Cardiac Science 8-K Cardiac Science Reports Record Third Quarter Results

FOR IMMEDIATE RELEASE

CARDIAC SCIENCE REPORTS RECORD THIRD QUARTER RESULTS

Total Revenue Up 18% to Record $45.1 Million
Defibrillation Revenue Up 48% vs. Prior Year
EPS Improves to $0.08

BOTHELL, WA, OCTOBER 30, 2007 — Cardiac Science Corporation (Nasdaq: CSCX), a global leader in advanced cardiac monitoring and defibrillation products, today announced another quarter of strong results for the third quarter ended September 30, 2007.

Revenue for the quarter was $45.1 million. This was an increase of 18% over the prior year period, including a 48% increase in defibrillation revenue, partially offset by a 6% decline in cardiac monitoring revenue from the third quarter of 2006. Domestic AED revenue rose 78% over the third quarter of 2006 and international defibrillation revenue was up by 20% for the same comparative periods.

The Company reported net income of $1.8 million or $0.08 per diluted share this quarter, which is a significant increase over the loss of $0.01 per diluted share reported in the third quarter of 2006. These third quarter results compare to the Company’s second quarter pro forma earnings of $0.07 per diluted share, which excludes the $0.12 per share benefit of litigation and legal settlement items recorded last quarter from the reported earnings of $0.19 per diluted share.

“Overall revenue was again at record levels this quarter, driven by the strength of both our domestic and international defibrillation business. We are especially pleased to see the continued strong growth in our international defibrillation revenue where all competitors remain in the market, demonstrating the strength of our products and our ability to grow with full levels of competition,” said John Hinson, president and chief executive officer.

Third Quarter Results

Third quarter revenue of $45.1 million increased 18% from the $38.1 million in revenue reported in the third quarter of 2006. Third quarter gross margin improved to 49.0% from 47.4% in the third quarter of 2006. This was driven primarily by favorable product mix toward higher margin AED products and the impact of continued cost reduction initiatives.

Operating expenses in the third quarter of 2007 were $19.9 million compared to $18.7 million in the same period in 2006, which included $1.3 million in litigation and related expenses. The year to year increase in expenses primarily related to sales commissions and other costs

associated with growth in revenue, as well as increased investment in research and development activities.

Litigation expense during the third quarter was $0.1 million, representing final costs on the three cases that were resolved in earlier periods.

The Company reported net income of $1.8 million, or $0.08 per share, for the third quarter of 2007. EBITDA was $4.4 million for the third quarter of 2007 and, excluding stock-based compensation expense and the litigation related items, Adjusted EBITDA was $5.1 million or 11.3% of revenue.

The Company generated $3.6 million in cash from operating activities during the quarter and had $16.9 million in cash and short-term investments as of September 30, 2007.

Outlook

The Company is increasing its revenue guidance for the full year to between $175 million and $180 million, with gross margin in a range around 48%.

“We are looking forward to a strong finish in 2007, which we expect will include the first meaningful sales of our GE hospital defibrillator, continued strong AED sales and a slight increase in overall cardiac monitoring revenue,” said Mike Matysik, chief financial officer. “We are experiencing a soft hospital market. However, we have seen some momentum in the physician office and overseas markets. We continue to believe our cardiac monitoring business has the potential for improvement,” Mr. Matysik continued.

Operating expenses are expected to remain consistent with earlier guidance, with a slight increase in research and development spending in the fourth quarter. Other operating expense items are generally expected to moderate in proportion to revenue during the remainder of the year.

The Company has increased its overall 2007 net income guidance to $7.8 million to $8.3 million, or between $0.33 and $0.36 per diluted share. Adjusted EBITDA is still expected to be in a range between 10% and 11%.

Non-GAAP and Pro Forma Financial Information

This news release contains a discussion of EBITDA and Adjusted EBITDA, which is are non-GAAP financial measures provided as a complement to results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The term “EBITDA” refers to a financial measure defined as earnings before net interest, income taxes, depreciation and amortization. “Adjusted EBITDA” refers to EBITDA before stock-based compensation, merger related expenses and litigation expense. Neither of these measures are a substitute for measures determined in accordance with GAAP, and may not be comparable to as the same measures as reported by other companies. EBITDA and Adjusted EBITDA are an integral part of the internal management reporting and planning process and are the primary

measures used by management to evaluate the operating performance of the Company’s operations. The components of these measures 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 EBITDA and Adjusted EBITDA are contained in this press release.

