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                                                                   EXHIBIT 99.2

                                 August 30, 2001


Dear Shareholder:

        On June 15, 2001, your Board of Directors authorized the adoption of a
shareholder rights plan which was enacted on August 17, 2001 in an effort to
assure that all CardioGenesis Corporation shareholders receive maximum value in
the event of an attempted or actual takeover of CardioGenesis. We have enclosed
a summary description of the plan, which we urge you to read carefully.

        Adoption of rights plans is a common practice among public companies in
the United States. Rights plans are intended to provide the Board of Directors
with additional time and bargaining power to protect shareholder interests in
the event of an unsolicited takeover bid. The rights plan will not prevent a
takeover of CardioGenesis on terms that are in the best interest of all
shareholders. However, the rights plan should encourage a potential acquiror to
negotiate with the Board prior to attempting a takeover. This should position
the Board of Directors to protect your interests.

        CardioGenesis' rights plan involves the distribution of one "Right" for
each share of common stock outstanding on August 30, 2001. Thereafter, each
newly issued share of common stock will also include a Right. Initially, there
will be no separate Rights certificates. Instead, each Right will simply be a
part of the share of common stock to which it is attached. It will be
represented by the common stock certificate, it will trade automatically with
the common stock, and it will not be separable or exercisable unless certain
events occur.

        If a person or group acquires 15% or more of CardioGenesis' outstanding
common stock, each Right not owned by the acquiror or its affiliates will
entitle its holder to pay CardioGenesis $15 (the initial exercise price per
Right) and receive newly issued shares of common stock worth $30. For example,
if CardioGenesis' stock were trading at $1, each Right would entitle its holder
to purchase 30 shares for an aggregate price of $15, equivalent to a purchase
price of $0.50 per share. This ability of shareholders other than the acquiror
to purchase additional shares at a 50% discount from market causes an unapproved
takeover to be much more expensive to an acquiror. As a result, a potential
acquiror has a strong incentive not to pursue a hostile strategy, and instead to
negotiate with your Board of Directors to redeem the Rights or approve the
transaction so that the Rights do not become exercisable.

        Adoption of the rights plan does not affect CardioGenesis' financial
strength and will not interfere with our business strategy and plans. The
issuance of the Rights alone will not affect earnings per share or change the
way in which you can presently trade shares of CardioGenesis.


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        The attached summary describes these Rights in more detail. Thank you
for your continued support of CardioGenesis Corporation.

        Sincerely,

        Michael J. Quinn
        President, Chairman and Chief Executive Officer





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