Health Evolution Partners Launches Innovation Network

Unique Collaboration to Foster Innovation in Healthcare Delivery
SAN FRANCISCO--(Business Wire)--
Health Evolution Partners, a manager of health care investments,
today announced the launch of the Health Evolution Partners Innovation
Network (HEPIN), an investment fund aimed at early stage and venture
companies. Health Evolution Partners has allocated $200 million to
HEPIN as a vehicle for identifying and supporting new ways to
organize, deliver and finance health care. HEPIN is seeking out
leading entrepreneurs and talented investment fund managers to build
up the "best of the best" in health care innovations and to bring them
into mainstream health practices.

"We face a troubling innovation gap in health care," said David J.
Brailer, MD, PhD, chairman of Health Evolution Partners. "Too few of
our biomedical discoveries make it into daily practice because we
organize and deliver care the same way we did 100 years ago."

Health Evolution Partners appointed Roy Ziegler to direct HEPIN's
early stage investing activity. Mr. Ziegler has 25 years of experience
as an entrepreneur, venture fund partner, manager and board member of
technology-driven healthcare companies. During his career, he has held
executive positions with Partech International, First Consulting Group
and Accenture.

Health Evolution Partners has also named advisors to support HEPIN
investment activities. Each HEPIN advisor has deep experience and a
passion for innovation in health care. HEPIN advisors include:

-- Richard H. Carmona, MD, MPH, FACS, 17th Surgeon General of the
United States (2002-2006), Vice Chairman of Canyon Ranch;
President, Canyon Ranch Institute; Distinguished Professor
Zuckerman College of Public Health, University of Arizona;

-- David M. Lawrence, MD, former chairman and CEO of Kaiser
Permanente;

-- Arnold Milstein, MD, MPH, co-founder of The Leapfrog Group;
national leadership in making health care markets conducive to
high value innovations;

-- Molly J. Coye, MD, MPH, founder and CEO of The Health
Technology Center.

"Health Evolution Partners is bringing a fresh perspective and
deep insight to its investing activity," said Dr. Milstein. "Carefully
selected venture fund partners coupled with the advisors' breadth of
experience and knowledge will result in bringing to market tools and
technologies that can accelerate creation of a more efficient, higher
quality and consumer-focused health care system."

Health Evolution Partners also announced that it completed
investments in two venture funds, Cardinal Partners and the Psilos
Group. Over the next year, three to four more investments will be made
in leading health care venture funds. These funds will work closely
with Health Evolution Partners and with each other to bring solutions
and technologies from concept to widespread national use.

"Innovative new health care technologies offer tremendous
opportunities to improve the U.S. health care system," said Albert S.
Waxman, PhD, senior managing member of Psilos. "Our collaboration with
Health Evolution Partners will help bring those innovations to
commercial success."

"We have been proud of the leading role we have played in the
formation of important healthcare companies," said John Clarke,
managing partner of Cardinal Partners. "But it hasn't always been easy
to find experienced, compatible collaborators in these highly
specialized healthcare market spaces. We believe our participation in
the Health Evolution Partners Innovation Network represents an
unparalleled pooling of experience and expertise in the complex and
ever-changing healthcare landscape."

"Cardinal Partners and the Psilos Group are top tier venture funds
with exceptional investment track records in the health care
industry," said Brailer. "We will partner with them and other strong
health care venture funds to build the best companies in health care
and deliver the best return for our investors."

About

Health Evolution Partners

Health Evolution Partners is a health care investment manager
founded in 2007. Health Evolution Partners invests across the health
care industry, from early stage to buyouts and from services to
technologies. It is seeking companies that can lead and become
valuable in the new era of value-based, cost-effective and
consumer-driven health care. To learn more about Health Evolution
Partners, visit www.healthevolutionpartners.com.

Cardinal Partners (www.cardinalpartners.com) has been one of the
leading venture capital partnerships focused exclusively on healthcare
investing since 1996. Cardinal specializes in early stage financing
rounds, usually as the lead investor in the initial financing round of
a growth company. Since 1997, companies funded by Cardinal have a
cumulative market valuation exceeding $6 billion. Cardinal currently
manages funds totaling $330 million.

Psilos Group (www.psilos.com), founded in 1998, is a
healthcare-focused venture capital firm which invests in the
healthcare services, healthcare information technology and medical
technology sectors. With more than $500 million under management,
Psilos invests in companies that demonstrate the ability to reduce
healthcare system costs while improving quality of care, and the
ability to align the incentives of patients, payers and providers.

Health Evolution Partners
Daniel Danzig, 925-254-6078
danzigpr@comcast.net

Copyright Business Wire 2008