging growth technology and life science companies. On the technology side, PFG has been focusing on late-stage companies ($10 million and above in revenue) and customizes its financing to match the needs of the company. PFG’s custom approach results in a variety of structures and terms including working capital lines of credit, term loans and convertible debt. PFG looks to share in the success of its clients by taking equity participation rights in the form of stock warrants or convertibility of its debt.

PFG is organized as three private partnerships with over $150 million under management. SVB Financial Group (NASDAQ: SIVB), the parent company of Silicon Valley Bank, is the largest limited partner in Partners for Growth. PFG works closely with Silicon Valley Bank, whereby PFG can provide incremental debt solutions to many of the Bank’s clients.

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