Singular focus. MEDICAL CAPITAL GROUP Interdisciplinary approach.

DEEP ROOTS BROCHURE CLEAN! 3-9.indd 1 3/10/08 10:49:48 AM Medical. Healthcare. Period.

Medical Capital Group provides capital and services to investors and entre- a world of “one-stop-shopping” investment banks, We are highly regarded as the only firm of our kind Medical Capital Group’s expertise gives investors such staffed by such a diversity of talented specialists. preneurs in the medical and healthcare industry, and only that industry. Our specialized knowledge a tremendous advantage. Many are experienced entrepreneurs who have allows us to identify opportunities based on strength of technology, competitive advantage, founded and run medical technology companies. So size of market, and potential margin upon commercialization. With an interdisciplinary team Our singular focus gives us unique insight into the when you work with MedCap, you are able to see the business, science, and financial strategies of the same opportunity from multiple expert points of view. approach – financial, clinical, scientific, and business – we create the optimal environment for a medical marketplace. Our deep understanding of medical innovation’s long-term success. diseases, treatments, standards of care, the regulatory The MedCap team is environment, and intellectual property completely sets lead by founder Chris- us apart. At MedCap we are specialists. And because topher Velis, Chairman More people are living longer, and expect those of that we capitalize on opportunities others miss, get and Chief Executive years to be active. This well-documented shift in results where others fail, and make superior decisions Officer, and John demographics makes the medical industry ripe on behalf of our investors. Brooks III, President for investment. Medical Capital Group offers two and Managing Direc- opportunities to invest with intelligence in this highly- tor. Combined they technical market. Our Incite Medical Funds are An Interdisciplinary approach to getting results. Medical Capital Group services the entire investment lifecycle have nearly fifty years of healthcare and technology and private equity vehicles that allow investment experience and have executed hundreds of Much like a tree, there are many factors that must be you to participate in a select handful of proprietary transactions. Their experience proves invaluable for in place for a medical innovation to properly develop nascent stage investments. Or you can invest in Medi- the most complex and challenging projects. cal Capital Group the company to participate in all and thrive. Success in this market requires more than our funds and investment banking activities. HEDGE FUND just investment of money, but also time, resources, Beyond our leadership and stellar team, we are in SERVICES and expertise. Fundless Sponsor constant contact with a global network of doctors, MedCap Group develops opportunities at every stage NACENT STAGE scientists, engineers, division heads, and senior execu- of the investment lifecycle, but our goals are always INVESTMENTS MEDCAP Merchant Banking Our interdisciplinary team tives; leaders whose decisions impact our investments the same: reliable returns for investors, widespread ADVISORS and investors. In short, we don’t just observe the product adoption for innovative firms, and improved market, we take an active role in defining it. health and quality of life for patients. We believe that when medicine moves forward, everybody wins. INCITE FUNDS INVESTMENT We pride ourselves on bringing this interdisciplinary Venture Capital / Private Equity Venture Capitalists BANKING approach to the entire lifecycle of our investments. Capital Raise Because no matter how much potential an innovation Success in the medical industry demands expertise. Mergers & Acquisitions Investment Bankers Senior Executives has to improve health and quality of life, it needs all MEDCAP On one hand, medical innovations are often greeted VALUATION Physicians the pieces in place – capital, resources, expertise – at with widespread enthusiasm. On the other hand, DEVELOPMENT SERVICES every step of the way in order to succeed. This is the they face many daunting challenges on their way to 409 & Fairness Opinions Medical Capital Group advantage. Scientists Marketing Professionals market. It is a business like no other. That is why in

Engineers

MEDICAL CAPITAL GROUP

DEEP ROOTS BROCHURE CLEAN! 3-9.indd 2-3 3/10/08 10:49:50 AM We build businesses around innovations.