Conference Call Information

Cardiac Science has scheduled a conference call for 4:30 p.m. Eastern Time today to discuss the Company’s financial results for the first 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) 218-0204. International participants can call (303) 262-2130. 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 11098127#. An audio archive will be available at www.cardiacscience.com for one month following the call.

About Cardiac Science Corporation

Cardiac Science is truly at the heart of saving lives. The Company develops, manufactures, and markets a family of advanced diagnostic and therapeutic cardiology devices and systems, including AEDs, electrocardiographs, stress test systems, Holter monitoring systems, hospital defibrillators, cardiac rehabilitation telemetry systems, patient monitor — defibrillators and cardiology data management systems. Cardiac Science also sells a variety of related products and consumables, and provides a comprehensive portfolio of training, maintenance and support services. The Company is the successor to various entities that have owned and operated cardiology-related businesses that sold products under the trusted brand names Burdick^®, Powerheart^®, and Quinton^®. Cardiac Science is headquartered in Bothell, WA, and also has operations in Lake Forest, California; Deerfield, Wisconsin; Shanghai, China; Manchester, United Kingdom and Copenhagen, Denmark.

Forward Looking Statements

This press release contains forward-looking statements. The word “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 revenue, earnings, earnings per share, cash flow, gross margins, key distribution partnerships and revenue derived from them, litigation related expenses, trial dates, product releases and revenue derived from them, and Adjusted EBITDA. These are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. In addition, the accounting for the settlement with Philips is still in process and may result in a material adjustment to the numbers presented

herein. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause or contribute to such varying results and other risks are more fully described in the Annual Report on Form 10-K filed by Cardiac Science Corporation for the year ended December 31, 2006. Cardiac Science Corporation undertakes no duty or obligation to update the information provided herein.

Company Contact	Investor Group
Mike Matysik	EVC Group, Inc.
Cardiac Science Corporation	Douglas Sherk/Jenifer Kirtland
Sr. Vice President and CFO	(415) 896-6820
(425) 402-2009
	Media Contact
	EVC Group, Inc.
	Steve DiMattia
	(646) 201-5445

(Tables to Follow)

Cardiac Science Corporation and Subsidiaries
Condensed Consolidated Statements of Operations (unaudited)
(in thousands, except share and per share amounts)

	Three Months Ended September 30
	2007						2006
	$			%			$			%
Revenues:
Products	$	41,145			91.1	%	$	33,890			88.9	%
Service		3,999			8.9	%		4,226			11.1	%
Total revenues		45,144			100.0	%		38,116			100.0	%
Cost of Revenues:
Products		19,749			48.0	%		16,910			49.9	%
Service		3,252			81.3	%		3,138			74.3	%
Total cost of revenues		23,001			51.0	%		20,048			52.6	%
Gross Profit:
Products		21,396			52.0	%		16,980			50.1	%
Service		747			18.7	%		1,088			25.7	%
Gross profit		22,143			49.0	%		18,068			47.4	%
Operating Expenses:
Research and development		3,391			7.5	%		2,792			7.3	%
Sales and marketing		11,913			26.4	%		10,045			26.4	%
General and administrative		4,462			9.9	%		4,606			12.1	%
Litigation and related expenses		91			0.2	%		1,257			3.3	%
Total operating expenses		19,857			44.0	%		18,700			49.1	%
Operating income (loss)		2,286			5.1	%		(632	)		-1.7	%
Other Income (Expense):
Interest income, net		103			0.2	%		18			0.0	%
Other income, net		406			0.9	%		94			0.2	%
Total other income		509			1.1	%		112			0.3	%
Income (loss) before income tax benefit (expense) and minority interest		2,795			6.2	%		(520	)		-1.4	%
Income tax benefit (expense)		(1,023	)		-2.3	%		209			0.5	%
Income (loss) before minority interest		1,772			3.9	%		(311	)		-0.8	%
Minority interest		(13	)		0.0	%		13			0.0	%
Net income (loss)	$	1,759			3.9	%	$	(298	)		-0.8	%
Net income (loss) per share — basic	$	0.08					$	(0.01	)
Net income (loss) per share — diluted	$	0.08					$	(0.01	)
Weighted average shares outstanding — basic		22,726,066						22,523,266
Weighted average shares outstanding — diluted		23,290,558						22,523,266

