EXHIBIT 99.1

          CARDIOGENESIS COMMENTS ON PRELIMINARY FOURTH QUARTER RESULTS,
         COST REDUCTION MEASURES; NAMES DARRELL F. ECKSTEIN INTERIM CFO

           Michael A. Tuckerman Promoted to Vice President U.S. Sales



FOOTHILL RANCH, CA (January 17, 2002) . . . CardioGenesis Corporation
(Nasdaq:CGCP), the market leader in angina-relieving Transmyocardial
Revascularization (TMR) and Percutaneous Myocardial Revascularization (PMR),
announced today that its preliminary financial results for the fourth quarter
ended December 31, 2001, did not meet internal expectations due in large part to
a drop in laser sales resulting from unfavorable economic conditions, which
negatively impacted capital equipment budgets of its prospect hospitals during
the quarter and lengthened decision cycles.

        Revenue for the fourth quarter is expected to be between $2.4 million
and $2.6 million, and the Company anticipates reporting an operating loss of
between $2.9 million and $3.3 million, before any special charges. CardioGenesis
plans to announce final results for its fourth quarter and year-ended December
31, 2001, and host a conference call, in mid- to late-February.

Organizational Streamlining and Cost Reductions:

        Due to the preliminary fourth quarter results, CardioGenesis has taken a
number of steps to reorganize and realign its domestic sales force and corporate
staff and to reduce the Company's cost structure to amounts appropriate for
current and expected mid-term levels of revenue.

        In the sales and marketing organization, a number of under performing
sales territories were eliminated and combined with other territories resulting
in a sales force reduction of approximately 40 percent. The sales and marketing
organization now has 18 professionals. Combined with a 15 percent reduction in
corporate staff, the total company-wide staff reduction is approximately 28
percent. These changes are expected to generate annual payroll cost savings of
approximately $1.7 million. In addition, a number of other cost containment
measures have been implemented.

        "While we are all very disappointed with the fourth quarter results, we
are committed to reaching our goal of becoming profitable and increasing
shareholder value," said Chairman, President and CEO Michael J. Quinn. "We have
streamlined our workforce, eliminated non-essential expenses and are emphasizing
strict cost controls as we continue to focus on making our TMR franchise
profitable and obtaining FDA clearance of PMR before year-end."

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CARDIOGENESIS COMMENTS ON PRELIMINARY FOURTH QUARTER RESULTS

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Eckstein Named Interim CFO:

        The Company also announced that Darrell F. Eckstein, the Company's Vice
President of Operations, has been named interim Chief Financial Officer,
Secretary and Treasurer, effective immediately. Eckstein, who reports directly
to Chairman, President and CEO Michael J. Quinn, takes over those functions from
J. Stephen Wilkins, 48, who has left the Company to pursue other interests.

        Eckstein, 44, a veteran senior finance and operations executive in the
medical device and health care industries, came to CardioGenesis in December
2000 after four years at Irvine, CA-based Imagyn Medical Technologies, where he
served as Vice President and General Manager of the Surgical Products Division
responsible for corporate engineering, manufacturing, warehousing and
distribution, as well as finance, human resources and customer relations. Prior
to that he spent two years as Vice President, Finance and Chief Financial
Officer of Richland, MI-based Richard-Allen Medical Industries Inc, and from
1991 to 1995, Eckstein was Vice President, Finance and Chief Financial of
National Emergency Services Inc., located in Tiburon, CA. Eckstein also worked
for Deloitte & Touche LLP as a senior audit manager for 11 years. He graduated
from Indiana University with a Bachelor of Science in Accounting.

        Quinn said that once the Company returns to a path of increasing sales
and profitability, it would take steps to fill the CFO slot permanently.

Tuckerman Promoted to Vice President U.S. Sales:

        The Company also announced that, effective immediately, senior sales
veteran Michael A. Tuckerman, 35, has been promoted to Vice President, U.S.
Sales, reporting to Quinn. Tuckerman, who joined CardioGenesis in May 2001 as
General Manager, Central Area, replaces Thomas L. Kinder, 38, who recently left
the Company to pursue other business interests.

        Prior to coming to CardioGenesis, Tuckerman was a top sales performer at
a variety of companies specializing in cardiovascular medical devices. For four
years, from 1997-2001, he was Cardiovascular Sales Specialist and Field Training
Manager at Redwood City, CA-based Heartport Inc. where his duties included
training cardiothoracic surgeons on products and techniques and negotiating
sales with hospital CFOs and CEOs. Tuckerman's last position held at Heartport
was National Manager of Sales. Heartport was acquired by Johnson & Johnson last
year.

        Prior to Heartport, from 1995-1997, Tuckerman was a Technical Sales
Representative at Minneapolis, MN-based Schneider, Inc., a division of Pfizer,
Inc., and from 1991-1995, Tuckerman was the Midwest Area Manager at Norwalk,
CT-based U.S. Surgical Corporation. Tuckerman graduated from Indiana University
with a Bachelor of Science in Marketing.

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CARDIOGENESIS COMMENTS ON PRELIMINARY FOURTH QUARTER RESULTS
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About CardioGenesis Corporation:

        CardioGenesis is a medical device company specializing in the treatment
of cardiovascular disease and is the leader in products that stimulate cardiac
angiogenesis. The Company's market-leading Holmium YAG laser system and
disposable fiber-optic accessories are used to perform a FDA-cleared surgical
procedure known as transmyocardial revascularization (TMR) to treat patients
suffering from angina. The CardioGenesis TMR procedure, which is marketed in the
U.S., Europe and Asia, has been shown to reduce angina and improve the quality
of life in patients with coronary artery disease. The Company's PMR device is
currently being marketed in selected countries in Europe, after having received
a CE mark.

For more information on the Company and its products, please visit the
CardioGenesis web site at http://www.cardiogenesis.com. For investor relations
information, visit the CardioGenesis pages in the "Client" section of the Allen
& Caron Inc web site at www.allencaron.com.

        Any forward-looking statements in this news release related to the
Company's sales, profitability, the adoption of its technology and products and
FDA clearances are based on current expectations and beliefs and are subject to
numerous risks and uncertainties that could cause actual results to differ
materially. Other factors that could cause CardioGenesis' actual results to
differ materially are discussed in the "Risk Factors" section of the Company's
Annual Report on Form 10-K for the year ended December 31, 2000, Quarterly
Report on Form 10-Q for the quarters ended March 31, 2001, June 30, 2001 and
September 30, 2001, and the Company's other recent SEC filings. The Company
disclaims any obligation to update any forward-looking statements as a result of
developments occurring after the date of this press release.

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