Auris Surgical Medical Capital Development forms collaborative, equitable partnerships with individuals and We work hard. Then we work more. Robotics institutions who have discovered effective therapies and technologies that completely At MedCap, our partners get one-on-one attention. disrupt the market. We are not an incubator of shared resources. Far from Auris is a joint venture it. To work with us, we must accept the project – and with Columbia Univer- the criteria is extremely stringent. But once accepted, we will give it everything we’ve got. sity’s Department of BioEngineering. Our interdisciplinary team explores and analyzes how Columbia has commit- best to bring the product to market. We are adept ted IP, engineers, at the entire process, including establishing solid IP and lab space to the and patent positions, as well as recruiting CEOs, development of robotic management teams, and board members. Product devices for precision ear and eye surgery. This development and marketing strategies are written and technology enables surgeons to perform proce- rewritten. Business models are built, torn down, and dures that would otherwise be extremely high risk built again until finally we have a comprehensive busi- or even impossible. Genuine partnerships, in word and deed. ness plan. Then we get feedback from our proprietary network of medical and business leaders and revise There is a simple reason top hospitals, universities, MedCap Development has provided seed financ- some more. We don’t stop working until all the part- scientists, physicians, and engineers come to MedCap ing, recruited experienced senior executives, and ners, and the best minds we know, agree it is perfect. to turn their discoveries into businesses – fear. developed comprehensive strategic and commer- cialization plans. This project is well on the way Here’s an example, a university lab makes a truly Resources to focus on “R,” while we work on “D.” to being a success for Columbia and MedCap’s significant medical discovery. Think of what that Our relationships operate in mutual interest with investors, and a near miracle for patients who’ve could mean to the institution’s future in terms of Innovators come to us to handle the business side. economic equality and transparency. We want our lost their hearing or are at risk for blindness. money, prestige, grants, and its ability to recruit That includes seed financing, but also all the distract- partners to profit from their discoveries, and we put it students and notable faculty. They are terrified of ing details that can bring research and cash flow to a writing. Why are we the only firm that does this? We not getting it right. What’s more, they’re not in the grinding halt. We have all the practical infrastructure have no idea. But because we do, we’ve forged lasting business of building businesses, so they need to find in place: office space, laboratory access, IT support, relationships with many of the most gifted innovators a partner. Of course that decision is based upon a investment banking, support staff, payroll, etc. Every- and prominent institutions. Being ethical is smart proven record, but a pristine reputation is key. In thing. From day-one the business hits the ground business that creates a flow of outstanding opportuni- both regards, MedCap excels. running with its innovators focused on their discovery. ties for MedCap’s investors.

MEDICAL CAPITAL Nascent Stage Cultivation DEVELOPMENT

DEEP ROOTS BROCHURE CLEAN! 3-9.indd 4-5 3/10/08 10:49:53 AM An intelligent way to invest in a complex industry.

Insulet The Incite Medical Funds are private equity and venture investment funds designed to give inves- tors access to an industry full of opportunity and complexity. Medical technology is a $500 billion global industry growing in excess of 10% per year. Even in a weak economy, the strength in demand In true entrepre- for new products has pushed acquisition prices to ever-higher levels. The challenge for investors neurial fashion, John is that to understand the technologies and recognize the opportunities. That takes the insights of Brooks and a colleague doctors, scientists, and engineers. And that’s exactly what MedCap’s Incite Funds give you. conceived of a dispos- able insulin delivery system on a napkin know about because they haven’t even happened yet. during a flight from MedCap has direct access to management teams, the West Coast in the owners, detailed business plans and management Spring of 2000. A business plan was created, projections. We maintain a propriety database of and Prism, the venture capital firm that John is more than 6,500 private firms. We participate in more a founder of, made an initial seed investment in than 30 professional meetings and conferences every August of 2000. year. We understand this industry from the inside.

The company raised over $100M in five rounds of We know these are great investments because we A market rich with opportunities, if you can find them. financing as it matured into a major player in the helped make them great. insulin pump business. Insulet went public in the Over the past ten years, much of the innovation in spring of 2007, resulting in an over 600% return this market has been achieved by smaller, widely Action not algorithms. We are deeply engrained to the Prism investors. scattered, privately held companies. Very little infor- in every company the funds will invest in. There is mation is publicly available about these companies, nothing passive about our approach. We cultivate our Focus within focus. and only a few are followed in an organized manner proprietary investments with capital, resources and by the investment banking community or other interdisciplinary expertise to ensure they bear fruit. These funds are being established to primary target private equity funds. Often, the first investors hear For us private equity is sweat equity. effective treatments of degenerative diseases for a of them is when they are acquired by larger strategic growing and aging world population. Unlike other companies. Then it’s too late. In fact, 90% of exits Yes, we have an exceptional track record in selecting venture funds, the Incite Funds will define 50% of are M&A rather than IPO. investments. But investments don’t garner a return their portfolios before the first dollar is invested. until they are sold. So each investment is driven by Companies will cross subsectors of devices and Due to our reputation, expertise and global network an exit strategy with a strategic partner with whom healthcare services, and each will be proprietary to of contacts, Medical Capital Group enjoys significant we have an open dialogue. What sets MedCap MedCap. However, investors will have the opportu- high-quality deal flow. Many come to us for Incite Funds apart is how we are constantly paving nity to review principle investments prior to capital preliminary advice. That puts us in the position to the way to a premium exit throughout the entire commitment. seize undervalued opportunities that no other firms lifecycle of the investments.

