WorldHeart Reports Second Quarter 2007 Financial Results

    - Levacor(TM) Rotary VAD Advancing Towards U.S. Trials -

    OAKLAND, Calif., Aug. 8 /CNW/ -- World Heart Corporation (WorldHeart)
(Nasdaq: WHRT, TSX: WHT), a developer of mechanical circulatory support
systems, today reported its second quarter 2007 financial results.
    Revenue for the second quarter ended June 30, 2007 was $0.8 million,
compared with revenues of $3.0 million reported in the second quarter ended
June 30, 2006.  For the six month periods ended June 30, 2007 and June 30,
2006 revenues were $1.7 million and $6.3 million, respectively.  The decrease
in revenue resulted from the Company's decision, in the fourth quarter of
2006, to discontinue the RELIANT Trial and reduce commercial activities
associated with its first-generation Novacor(R) LVAS and to focus its efforts
on the next-generation Levacor Rotary VAD, for which sales have not yet
    The net loss for the 2007 second quarter was $4.5 million, or $0.39 per
share, compared with a net loss of $3.9 million, or $0.70 per share, in the
prior year's second quarter.  For the six month period ended June 30, 2007,
the net loss was $7.9 million, or $0.69 per share, compared with a net loss of
$7.3 million, or $1.32 per share, in the first six months of 2006.  The
increase in the net loss for the 2007 periods, compared with the 2006 periods,
was the result of lower revenue offset partially by reduced operating
expenses.  The decrease in the net loss per share was partially the result of
the increase in common shares outstanding resulting from the private placement
of common shares during the fourth quarter of 2006.  The weighted average
shares outstanding used to calculate the loss per share in both years were
adjusted for the Company's one-for-ten reverse share split during the second
quarter of 2007.
    "Following initial clinical success in Europe last year with our Levacor
VAD, we are focused on activities leading to the start of a U.S. feasibility
trial with the Levacor," said Jal S. Jassawalla, President and Chief Executive
Officer of WorldHeart.  "We are making excellent progress in our development
activities and have had discussions with the FDA about our preclinical
qualification program.  Patients are currently being screened in Canada and we
plan to begin a U.S. feasibility trial in late 2007 or early 2008."
    Additional Financial Information
    WorldHeart's cash and cash equivalents were $6.6 million at June 30,
2007, a decrease of $5.6 million from December 31, 2006 and a decrease of $2.5
million from March 31, 2007.  Management plans to maintain reduced spending
levels in the near term, while continuing to focus its resources on the
Levacor VAD.  The Company is also fully assessing various financing
alternatives, including equity financing transactions as well as corporate
collaborations, to strengthen its balance sheet.
    Selling, general and administrative expenses for the three months ended
June 30, 2007 decreased $0.8 million, or 36%, compared with the same period in
2006.  For the six month period ending June 30, 2007, selling, general and
administrative expenses were o 37% lower then the comparable 2006 period.  The
decrease is due primarily to reduced selling expenses for the Novacor LVAS
product in the United States and Europe.
    Research and development expenses for the three months ended June 30,
2007 increased by $0.4 million, compared with the three months ended June 30,
2006. For the six month period of 2007, research and development expenses were
$0.7 million less than in the first six months of 2006.  Higher clinical
expenses were incurred in the first quarter of 2006 associated with the
Levacor clinical implants in Europe.  In addition, the Company conducted
development work on both the Novacor and Levacor products in the first half of
2006. Novacor development work was subsequently discontinued in the fourth
quarter of 2006, with research focused on the Levacor VAD in the first half of
    Recent Events and Highlights
    Efforts are currently directed towards completion of preclinical
qualification activities in advance of the planned clinical trial. Refinements
to external system components, intended to enhance system ergonomics and
improve the quality of life of VAD recipients, have been implemented. 
Manufacturing capabilities in WorldHeart's Salt Lake City facility are being
enhanced, including expansion of clean room space. Specific recent activities
     *  In July 2007, WorldHeart announced a successful animal implant of a
        miniaturized, pediatric, ventricular assist device, funded by the
        National Institutes of Health.  The PediaFlow VAD design is also the
        platform for a future minimally invasive adult VAD, intended to meet a
        large clinical need for earlier-stage heart failure patients.
     *  In June 2007, WorldHeart presented Levacor VAD initial clinical
        results and other related technical developments at the American
        Society of Artificial Internal Organs (ASAIO) Annual Conference held
        in Chicago.
     *  In May 2007, WorldHeart met with the FDA to discuss the Levacor VAD
        program, the pre-clinical qualification plan and program timeline. A
        pre-IDE submission was sent to the FDA in conjunction with this
        meeting. A clinically focused pre-IDE submission and meeting are
        planned, followed by an IDE submission.
     *  In April 2007, WorldHeart participated in and exhibited at the ISHLT
        meeting.  Clinicians showed strong interest in the Levacor VAD and
        participation in upcoming clinical trials.
     *  In March 2007, WorldHeart announced a Levacor Clinical Trial
        Coordinating Committee of six leading heart failure cardiologists and
        cardiac surgeons.
    About the Levacor VAD
    The Levacor VAD is a next-generation rotary VAD.  It is the only
bearingless, fully magnetically levitated implantable centrifugal rotary pump
in clinical trials.  An advanced, continuous-flow pump, the Levacor uses
magnetic levitation to fully suspend the spinning rotor, its only moving part,
inside a compact housing.  The proprietary levitation technology employs a
unique arrangement of magnetics expected to provide optimal system simplicity
and reliability.  In contrast to pumps with blood-immersed mechanical or
hydrodynamic bearings, full magnetic levitation eliminates wear within the
pump as well as dependence on blood properties for rotor suspension, and is
expected to provide improved blood compatibility by allowing greater
clearances around the rotor and more idealized flow patterns across a wider
range of operation.  The Levacor VAD has been designed with a high safety
profile and robust range of operation to address the needs of current and
future heart-failure patients.
    Interested parties may join today's teleconference at 8:30 a.m. Pacific
time by dialing 866-362-5158 (for North America callers) or 617-597-5397 (for
callers outside of North America) and indicating passcode 38987146 at least 10
minutes prior to the start time.  A telephonic replay of the call will be
available for one week beginning approximately one hour after the call's
conclusion at 888-286-8010 or 617-801-6888, accessed with passcode 13477619.
Additionally, the presentation will be Webcast and can be accessed through the
Company's website, at, by first selecting Investor
Relations, then selecting Investor Events and finally selecting the Webcast
    About WorldHeart
    WorldHeart is a developer of mechanical circulatory support systems with
broad-based next-generation technologies.  The Company is headquartered in
Oakland, California, USA with additional facilities in Salt Lake City, Utah
and Herkenbosch, Netherlands.  WorldHeart's registered office is Ottawa,
Ontario, Canada.
    Any forward-looking statements in this release are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995
and include statements regarding the Company's expectations with respect to
the Company's future development plans for its next-generation Levacor VAD and
PediaFlow VAD, including the timing and scope of clinical trials, the
potential scope of use and clinical benefits of these devices, as well as
other statements that can be identified by the use of forward-looking
language, such as "believes," "feels," "expects," "may," "will," "should,"
"seeks," "plans," "anticipates," or "intends" or the negative of those terms,
or by discussions of strategy or intentions.  Investors are cautioned that all
forward-looking statements involve risk and uncertainties, which could cause
actual results to differ materially from those expressed or implied by the
forward-looking statements, including without limitation: delays in
development, preclinical qualification, regulatory approvals and clinical
trials, particularly the Levacor VAD; Destination Therapy adoption rate for
VADs; the need for additional financing; and other risks detailed in the
Company's filings with the United States Securities and Exchange Commission,
including its Annual Report on Form 10-KSB for the year ended December 31,
2006, as amended.