Cardiac Science Corporation and Subsidiaries
Condensed Consolidated Statements of Operations (unaudited)
(in thousands, except share and per share amounts)

	Nine Months Ended September 30
	2007						2006
	$			%			$			%
Revenues:
Products	$	119,623			90.8	%	$	103,466			88.8	%
Service		12,080			9.2	%		12,986			11.2	%
Total revenues		131,703			100.0	%		116,452			100.0	%
Cost of Revenues:
Products		58,535			48.9	%		52,101			50.4	%
Service		9,379			77.6	%		9,300			71.6	%
Total cost of revenues		67,914			51.6	%		61,401			52.7	%
Gross Profit:
Products		61,088			51.1	%		51,365			49.6	%
Service		2,701			22.4	%		3,686			28.4	%
Gross profit		63,789			48.4	%		55,051			47.3	%
Operating Expenses:
Research and development		9,463			7.2	%		8,637			7.4	%
Sales and marketing		34,466			26.2	%		29,342			25.2	%
General and administrative		13,907			10.6	%		14,360			12.3	%
Litigation and related expenses		3,808			2.9	%		3,230			2.8	%
Licensing income and litigation settlement		(6,000	)		-4.6	%		—			0.0	%
Total operating expenses		55,644			42.2	%		55,569			47.7	%
Operating income (loss)		8,145			6.2	%		(518	)		-0.4	%
Other Income (Expense):
Interest income (expense), net		199			0.2	%		(37	)		0.0	%
Other income, net		858			0.7	%		599			0.5	%
Total other income		1,057			0.8	%		562			0.5	%
Income before income tax benefit (expense) and minority interest		9,202			7.0	%		44			0.0	%
Income tax benefit (expense)		(3,103	)		-2.4	%		1			0.0	%
Income before minority interest		6,099			4.6	%		45			0.0	%
Minority interest		24			0.0	%		39			0.0	%
Net income	$	6,123			4.6	%	$	84			0.1	%
Net income per share — basic	$	0.27					$	0.00
Net income per share — diluted	$	0.26					$	0.00
Weighted average shares outstanding — basic		22,676,332						22,480,553
Weighted average shares outstanding — diluted		23,248,930						22,551,600

Cardiac Science Corporation and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(in thousands)

	September 30, 2007		December 31, 2006
ASSETS
Current Assets:
Cash and cash equivalents	$	16,561	$	9,819
Short-term investments		346		547
Accounts receivable, net		27,088		26,971
Inventories		20,448		17,617
Deferred income taxes, net		3,804		3,902
Prepaid expenses and other current assets		2,517		2,121
Total current assets		70,764		60,977
Other assets		208		209
Machinery and equipment, net of accumulated depreciation		5,398		5,956
Deferred income taxes, net		37,661		40,525
Intangible assets, net of accumulated amortization		36,042		31,869
Investment in unconsolidated entities		761		496
Goodwill		107,613		107,613
Total assets	$	258,447	$	247,645
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	12,511	$	11,761
Accrued liabilities		10,384		9,890
Warranty liability		3,169		2,532
Deferred revenue		7,739		7,111
Total current liabilities		33,803		31,294
Other liabilities		213		679
Total liabilities		34,016		31,973
Minority interest		99		75
Shareholders’ Equity		224,332		215,597
Total liabilities and shareholders’ equity	$	258,447	$	247,645

Cardiac Science Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(in thousands)

