Calypso Medical Closes $50 Million Venture Financing Round

Investment led by Skyline Ventures and Frazier Healthcare Ventures to Support
New Indications and Commercial Expansion
SEATTLE--(Business Wire)--
Calypso Medical Technologies, Inc., a developer of real-time localization
technology used for the precise tracking of tumor targets, today announced the
completion of a $50 million round of venture capital financing, led by Skyline
Ventures and Frazier Healthcare Ventures. Bay City Capital and InterWest
Partners were also major investors in the financing. Proceeds from this
financing will be used to support the Company`s commercial expansion, both
domestically and internationally, as well as the development of products to
support new clinical indications and the continued integration of the Calypso®
System with existing linear accelerators and other radiation therapy
technologies.

The Company`s platform technology, also known as GPS for the Body®, utilizes
miniature implanted Beacon®
transponders to provide precise, continuous information on the location of
the tumor during external beam radiation therapy. Any movement by the patient,
including internal movement of the tumor, may cause the radiation to miss its
intended target and hit adjacent healthy tissue. In contrast to other tumor
targeting solutions, the Calypso System provides continuous tumor position
information, objectively and without ionizing radiation, thereby enabling an
increase in the radiation delivered to the tumor while reducing radiation
misapplied to normal tissue.

"Making sure that a tumor is located where the linear accelerator assumes it to
be is critical in external beam radiation therapy," said John Freund, managing
director of Skyline Ventures. "We believe that Calypso`s proprietary GPS for the
Body technology represents a fundamental advance in radiation therapy. Calypso
allows radiation oncologists to increase the dose delivered to the tumor while
decreasing unwanted side effects, for a fraction of the cost of a new linear
accelerator."

"This financing validates the investment community`s continued confidence in the
vision of the company, the team, the unique benefits of our product platform and
its potential in the marketplace," said Eric Meier, president and chief
executive officer of Calypso Medical. "We are pleased to welcome both Skyline
Ventures and InterWest Partners as our newest investors. With the completion of
this financing, we are well capitalized and positioned to further expand the
presence of our product platform to leading cancer centers around the globe."

"We believe the Calypso System will grow in importance as additional clinical
data about its impact emerges and as the company develops capabilities to
address a growing number of tumor types over the next several years," added
Glenn Reicin, managing director of Skyline. "Our prediction is that it will
become a standard of care that clinicians and patients insist upon for many
tumor types."

"As the founding investor in Calypso Medical, Frazier Healthcare Ventures is
very pleased to welcome firms of the quality of Skyline Ventures and InterWest
Partners to the company`s already impressive group of investors," said Trevor
Moody, general partner at Frazier. "This new syndicate further validates the
significant opportunities ahead for Calypso."

Also participating in this financing round were existing investors Versant
Ventures, BB Biotech, Arnerich Massena & Associates, Apothecary Capital,
RiverVest Ventures, Merlin Nexus, Early Bird Ventures, Glenview Capital
Management, Integra Ventures, AEOW, Kaiser Permanente Ventures, Mosaix Ventures,
SB Life Science Ventures, Mitsui & Co. Venture Partners and Rockport Ventures.

About Skyline Ventures

Skyline Ventures, formed in 1997, is a nationally known venture capital firm
that specializes in investing in outstanding product-focused healthcare
companies. Areas of expertise include small molecule and protein therapeutics;
medical devices; diagnostics; and technologies that facilitate drug discovery
and life science research. Each principal possesses an M.D. or Ph.D. degree and
hands-on operating experience in various start-up healthcare companies that
later went public. For more information, please visit
http://www.skylineventures.com.

About Frazier Healthcare Ventures

Frazier Healthcare Ventures, founded in 1991, is one of the nation's leading
providers of venture and growth equity capital to emerging healthcare companies.
Frazier`s mission is to partner with outstanding entrepreneurs to build enduring
companies that deliver therapies and services which address significant unmet
healthcare needs. Since inception in 1991, Frazier Healthcare Ventures has
raised seven investment funds with commitments totaling over $1.8 billion. For
more information, please visit http://www.frazierhealthcare.com.

About Calypso Medical

Calypso Medical Technologies, Inc. is a Seattle-based, privately held medical
device company. The Company`s proprietary tumor localization system utilizes
miniaturized implanted devices (Beacon® electromagnetic transponders) to
continuously, accurately and objectively track the location of tumors for
improved accuracy and management of radiation therapy delivery. The technology
is designed for body-wide cancers commonly treated with radiation therapy. The
products are FDA 510(k) cleared for use in the prostate and post-operative
prostatic bed. The Company has strategic relationships with Varian Medical
Systems, Siemens Medical Systems, Elekta Corporation, and Philips Medical.
Additional information can be found at http://www.calypsomedical.com.

Schwartz Communications
Krystin Hayward/Wendy Mejia, 781-684-0770
calypsomedical@schwartz-pr.com
or
Calypso Medical
David Betz, 206-330-2621
dbetz@calypsomedical.com

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