     Condensed Consolidated Balance Sheets
     (United States Dollars - in thousands)

                                            June 30, 2007  December 31, 2006
    Current assets
     Cash and cash equivalents                  $6,575          $12,217
     Trade and other receivables                   660            2,298
     Prepaid expenses                              929              704
     Inventory                                   2,153            3,088
                                                10,317           18,307
    Long-term assets
     Property and equipment                        793              950
     Other assets                                1,145            1,241

    Total assets                               $12,255          $20,498


    Current liabilities
     Accounts payable and accrued liabilities    2,700            3,526
     Deferred revenue and clinical fees            432              470
     Other liabilities                           2,154            1,796
    Total current liabilities                   $5,286           $5,792

    Total shareholders' equity                   6,969           14,706

    Total liabilities and shareholders'
     equity                                    $12,255          $20,498

     Condensed Consolidated Statements of Operations(unaudited)
     (United States Dollars and shares in thousands except per share amounts)

                      Three Months Ended June 30,  Six Months Ended June 30,
                         2007            2006           2007         2006

    Revenue               $849          $2,988         $1,696       $6,273
    Cost of goods sold    (823)         (1,910)        (1,892)      (3,322)

    Gross profit            26           1,078           (196)       2,951

    Operating expenses
     Selling, general and
      administrative     1,457           2,276          3,003        4,732
     Research and
      development        3,136           2,763          5,005        5,662
     Amortization of
      intangibles           48              48             96           96

      Total operating
       expenses          4,641           5,087          8,104       10,490

    Operating loss      (4,615)         (4,009)        (8,300)      (7,539)

    Other income
     (expense)             138             121            393          209

    Net loss applicable
     to common
     shareholders      $(4,477)        $(3,888)       $(7,907)     $(7,330)

    Weighted average
     number of common
     shares outstanding
     basic and diluted  11,507           5,548         11,507        5,548

    Basic and diluted
     loss per common
     share             $(0.39)         $(0.70)        $(0.69)      $(1.32)

For further information:

For further information: Mr. Richard Juelis, +1-510-563-4713, or Ms.
Peggy  Allman, +1- 510-563-4721, both of World Heart Corporation; or Mr.
Stephen Laird  of Genesis Select Corporation, +1-203-341-0214 Web Site:

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