	Three Months Ended
	September 30
	2007			2006
Operating Activities:
Net income (loss)	$	1,759		$	(298	)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization		1,762			1,561
Deferred income taxes		912			(345	)
Stock-based compensation		574			522
Minority interest		62			(13	)
Gain on disposal of machinery and equipment		(5	)		—
Changes in operating assets and liabilities, net of business acquired:
Accounts receivable, net		243			2,238
Inventories		(259	)		(1,077	)
Prepaid expenses and other assets		622			348
Accounts payable		(1,881	)		67
Accrued liabilities		(461	)		(611	)
Warranty liability		264			(24	)
Deferred revenue		33			(376	)
Net cash flows provided by operating activities		3,625			1,992
Investing Activities:
Purchases of short-term investments		(346	)		—
Maturities of short-term investments		395			—
Purchases of machinery and equipment		(866	)		(137	)
Payments related to the purchase of Cardiac Science, Inc.		(215	)		(316	)
Proceeds from collection of note		—			238
Net cash flows used in investing activities		(1,032	)		(215	)
Financing Activities:
Proceeds from exercise of stock options and issuance of shares under employee purchase plan		147			176
Net cash flows provided by financing activities		147			176
Net change in cash and cash equivalents		2,740			1,953
Cash and cash equivalents, beginning of period		13,821			8,746
Cash and cash equivalents, end of period	$	16,561		$	10,699

Cardiac Science Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(in thousands)

	Nine Months Ended
	September 30
	2007			2006
Operating Activities:
Net income	$	6,123		$	84
Adjustments to reconcile net income to cash provided by operating activities:
Licensing income and litigation settlement		(6,000	)		—
Depreciation and amortization		5,074			4,661
Deferred income taxes		2,864			(233	)
Stock-based compensation		1,749			1,538
Minority interest		24			(39	)
Gain on disposal of machinery and equipment		(1	)		—
Changes in operating assets and liabilities, net of business acquired:
Accounts receivable, net		(117	)		3,136
Inventories		(2,800	)		697
Prepaid expenses and other assets		(394	)		1,334
Accounts payable		666			945
Accrued liabilities		805			(2,959	)
Warranty liability		637			39
Deferred revenue		628			(467	)
Net cash flows provided by operating activities		9,258			8,736
Investing Activities:
Purchases of short-term investments		(890	)		—
Maturities of short-term investments		1,091			—
Purchase of patents as part of litigation settlement		(1,000	)		—
Purchases of machinery and equipment		(1,688	)		(933	)
Payments related to the purchase of Cardiac Science, Inc.		(777	)		(1,530	)
Proceeds from collection of note		—			238
Net cash flows used in investing activities		(3,264	)		(2,225	)
Financing Activities:
Proceeds from exercise of stock options and issuance of shares under employee purchase plan		748			642
Net cash flows provided by financing activities		748			642
Net change in cash and cash equivalents		6,742			7,153
Cash and cash equivalents, beginning of period		9,819			3,546
Cash and cash equivalents, end of period	$	16,561		$	10,699

Cardiac Science Corporation and Subsidiaries
Reconciliation of GAAP Results to Non-GAAP Results (unaudited)
(in thousands)

	Reconciliation of Net Income (loss) to Adjusted EBITDA
	Three Months Ended						Three Months Ended
	September 30, 2007						September 30, 2006
				% of revenue						% of revenue
Net income (loss)	$	1,759			3.9	%	$	(298	)		-0.8	%
Depreciation and amortization		1,762			3.9	%		1,561			4.1	%
Interest income		(103	)		-0.2	%		(18	)		0.0	%
Income tax (benefit) expense		1,023			2.3	%		(209	)		-0.5	%
EBITDA		4,441			9.8	%		1,036			2.7	%
Stock-based compensation		574			1.3	%		522			1.4	%
Litigation and related expenses		91			0.2	%		1,257			3.3	%
Adjusted EBITDA	$	5,106			11.3	%	$	2,815			7.4	%

	Reconciliation of Net Income (loss) to Adjusted EBITDA
	YTD Months Ended						YTD Months Ended
	September 30, 2007						September 30, 2006
				% of revenue						% of revenue
Net income	$	6,123			4.6	%	$	84			0.1	%
Depreciation and amortization		5,074			3.9	%		4,661			4.0	%
Interest (income) expense		(199	)		-0.2	%		37			0.0	%
Income tax (benefit) expense		3,103			2.4	%		(1	)		0.0	%
EBITDA		14,101			10.7	%		4,781			4.1	%
Stock-based compensation		1,749			1.3	%		1,538			1.3	%
Litigation and related expenses		3,808			2.9	%		3,230			2.8	%
Licensing income and litigation settlement		(6,000	)		-4.6	%		—			0.0	%
Pro forma merger related adjustments		—			0.0	%		419			0.4	%
Adjusted EBITDA	$	13,658			10.4	%	$	9,968			8.6	%