MEDICAL CAPITAL Incite Medical Funds DEVELOPMENT

DEEP ROOTS BROCHURE CLEAN! 3-9.indd 6-7 3/10/08 10:49:54 AM Invest in our unique approach to investing. STRATEGIC BUYERS PRIVATE EQUITY CLIENTS

· Arthrosurface · BioVentures · Biomet · Boston Millennia Investing in Medical Capital Group the company is another way you can benefit from our · Covidien partners unique approach and respected position in the medical industry. You will participate in all itera- · Genzyme · Crossbow Equity Partners tions of the Incite Medical Funds. But you will also be part of all our business activities, including · Johnson & Johnson · Galen Partners our well-established and highly successful investment banking and consulting practice, Medical · Medtronic · GE Capital Investments Johnson & Johnson · Olympus · Capital Advisors. development Corp. · Orthofix · MB Ventures We are expert matchmakers, aligning objectives and · Stryker · Piper Jaffray Venture completing even the most complex transactions. · Synthes partners · Zimmer · Point Judith Capital A hands-on approach to self-generating growth. · Prism Ventures · US Bancorp We believe the result of a transaction takes shape long before the transaction occurs. Our interdisciplinary approach puts a company in the best possible position. Working so closely, quite often bonds are Medical Capital Advisors – the core of our business. stuck between us and the exiting management team. When the transaction is complete, it is not unusual MedCap Advisors provides sophisticated strategic for us to place this proven CEO into one of MedCap and investment banking advice to leaders in the medi- Development’s investments. And they build success cal technology sector. It is a full-service practice that again. Only this time with more experience, and much provides the highest level of market insight to firms to the benefit of MedCap investors. who wish to gain access to capital through merger, acquisition, private equity/venture capital financing, valuation services, or strategic partnership. In short, All the elements of a smart investment. we help generate premiums for companies seeking A unique and effective approach that disrupts the exits and shareholder liquidity. industry. A stellar reputation. Proven management backed by a team with diverse expertise. A broad base Because of our reputation as industry specialists, and of clients and services. An established and rapidly track record for results, we enjoy tremendous deal growing revenue stream. A clearly mapped path to flow. Clients know we understand their company’s industry leadership. Every element that you look for technology, strategy, and industry position. They also to judge an investment you’ll find in Medical Capital know that we have wide-spread and deep relation- Group. Invest in us and grow with us. ships with major strategic buyers around the globe.

MEDICAL CAPITAL Investment Banking and Consulting ADVISORS

DEEP ROOTS BROCHURE CLEAN! 3-9.indd 8-9 3/10/08 10:49:58 AM Christopher J.P. Velis Founder, Chairman & CEO

Prior to founding Medical Capital Group, Brothers, he was a Partner at Mirus Mr. Velis was a founding partner, board Capital Advisors, and began his career in member, and managing director at Corporate Finance at Merrill Lynch. HealthpointCapital, a $200M private equity fund and merchant bank special- Mr. Velis holds series 7 and 24 licenses izing in medical technology investments. with the NASD, and a BA in Economics Prior to that, he was head of Medical from the University of Massachusetts Technology Investment Banking at Brown at Amherst. He has an MBA from the Brothers Harriman & Co. There, he was Boston University Graduate School of instrumental in the creation and growth Management, where he has been a guest of that practice as well as sourcing and lecturer on strategy and entrepreneur- structuring the firm’s three private equity ship for seven years. He is also frequent and mezzanine funds. Previous to Brown speaker at international medical industry conferences.

John L. Brooks III President and Managing Director

Prior to Medical Capital Group, Mr. Mr. Brooks has co-founded three Brooks was a founder of PrismVenture- paradigm-shifting life sciences start-ups works. He was responsible for healthcare -- Songbird Hearing, Locus Pharmaceuti- investments for Prism’s six funds, cals, and Insulet. He is a member of the aggregating over $1.25B. Mr. Brooks is Board of Associates for the Whitehead currently on the Board of Directors of Institute, is on the Draper BioAdvisory Confirma, MedManage Systems, Uptake Board, and is the Vice Chair and Finance Medical, and Optiscan. Previous to Chair of the Joslin Diabetes Clinic. He Prism, Mr. Brooks served as a General is also a member of MassMedic’s Ignite Manager at Pfizer/Valleylab where he board, as well as the M2D2 Medical developed and executed a strategy for technology initiative. Mr. Brooks holds an minimally invasive surgery. With Pfizer/ MS in Business and a BBA cum laude Strato, he led the growth of an evolving from the University of Massachusetts vascular access business. at Amherst. He is a CPA and a Certified Financial Planner.

MEDICAL CAPITAL GROUP

DEEP ROOTS BROCHURE CLEAN! 3-9.indd 10-11 3/10/08 10:50:00 AM MEDICAL CAPITAL GROUP

MEDICAL CAPITAL DEVELO PMENT

MEDICAL CAPITAL ADVISORS

1050 Winter Street, Suite 1000 T 781-839-7364

Waltham, MA 02451, USA www.medcapadvisors.com

DEEP ROOTS BROCHURE CLEAN! 3-9.indd 12 3/10/08 10:50:03 AM