FOXH Foxhollow Technologies (MM)

REDWOOD CITY, Calif., Dec. 20 /PRNewswire-FirstCall/ -- FoxHollow Technologies (NASDAQ:FOXH), which manufactures and markets minimally invasive devices for the treatment of peripheral and coronary artery disease, today provided an update on its outlook for fourth quarter 2006 revenues. The company said it expects that total revenues for the quarter will be in the range of $44-$46 million. This compares with prior guidance for revenues of $54-$56 million in the quarter. FoxHollow said it expects fourth quarter 2006 product revenues will be in the range of $39.4-$41.4 million. Product revenues are expected to include approximately $1.5 million in sales from devices other than the company's SilverHawk System. Research collaboration revenues in the fourth quarter of 2006 are expected to be approximately $4.6 million. Research collaboration revenues will be favorably affected by the approximately $25 million difference between the purchase price and fair value of shares sold to Merck as part of the recently announced expanded collaboration between the two companies. The amount will be recognized as revenue ratably over the four-year term of the agreement. Dr. John Simpson, FoxHollow's chief executive officer commented, "We are disappointed by the sales results we have seen this quarter. The slowdown in SilverHawk sales has prompted us to conduct an extensive analysis of our internal programs as well as the market environment in which we are operating. Based on this analysis we are currently reviewing several initiatives which we believe will help to restore both near- and long-term growth. We expect to complete this review and communicate the key elements of our strategy in January of 2007. We are committed to addressing the current challenges in our business and remain optimistic about the opportunities available to us." Simpson further added, "We continue to be highly enthusiastic about the ability of our devices to provide a meaningful treatment option for patients suffering from peripheral artery disease. We recognize the need to continue to drive awareness of the treatment options available to these 12 million patients and the ability of our offerings to save limbs and even lives." About FoxHollow Technologies FoxHollow Technologies, Inc., develops and markets minimally invasive devices for the removal of plaque and thrombus for the treatment of peripheral artery disease (PAD). An estimated 12 million people in the United States are thought to suffer from PAD, with 2.5 million patients currently diagnosed. PAD results from plaque that accumulates in the arteries and blocks blood flow in the legs. These blockages can result in severe pain for patients and very limited physical mobility. The company's SilverHawk System is a minimally invasive method of removing the obstructive plaque and restoring blood flow to the legs and feet. The company's Rinspirator thrombectomy system, acquired in September 2006, removes thrombus, or blood clots, from occluded arteries in patients suffering from PAD or coronary artery disease (CAD). For more information, please visit our website at http://www.foxhollowtech.com/ Forward-Looking Statements This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this press release regarding FoxHollow's businesses that are not historical facts may be "forward-looking statements" that involve risks and uncertainties. Specifically, statements regarding the company's fourth quarter 2006 financial results and plans to communicate a revised strategy, are forward-looking statements involving risks and uncertainties. Forward-looking statements are based on management's current, preliminary expectations, and are subject to risks and uncertainties that could cause actual results to differ from the results predicted. These risks and uncertainties are included under the caption, "Factors Affecting Future Operating Results," in "Management's Discussion and Analysis of Financial Condition and Results of Operations," in our most recently quarterly report on form 10-Q for the quarter ended September 30, 2006, filed with the SEC on November 9, 2006, and available on our investor relations website at http://www.foxhollowtech.com/ and on the SEC's website at http://www.sec.gov/ . Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. FoxHollow undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events. Contacts: Matt Ferguson Chief Financial Officer 650-421-8449 Robin Gaffney Media Relations 650-421-8614 DATASOURCE: FoxHollow Technologies, Inc. CONTACT: investors, Matt Ferguson, Chief Financial Officer, +1-650-421-8449, or , or media, Robin Gaffney, Media Relations, +1-650-421-8614, or , both of FoxHollow Technologies, Inc. Web site: http://www.foxhollowtech.com/

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