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January 13, 2004

Montreux Equity Partners Announces Closing of Life Sciences Focused MEP III Fund

Montreux Equity Partners, a venture capital firm focused on healthcare and life science investing, today announced the closing of a new venture fund, MEP III, at approximately $83 million. The fund will co-invest alongside MEP II and together comprise a total of $160 million of venture capital funds. The closing of MEP III brings funds under management at Montreux Equity Partners to more than $180 million.

The two funds will continue to invest in life sciences companies engaged primarily in the development and commercialization of human therapeutic products, both pharmaceuticals and medical devices. Montreux also will selectively invest in diagnostic companies, as well as discovery-based companies, if accompanied by a lead therapeutic clinical candidate. For therapeutics-based enterprises, the fund will invest in companies with either approved products or products with good \"proof of concept\" and safety data, attractive market potential, a clear path to clinical development, capital efficiency in executing its business plan and an experienced management team.

Montreux\'s two funds will invest in a mix of early and late stage venture rounds, focusing on progress in the product development process. The company will invest alongside other venture capital firms in early human clinical development and commercialization of therapeutic products.

\"We are executing the same investment strategy that began with the investment by the principals of Montreux in Oclassen Pharmaceuticals in the mid 1980s,\" said Daniel K. Turner, III, general partner of Montreux Equity Partners. \"Oclassen produced an approved clinical product and two in the pipeline with just a $25 million investment. The establishment of MEP III allows us to lead investment opportunities and invest up to $10 million in companies over several financing rounds.\"

\"I have been involved with the formation and development of a number of life science companies for more than 30 years, including Collagen Corporation, Target Therapeutics, Prograft Medical, Conceptus and Interventional Technologies,\" said Howard Palefsky, general partner of Montreux Equity Partners. \"Regardless of when these companies were formed, they were focused on the development of therapeutic products with excellent clinical data, solid intellectual property and in a capital efficient manner.\"

About Montreux Investments: Some of the life sciences investments in the existing MEP funds that exemplify the firm\'s investment strategy include:

NeurogesX - a privately held clinical stage company, based in San Carlos, CA, developing therapeutic agents for the treatment of pain. Coalescent Surgical - a privately held revenue stage medical device company, located in Sunnyvale, CA, developing and commercializing devices to unify body tissues in minimally invasive and conventional surgeries. Peninsula Pharmaceuticals - a privately held clinical stage company, located in Alameda, CA, focused on licensing and developing clinical stage anti-infective products. Enteric Medical - a private gastrointestinal products company, located in Foster City, CA, that developed bulking agents for the treatment of gastro-esophageal reflux disease (GERD); the company was acquired by Boston Scientific in 2002. TransOral Pharmaceuticals - a privately held specialty pharmaceutical company, located in Corte Madera, CA, developing products based on its proprietary drug delivery system. Pulmonx, Inc. - a privately held medical device company, located in Palo Alto, CA, developing pulmonary devices to treat emphysema. Novacardia, Inc. - a privately held biopharmaceutical company, based in San Diego, CA, developing therapeutic agents for patients with cardio-renal diseases.

About Montreux Equity Partners: Montreux Equity Partners, founded in 1993, is a venture capital firm specializing in early stage healthcare and life sciences companies. The MEP III fund is the third in a series of venture funds raised by Montreux Equity and is focused on life sciences and healthcare investing. The investment team at Montreux Equity Partners includes Dan Turner, Howard Palefsky, Manish Chapekar and John Savarese, M.D. The firm\'s investment team brings more than 60 years of operating and investing experience as entrepreneurs, managers and investors to their portfolio companies. Montreux Equity Partners has offices located in Menlo Park, Calif. For more information about Montreux Equity Partners, visit