IN THE NEWS

July 31, 2007


BOTHELL, WA, – Cardiac Science Corporation, a global leader in external cardiac monitoring and defibrillation products, today announced strong results for the second quarter ended June 30, 2007.

Revenue for the quarter was $44.9 million, an increase of 14.5% over the prior year period. The growth reflected a 39% increase in defibrillation sales, partially offset by a 6% decline in cardiac monitoring sales from the second quarter of 2006. Defibrillation was driven by domestic AED sales, which rose 83% from the prior year’s second quarter and 31% sequentially over first quarter of 2007, illustrating continued momentum and gains in market share. Cardiac monitoring revenue remained approximately flat compared to each of the last three quarters, despite the year-over-year contraction.

The Company reported net income of $4.5 million, or $0.19 per diluted share in the second quarter. Net income included a non-cash benefit of $6.0 million related to the Company’s settlement with Philips Medical Systems and charges of $2.0 million in legal and other costs related to this and other litigation during the quarter. The aggregate effect of these litigationrelated items, net of income taxes, was to increase the already positive net income in the quarter by $2.7 million, or $0.12 per diluted share.

“Revenue this quarter surpassed our previous best performance, achieved in the first quarter of this year, and was driven by strength in our defibrillation sales. We are particularly pleased with the return to operating profitability and our domestic AED performance. In addition, the settlement of all our major litigation over the last 90 days represents a significant milestone for the Company,” said John Hinson, president and chief executive officer. “With the spending and distraction related to the litigation behind us, we are now able to concentrate our efforts on gaining market share in defibrillation and growing the cardiac monitoring business during the second half,” he concluded.

Second Quarter Results

Second quarter revenue of $44.9 million increased 14.5% from the $39.2 million in revenue reported in the second quarter of 2006. The second quarter 2007 gross margin was 48.5%, an increase over the gross margin from the second quarter of 2006 of 47.4%, driven by favorable product mix and manufacturing efficiencies.

Operating expenses in the second quarter of 2007 were $15.5 million, including the pre-tax effect of the Philips licensing income and litigation settlement and other litigation and related expenses. Excluding the licensing income and litigation settlement of $6.0 million and other litigation and related expenses of $2.0 million, operating expenses were up approximately $2.0 million compared to the second quarter of last year. This year-over-year increase is primarily related to sales commissions and other costs associated with the significant growth in revenue. Litigation and related expenses during the second quarter totaled $2.0 million, comprised of settlement costs and legal fees related primarily to the three cases, Philips, IAML and Parker, which were settled between April and July. Operating expenses in the second quarter of 2006 included $1.3 million in litigation expenses relating to these same cases.

The Company recorded the settlement with Philips in the second quarter, which included recognition of a $6.0 million non-cash benefit related to the license rights given to Philips. In addition, as part of the settlement, the Company recorded intangible assets of $7.0 million, representing the value of the license rights the Company received from Philips. The intangible assets will be amortized through a non-cash charge to cost of goods sold at a rate of approximately $500,000 per year over the estimated remaining economic life of the related patents.

Including the licensing income and litigation settlement benefit of $6.0 million and other litigation and related expenses of $2.0 million, the Company reported net income of $4.5 million, or $0.19 per diluted share, for the second quarter of 2007. The after-tax impact of the licensing income and litigation settlement benefit and other litigation related expenses was $0.12 per diluted share.

EBITDA was $8.3 million for the second quarter of 2007. Excluding stock-based compensation expense and the litigation related items, Adjusted EBITDA was $4.9 million, or 11% of revenue. The Company generated $3.4 million in cash from operating activities during the quarter and ended the quarter with $14.2 million in cash and short-term investments.

Outlook

The Company continues to expect revenue growth for the full year to be at least 10%, reflecting continued significant growth in defibrillation revenue and slight improvements in cardiac monitoring and service revenue in the second half. The Company anticipates the strong second half results will reflect substantial year-over-year growth in each quarter, although the third quarter may show a sequential decrease compared to the second quarter.

For the full year 2007, gross margin is expected to be at the higher end of the previously indicated range of 46% to 48%, depending on several factors, including product pricing and mix and the timing of the impact of planned cost reductions and productivity increases. Although gross margin exceeded this range during the second quarter, the above factors and the anticipated increase in the proportion of OEM shipments (including the GE crash cart) are expected to reduce the average during the second half. These gross margin expectations include the amortization of the intangible assets received in the Philips settlement discussed above. Operating expenses are expected to remain consistent with earlier guidance. The Company will take advantage of the significantly reduced legal spending in the second half of 2007 to invest more in research and development. Total spending in the sales and marketing and general and administrative areas, however, is expected to moderate as a percentage of revenue during the remainder of the year.

