Given Imaging Announces 2005 Medicare Reimbursement Rates For PillCam Endoscopy

YOQNEAM, Israel, Nov. 3 /PRNewswire-FirstCall/ -- Given Imaging announced today the release of 2005 reimbursement rates for PillCam (TM) SB capsule endoscopy by the Center for Medicare and Medicaid Services (CMS) as well as the Ambulatory Patient Classification (APC) for outpatient hospital reimbursement.

CMS has established a higher national average global physician payment for PillCam SB endoscopy as part of its Medicare Physician Fee Schedule for 2005. Effective January 1, 2005, the national average global physician payment in the office setting will increase to $985, compared to the 2004 payment of $928. The national average physician payment in the hospital outpatient setting will increase incrementally to $190 compared to the 2004 payment of $185.

In the outpatient hospital setting, PillCam SB procedures have been reclassified, from the New Technology APC 1508 to the clinically homogenous APC 142, Small Intestine procedures. The fee schedule for APC 142 for 2005 is $496, compared to $650 in 2004.

"We are especially pleased by the fee increase for private practices. Our main focus for growth is on the private clinics for the diagnosis of patients with suspected Crohn's disease and Celiac disease who for the most part carry private insurance," said Gavriel D. Meron, president and CEO of Given Imaging. This news further underscores the acceptance of PillCam SB as a standard of care diagnostic tool and should lead to even broader use."

About Given Imaging

Given Imaging is redefining gastrointestinal diagnosis by developing, producing and marketing innovative, patient-friendly products for detecting gastrointestinal disorders. The company is developing a complete line of PillCam video capsules for detecting disorders throughout the gastrointestinal tract. The company's technology platform is the Given(R) Diagnostic System, featuring the PillCam(TM) video capsule, a disposable, miniature video camera contained in a capsule, which is ingested by the patient. The PillCam.SB video capsule is the only naturally ingested method for direct visualization of the entire small intestine. It is currently marketed in the United States and in more than 60 other countries and has benefited more than 145,000 patients worldwide. The PillCam(TM) ESO video capsule, which provides visual examination of the esophagus, has been cleared for marketing by the FDA and a higher frame rate version will be commercialized pending FDA clearance. Additional capsules for visualization of the stomach and colon are under development. Given Imaging's headquarters, manufacturing and R&D facilities are located in Yoqneam, Israel; it has direct sales and marketing operations in the United States, Germany and France, and local offices in Tokyo, Madrid and Sydney. For more information, visit http://www.givenimaging.com/.

This press release contains forward-looking statements about Given Imaging, including projections about our business, our future revenues and our future profitability, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. For example, statements in the future tense, words such as "anticipates," "estimates," "expects," "intends," "plans," "believes," and words and terms of similar substance used in connection with any discussion of future operating or financial performance identify such forward-looking statements. Those forward- looking statements are not guarantees of future performance and actual results could differ materially from our current expectations as a result of numerous factors, including but not limited to the following: changes in regulatory environment, our success in implementing our sales, marketing and manufacturing plan, protection and validity of patents and other intellectual property rights, the impact of currency exchange rates, the effect of competition by other companies, the outcome of future litigation, the reimbursement policies for our product from healthcare payors, quarterly variations in operating results, the possibility of armed conflict or civil or military unrest in Israel and other risks disclosed in our filings with the U.S. Securities Exchange Commission.

Given Imaging

CONTACT: Yoram Ashery of Given Imaging Ltd.; or Fern Lazar,flazar@lazarpartners.com, or David Carey, dcarey@lazarpartners.com, both ofLazar Partners Ltd., 1-866-GIVEN-IR

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