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July 14, 2004

SkinMedica Raises Additional $40 Million Financing; Company Closes Acquisition of VANIQA Pharmaceutical Product

SkinMedica®, Inc., a specialty pharmaceutical company developing and commercializing dermatology products, announced today it closed an extension of its Series D round with an additional placement of $30 million in preferred stock, bringing the total round to $56 million. Perseus-Soros BioPharmaceutical Fund led the round, and major new investors participating in the extension include HealthCare Ventures and Montreux Equity Partners. Additional Series D investors include existing investors St. Paul Venture Capital, Apax Partners, Inc., Domain Associates, LLC, and others. In addition to the private equity raised, $10 million in debt financing was provided by Silicon Valley Bank. The Series D funding is being used to acquire and market the pharmaceutical product VANIQA® and to support ongoing business development activities related to expanding SkinMedica\'s product portfolio.

In connection with the fundraising, SkinMedica completed the acquisition of all U.S. and certain international rights to VANIQA (eflornithine hydrochloride) Cream, 13.9% from Women First HealthCare. VANIQA is the only prescription pharmaceutical product approved by the U.S. Food and Drug Administration to slow the growth of unwanted facial hair in women. The $36.6 million transaction was finalized on Monday, allowing SkinMedica to prepare to re-launch the product at the American Academy of Dermatology conference later this month in New York.

\"SkinMedica\'s unique combination of pharmaceutical scientific expertise and success in the cosmeceutical market makes it the ideal company to acquire VANIQA,\" said Eric Aguiar, M.D., Partner at HealthCare Ventures and newly appointed director of SkinMedica. \"We believe VANIQA has significant potential and welcome this opportunity to partner with SkinMedica as it expands its line of pharmaceutical and cosmeceutical products and continues to grow its revenue stream.\"

\"Eric Aguiar from HealthCare Ventures and Dan Turner and Howard Palefsky from Montreux Equity Partners have joined our team at a very exciting time,\" said Rex Bright, President and CEO of SkinMedica, Inc. \"SkinMedica is seizing opportunities to build our portfolio of differentiated products that address a large and growing market, and we\'re eager to immediately put marketing muscle behind VANIQA and present it to the dermatology community in the coming weeks.\"

About SkinMedica SkinMedica is a privately held specialty pharmaceutical company marketing both prescription and cosmeceutical dermatology products. SkinMedica\'s EpiQuin(TM) Micro Cream (4% Hydroquinone) treats melasma and postinflammatory hyperpigmentation, and VANIQA (eflornithine hydrochloride) Cream, 13.9% is the only FDA-approved prescription product for the treatment of unwanted facial hair in women. The company\'s full line of cosmeceutical products, which is sold through physicians, includes TNS Recovery Complex® with NouriCel-MD(TM) to help improve the health and appearance of aging skin. SkinMedica is based in Carlsbad, California. For information, visit:

VANIQA®, EpiQuin(TM), TNS Recovery Complex® and SkinMedica® are trademarks of SkinMedica, Inc.