AtriCure (ATRC)

ITEM 2. PROPERTIES

We maintain our headquarters in West Chester, Ohio in a facility of approximately 12,200 square feet, which contains primarily office space. We currently pay monthly rent of approximately $11,000 and the lease for this facility expires in May 2009. In addition, we have five separate leases for a total of approximately 31,000 square feet of office, production and warehouse space in West Chester, Ohio, with an aggregate monthly rent of approximately $19,000 and three of the leases for these facilities expire in 2010 and the other two are renewable annually. We believe that our existing facilities are adequate to meet our immediate needs and that suitable additional space will be available in the future on commercially reasonable terms as needed.

ITEM 2. PROPERTIES

We maintain our headquarters in West Chester, Ohio in a facility of approximately
12,200 square feet, which contains primarily office space. We currently pay monthly rent of approximately $11,000 and the lease for this facility expires in May 2009. In addition, we have five separate leases for a total of approximately 31,000
square feet of office, production and warehouse space in West Chester, Ohio, with an aggregate monthly rent of approximately $19,000 and three of the leases for these facilities expire in 2010 and the other two are renewable annually. We believe
that our existing facilities are adequate to meet our immediate needs and that suitable additional space will be available in the future on commercially reasonable terms as needed.

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ITEM 3. LEGAL PROCEEDINGS

We are not party to any material pending or threatened litigation, except as
described below:

Class Action Lawsuit

SIZE="2">We and certain of our current and former officers were named as defendants in a purported securities class action lawsuit filed in the United States District Court for the Southern District of New York (Levine v. AtriCure, Inc., Case
No. 06 CV 14324 (United States District Court for the Southern District of New York)). The suit alleges violations of the federal securities laws and seeks damages on behalf of purchasers of our common stock during the period from our Initial
Public Offering in August 2005 through February 16, 2006. We believe that the allegations are without merit and intend to vigorously defend against them. Our motion to dismiss the lawsuit for lack of subject matter jurisdiction was denied
in September 2007 and a motion for reconsideration of that denial is pending.

We may from time to time become a party to additional legal
proceedings.

ITEM 2. PROPERTIES

We maintain our headquarters in West Chester, Ohio in a facility of approximately 12,200 square feet, which contains both office and warehouse space. We currently pay monthly rent of approximately $11,000 and the lease for this facility expires in May 2009. In addition, we have four separate leases for a total of approximately 26,000 square feet of office, production and warehouse space in West Chester, Ohio, with an aggregate monthly rent of approximately $17,000 and three of the leases for these facilities expire in 2010 and the other is renewable annually. We believe that our existing facilities are adequate to meet our immediate needs and that suitable additional space will be available in the future on commercially reasonable terms as needed.

ITEM 2. PROPERTIES

We maintain our headquarters in West Chester, Ohio in a facility of approximately 12,200 square feet, which contains both office and warehouse space. We currently pay monthly rent of approximately $10,000 and the lease for this facility expires in May 2009. In addition, we have three separate leases for a total of approximately 23,300 square feet of office, production and warehouse space in West Chester, Ohio, with an aggregate monthly rent of approximately $15,000 and each lease for these facilities expires in 2010. We believe that our existing facilities are adequate to meet our immediate needs and that suitable additional space will be available in the future on commercially reasonable terms as needed.