December Stock Talk Week I

These are Great Depression-type prices. Consider the analysis Andrew Sorkin, of The New York Times, did on the ETrade deal. Sorkin says only $450 million of ETrade's securities were risky stuff – like second liens and subprime mortgages. The rest of the securities – $3.6 billion – were investment-grade assets. And according to an October SEC filing, $1.35 billion of these securities were prime, first lien, residential mortgages.

Assume that only these prime mortgages have any value at all. Give the rest of the package a zero. Even in this extreme circumstance, Citadel bought $1.35 billion worth of prime mortgages for $800 million. That's more than a 40% discount. Assuming you hold a prime mortgage on your home, would you sell it for 40% less than its appraised value? I doubt it. Savvy financial investors are going to clean up, eventually.

REDWOOD CITY, Calif., Dec. 10 /PRNewswire-FirstCall/ -- Cardica, Inc. (Nasdaq: CRDC) today announced that leading cardiac surgeons from The Heart Hospital Baylor Plano and Centennial Medical Center in Nashville will webcast a live off-pump coronary artery bypass graft (CABG) procedure as well as a for approximately 75-minute live webcast will be available on https://www.OR-Live.com on Thursday, January 17, at 3:00 p.m. Eastern Time. A replay will be available for 180 days following the live presentation.

During the webcast, Michael J. Mack, M.D., and Tung H. Cai, M.D. of The Heart Hospital Baylor Plano, will perform a beating heart procedure using Cardica's C-Port(R) xA and C-Port(R) Flex A Distal Anastomosis Systems. The innovative C-Port(R) anastomosis systems are designed to allow surgeons to automate the attachment of blood vessel grafts, replacing traditional hand- sewn with sutures.

In addition to the live surgery, Louis A. (Trey) Brunsting III, M.D., cardiothoracic surgeon at Centennial Medical Center in Nashville, will present recently taped video footage that shows a robotic closed-chest bypass procedure using the C-Port Flex A system in combination with the Intuitive da Vinci(R) Surgical System. This procedure was done on a 56-year-old male patient with a blockage of his left anterior descending and diagonal vessels. To date, Dr. Brunsting has performed several closed chest procedures using the Cardica device.

Dr. Brunsting and Husam H. Balkhy, M.D., chairman of the department of cardiac surgery of the Wisconsin Heart Hospital will narrate during the procedures, explaining critical aspects of the surgery, and will answer viewers' email questions. Dr. Balkhy also will review data recently presented at the American Heart Association Scientific Sessions evaluating the patency, or openness, of bypass grafts connecting the internal mammary artery (IMA) to the left anterior descending (LAD) artery using C-Port systems during beating heart CABG surgery. We believe this particular type of bypass is vital to the development of robotic, closed-chest bypass procedures, and therefore proving its efficacy in open-chest procedures is critical.

According to Dr. Mack, "Cardica's C-Port systems represent a breakthrough in distal anastomotic devices that facilitate and simplify beating heart and robotic CABG procedures. These devices allow surgeons to offer patients less invasive cardiac surgery and may improve outcomes. This live webcast will provide surgeons with a convenient forum for an interactive exchange of questions, ideas and opinions about these revolutionary devices."

"The C-Port Flex A system has the potential to revolutionize the field of cardiothoracic surgery, as it may enable closed-chest, robot-assisted CABG procedures to be more reliably performed without the assistance of cardiopulmonary bypass and cardioplegic arrest of the heart," added Dr. Brunsting.

To learn more about the live webcast or to register, visit https://www.or-live.com/Cardica/2201. Physicians, investors, media and other interested parties are welcome.

REDWOOD CITY, Calif., Dec. 10 /PRNewswire-FirstCall/ -- Cardica, Inc. (Nasdaq: CRDC) today announced the partial exercise of the over-allotment option granted to the underwriters of Cardica's November 2007 underwritten public offering. The underwriters exercised their option to purchase 481,170 shares of common stock from Cardica at a purchase price of $8.00 per share.

William Blair & Company, L.L.C. acted as the sole book-running manager of the offering. Allen & Company LLC, Needham & Company, LLC and Merriman Curhan Ford & Co. acted as co-managers of the offering.

These shares are being issued pursuant to an effective shelf registration statement. This press release does not constitute an offer to sell or a solicitation of an offer to buy nor will there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. Printed copies of the final prospectus supplement and base prospectus relating to the offering may be obtained from William Blair & Company, L.L.C., Prospectus Department, 222 West Adams Street, Chicago, Illinois 60606, (312) 236-1600. Cardica has filed a final prospectus supplement relating to the offering with the SEC, which is available along with the base prospectus filed with the SEC in connection with the shelf registration on the SEC's website at https://www.sec.gov/.