Intuitive Surgical Announces $20 Million Preliminary Fourth Quarter Revenue; 17 da Vinci Systems Shipped

SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 15, 2003--Intuitive Surgical, Inc. (Nasdaq:ISRG), the leader in operative surgical robotics, announced today that it anticipates fourth quarter 2002 revenue to total approximately $20 million, up 25% from fourth quarter 2001 revenue of $16 million. Recurring revenue is expected to total $4.7 million, up 104% over the prior year and up $0.8 million sequentially from the third quarter of 2002. The company expects fiscal year 2002 revenue to total approximately $71 million, up 37% over 2001 results.

Intuitive shipped 17 da Vinci(TM) Surgical Systems during the quarter, up from 15 in the fourth quarter last year. Total 2002 da Vinci(TM) Surgical System shipments totaled 60 and cumulative worldwide da Vinci(TM) Surgical System placements now total 149.

Commenting on the revenue announcement, Lonnie Smith, President and CEO of Intuitive Surgical said: "While we fell slightly short of our fourth quarter system unit target, we remain pleased with another record quarter, our recurring revenue momentum, and future prospects. We continue to expect 2003 revenue to grow to between $85 million and $100 million. With this top line, we expect to achieve profitability by the fourth quarter of 2003."

The company will also discuss this announcement at a conference call today at 11:00 AM PST/ 2:00 PM EST. The dial-in numbers for this call are 888/831-6085 for U.S. calls and 630/395-0215 for international calls. The passcode is ISRG and the meeting leader is Ms. Susan Barnes.

Final revenue and complete financial results will be released in early February after the completion of the company's year-end audit.

About the da Vinci(TM) Surgical System:

The da Vinci(TM) Surgical System consists of a surgeon's viewing and control console having an integrated, high-performance InSite(TM) 3-D vision system, a patient-side cart consisting of three robotic arms that position and precisely maneuver endoscopic instruments and an endoscope, and a variety of articulating EndoWrist(TM) Instruments. By integrating computer-enhanced technology with surgeons' technical skills, Intuitive believes that its System enables surgeons to perform better surgery in a manner never before experienced. The da Vinci(TM) Surgical System seamlessly and directly translates the surgeon's natural hand, wrist and finger movements on instrument controls at the surgeon's console outside the patient's body into corresponding micro-movements of the instrument tips positioned inside the patient through small puncture incisions, or ports.

The statements contained in this release may be deemed to contain "forward-looking statements." Such statements are indicated by words or phrases such as "anticipate," "estimate," "projects," "believes," "intends," "expects" and similar words and phrases. Actual results may differ materially from those expressed or implied in any forward-looking statement as a result of certain risks and uncertainties, including, without limitation, competition and market acceptance of the Company's products, ability to obtain regulatory approvals and third-party reimbursement, ability to raise additional capital and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings. Prospective investors are cautioned not to place undue reliance on such forward-looking statements.

Note to Editors: Intuitive(R), da Vinci(TM), InSite(TM), and EndoWrist(TM) are trademarks of Intuitive Surgical, Inc.