“No other company in this sector
can equal our proven record of
product development, regulatory
approvals and market success.”

ITC’s revenue growth in 2004 was driven by increased market share for its ProTime and HEMOCHRON product lines. This growing market presence also resulted from the successful transition to a direct sales force for the U.S. hospital market. In addition, ITC generated momentum with new products and a stronger presence in Europe, and by gaining a foothold in the potentially significant group purchasing market.

Creating Value for Patients
and Shareholders
For nearly 30 years, Thoratec has pioneered the development of the most technologically advanced devices to address the growing need to treat late-stage heart failure, a disease that strikes a large and increasing number of people every year. Our ability to deliver continuously improving solutions is unmatched in our industry. No other company in this sector can equal our proven record of product development, regulatory approvals and market success.

Our vision will be realized as we further our already meaningful presence in emerging and new markets, and gain access to a greater number of patients by offering a broader range of more effective and durable solutions. Our strategy also encompasses the development of an ever-growing array of services and support for customers and patients that will further solidify our competitive position.

As we enter 2005, your Company has the critical assets—including technology, financial resources and people—to build upon our already strong position. As we leverage the market presence of our core product lines, we are also taking a leadership role in the development of emerging therapies and technologies, and determining how they can complement our devices.

We are always mindful that the primary beneficiary of what we do is the late-stage heart failure patient. As HeartMate II patient Everado Flores (age 20), said, “I owe my life to the HeartMate II. Now I can go out to the park, I can play baseball and I go bowling. I’m not in the hospital and I’ve gone back to my normal life.”

We continue to pursue excellence and implement strategies that will build long-term shareholder value. We appreciate your interest and support and look forward to reporting on our future success.

D. Keith Grossman
President and Chief Executive Officer

© 2005 Thoratec Corporation
Design: Howry Design Associates SF/CA