GISH BIOMEDICAL, INC.                                               NEWS RELEASE

22942 Arroyo Vista
Rancho Santa Margarita, CA  92688

Contact: Kelly D. Scott, President and CEO
(949) 635-6200

GISH BIOMEDICAL REPORTS RESOLUTION OF CONTRACTOR DISPUTE

Rancho  Santa  Margarita,  California - March 12, 2003 - Gish  Biomedical,  Inc.
(Nasdaq: GISH)

During the three  months  ended March 31, 2001 the  Company  relocated  to a new
operating  facility  in Rancho  Santa  Margarita,  California.  The  Company had
challenged  the  accuracy  and  validity  of the  billings  by  the  improvement
construction  contractor.  This dispute was submitted to binding arbitration and
the  Company  received  the  arbitration  decision  on February  24,  2003.  The
arbitrator's decision was contested by the improvement  construction contractor,
but on March 11, 2003 the arbitrator  confirmed that there would be no change in
his  original  decision.  The  original  claim by the  improvement  construction
contractor was for $2,364,000 and the arbitration award was for $1,821,000, less
amounts  the  Company  has  paid  to or  for  the  benefit  of  the  improvement
construction  contractor.  The effect of the award as of December 31, 2002 would
have been a reduction in accrued relocation liabilities of $255,000, a reduction
in the  recorded  cost of  construction  of $212,000 and a reduction in expenses
related to the arbitration of $43,000. Additionally, the result of this award is
that  the  Company  owes no  further  amounts  to the  improvement  construction
contractor.

Gish Biomedical designs and manufactures  disposable medical devices for various
surgical  specialties  including   cardiovascular  surgery,   orthopedics,   and
oncology.   Currently  there  are  3,652,145   shares  of  Gish's  common  stock
outstanding.

This news release contains  forward-looking  statements concerning the Company's
business  and  products.  Actual  results may differ  materially  depending on a
number of risk factors,  including the impact of competition,  downward  pricing
pressures in the relevant markets,  risks related to product performance and the
risks relating to consumer acceptance of the Company's products. These and other
risks  inherent  in the  Company's  business  are  described  in  the  Company's
Securities and Exchange Commission filings,  including its Annual Report on Form
10-KSB.  The Company  undertakes  no  obligation  to revise the  forward-looking
statements  contained herein to reflect events or  circumstances  after the date
hereof or to reflect the occurrence of unanticipated events.