Volcano Corporation Announces $200 Million Share Repurchase Authorization

  Volcano Corporation Announces $200 Million Share Repurchase Authorization

$100 Million To Be Executed via Accelerated Share Repurchase Program

PR Newswire

SAN DIEGO, Dec. 2, 2013

SAN DIEGO, Dec. 2, 2013 /PRNewswire/ --Volcano Corporation (NASDAQ: VOLC), a
leading developer and manufacturer of precision guided therapy tools designed
to enhance the diagnosis and treatment of coronary and peripheral vascular
disease, today announced that its Board of Directors has authorized a $200
million share repurchase program. The Company intends to fund share
repurchases with cash on hand.

As part of the program, Volcano will enter into a $100 million Accelerated
Share Repurchase ("ASR") with J.P. Morgan Securities LLC ("JPMorgan"), as
agent for JPMorgan Chase Bank, National Association, London Branch. Under the
ASR agreement, Volcano will pay $100 million to JPMorgan and will receive from
JPMorgan an initial delivery of 3,557,137 shares of Volcano's common stock.
The final number of shares to be repurchased by Volcano under the agreement
will be determined at the completion of the ASR program and will be based
generally on the daily volume-weighted average share price of the Company's
common stock during a period of up to approximately four months, less an
agreed-to discount. At settlement, the Company may receive additional shares
of common stock from JPMorgan or, under certain circumstances, may be required
to deliver shares of common stock or remit a settlement amount in cash, at the
Company's option, to JPMorgan upon completion of the program. All common
shares repurchased under the ASR program will be retired.

"The Board of Directors believes this repurchase authorization and accelerated
share repurchase program underscores our confidence in Volcano's prospects and
long-term outlook," said Scott Huennekens, President and Chief Executive
Officer of Volcano Corporation. "Volcano's strong balance sheet provides us
with the financial flexibility to return capital to shareholders at an
accelerated rate while continuing to invest in our business and maintaining
our ability to capitalize on external growth opportunities. We will continue
to be disciplined with respect to the allocation of capital and we are
confident that we are taking the right steps to grow the Company and create
value for all Volcano shareholders."

Mr. Huennekens continued, "As we implement our recently announced strategic
reprioritization initiative, we believe Volcano possesses a strong platform
for long-term growth, including intravascular imaging in the peripherals,
expansion of our iFR® offering in Europe and Japan—as well as its anticipated
U.S. roll out in the second half of 2014—and the full market launches of our
Crux® IVC filter, Verrata® FM wire, PioneerPlus™ re-entry catheter and Sync-Rx

The Company expects that additional purchases under the remaining $100 million
of the share repurchase authorization will be made in the open market. Any
open market share repurchases would be made at prevailing market prices using
existing resources. Under the authorization, the Company also retains the
right to make repurchases in block or privately negotiated transactions.
While Volcano expects to take advantage of market conditions, the timing and
extent of any repurchases are subject to the trading price of the Company's
shares and other factors including restrictions relating to volume, price and
timing under applicable law. The repurchase program may be modified,
suspended or terminated at any time by the Company without notice.

About Volcano Corporation

Volcano Corporation (Nasdaq: VOLC) is revolutionizing the medical device
industry with a broad suite of technologies that make imaging and therapy
simpler, more informative and less invasive. Our products empower physicians
around the world with a new generation of analytical tools that deliver more
meaningful information—using light and sound as the guiding elements. Founded
in cardiovascular care and expanding into other specialties, Volcano is
changing the assumption about what is possible in improving patient outcomes
by combining imaging and therapy together. For more information, visit the
company's website at www.volcanocorp.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995. Any statements in
this release that are not historical facts may be considered "forward-looking
statements." These statements include statements regarding the aggregate
amount of the Company's common stock that will be repurchased in the ASR and
the share repurchase program, the timing for any purchases under the program,
the manner in which purchases under the program will be conducted, and the
price of shares purchased under the program, the Company's ability to create
value for its stockholders, the Company's growth, prospects and long-term
outlook, the Company's capital allocation strategy and ability to capitalize
on external growth opportunities, the Company's product and technology
platform, expansion of its product offerings and timing for roll-out or launch
of its products, and the potential benefits of the Company's products and
technologies. Forward-looking statements are based on management's current
expectations and are subject to risks and uncertainties that may cause
Volcano's results to differ materially and adversely from the statements
contained herein. Some of the potential risks and uncertainties that could
cause actual results to differ include market conditions affecting the trading
price and volume of the Company's common stock; unanticipated cash needs
experienced by the Company; the Company's decisions with respect to its
capital allocation strategy; the pace and extent of market adoption of the
Company's products and technologies; unexpected clinical trial results,
including unexpected new clinical data and unexpected additional analysis of
existing clinical data; unexpected regulatory actions or delays or government
regulation generally; the Company's ability to obtain or maintain patent or
other proprietary intellectual property protection; competition in general;
government, industry and general public pricing pressures; unexpected
manufacturing issues; growth strategies; timing and achievement of product
development milestones; outcome of ongoing litigation; the impact and benefits
of market development; product introductions, including delays; unexpected new
data, safety and technical issues; market conditions affecting the Company's
products and technologies; and other risks inherent to medical device
development and commercialization. These and additional risks and
uncertainties are more fully described in Volcano's filings made with the
Securities and Exchange Commission, including our recent quarterly report on
Form 10-Q. Undue reliance should not be placed on forward-looking statements
which speak only as of the date they are made. Volcano undertakes no
obligation to update any forward-looking statements to reflect new
information, events or circumstances after the date they are made, or to
reflect the occurrence of unanticipated events.

SOURCE Volcano Corporation

Website: http://www.volcanocorp.com
Contact: John Dahldorf, Chief Financial Officer, Volcano Corporation, (858)
720-4020, or Neal Rosen, (650) 458-3014
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