MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
World Heart Corporation and its subsidiaries are collectively referred to as "WorldHeart" or the "Corporation".
The following discussion explains material changes in the Corporation's financial condition and results of
operations for the year ended December 31, 2002 with comparisons to the years ended December 31, 2001
and 2000. Such discussion and comments on the liquidity and capital resources of the Corporation should be
read in conjunction with the information contained in the consolidated financial statements and related notes to the
financial statements of the Corporation. In this discussion, references to "dollars" or "__DOCTEXT__quot; or "Cdn __DOCTEXT__quot; are to
Canadian dollars and references to "US dollars" or "US__DOCTEXT__quot; are to United States dollars.
The discussion and comments contained herunder, include both historical information and forward-looking
information. The forward-looking information, which generally is information stated to be anticipated, expected,
or projected by the Corporation, involves known and unknown risks, uncertainties and other factors that may
cause the actual results and performance of the Corporation to be materially different from any future results and
performance expressed or implied by such forward-looking information. Potential risks and uncertainties include,
without limitation, the uncertainties inherent in the development of new products for use in the human body, the
Corporation's need for significant additional funding, the Corporation's need to establish reimbursement
mechanisms and product acceptance from third-party payers, extensive government regulation of the
Corporation's products, and rapid developments in technology, including developments by competitors.
WorldHeart is a medical device company currently focused on the development and commercialization of
pulsatile ventricular assist devices through operations in Oakland, California, United States and Ott