Operating profit should increase year over year, both in dollars and as a percentage of revenue. Adjusted EBITDA is still expected to be in a range between 9% and 11%.

As a result of the impact of the litigation settlements and expenses, net of income taxes, the Company has increased its overall 2007 net income guidance to between $6.0 million and $8.0 million, or between $0.26 and $0.34 per diluted share. Excluding the effects of the legal settlements and related litigation spending, this represents an increase to the upper end of the earlier guidance of approximately $0.02 per diluted share.

“The range of our expected results balances our expectation for continued momentum in domestic AED sales with the uncertainty related to the timing of GE shipments, as well as the uncertainty related to the timing of the domestic market re-entry by Medtronic Physio,” said Mike Matysik, chief financial officer. “If these things work in our favor, then we could certainly be in the upper portion of this range,” he concluded.

Non-GAAP and Pro Forma Financial Information

This news release contains a discussion of Adjusted EBITDA, which is a non-GAAP financial measure provided as a complement to results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The term “Adjusted EBITDA” refers to a financial measure defined as earnings before net interest, income taxes, depreciation, amortization, stock-based compensation, merger related expenses and litigation expense. Adjusted EBITDA is not a substitute for measures determined in accordance with GAAP, and may not be comparable to Adjusted EBITDA as reported by other companies. Adjusted EBITDA is an integral part of the internal management reporting and planning process and is the primary measure used by management to evaluate the operating performance of the Company’s operations. The components of Adjusted EBITDA include the key revenue and expense items for which operating managers are responsible and upon which their performance is evaluated. The Company also uses Adjusted EBITDA for planning purposes and in presentations to its board of directors. Reconciliations of net income, the most comparable GAAP measure, to Adjusted EBITDA are contained in this press release.

Conference Call Information

Cardiac Science has scheduled a conference call for 4:30 p.m. Eastern Standard Time today to discuss the Company’s financial results for the second quarter. The call will be hosted by John Hinson, chief executive officer, and Mike Matysik, chief financial officer.

To access the conference call, please dial (800) 240-7305. International participants can call (303) 262-2131. The call will also be webcast live on the web at www.cardiacscience.com. An audio replay of the call will be available for 7 days following the call at (800) 405-2236 for U.S. callers or (303) 590-3000 for those calling outside the U.S. The password required to access the replay is 11093331#. An audio archive will be available at www.cardiacscience.com for one month following the call.

About Cardiac Science

Cardiac Science, a wholly owned subsidiary of Opto Circuits (India) Ltd., develops, manufactures, and markets a family of advanced diagnostic and therapeutic cardiology devices and systems, including automated external defibrillators (AED), electrocardiograph devices (ECG/EKG), cardiac stress treadmill and systems, PC-based diagnostic workstations, Holter monitoring systems, hospital defibrillators, vital signs monitors, cardiac rehabilitation telemetry systems, and cardiology data management systems (informatics) that connect with hospital information (HIS), electronic medical record (EMR), and other information systems. The company sells a variety of related products and consumables and provides a portfolio of training, maintenance, and support services. Cardiac Science, the successor to the cardiac businesses that established the trusted Burdick^®, HeartCentrix^®, Powerheart^®, and Quinton^® brands, is headquartered in Bothell, Washington. With customers in almost 100 countries worldwide, the company has operations in North America, Europe, and Asia. For information, call 425.402.2000 or visit http://www.cardiacscience.com.

Forward-Looking Statements

This press release contains forward-looking statements. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, those relating to Cardiac Science Corporation's future AED sales in Japan, expected shipments of backordered products in the fourth quarter of 2010, and expectations regarding the closing of the transaction with Opto Circuits. These are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results and performance may vary significantly from those expressed or implied in such statements. Factors that could cause or contribute to such varying results and other risks include those more fully described in the Annual Report on Form 10-K filed by Cardiac Science Corporation for the year ended December 31, 2009, as updated by subsequent quarterly reports on Form 10-Q. Cardiac Science Corporation undertakes no duty or obligation to update the information provided herein.

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For information, contact (media) Anastasia Mironova amironova@cardiacscience.com+1.425.402.2092 | (investors) ir@optoindia.com | +91.80.2852.8088 LOGO: http://www.cardiacscience.com/images/main_logo.gif