For Immediate Release SALIX VENTURES ANNOUNCES INVESTMENT IN ALLEGIANCE HOSPICE ANDOVER, MA (March 31, 2005) -- Salix Ventures announced today its investment in Allegiance Hospice, Inc., based in Lowell, Massachusetts. Salix Ventures led the transaction, and SV Life Sciences of Boston, Massachusetts and management also participated in the $4.5 million financing. Proceeds of the financing were used to fund the acquisition of Royal Hospice, LLC, a southeastern Massachusetts-based hospice provider. As a result of this investment, Chris Grant, a General Partner of Salix Ventures, will join Allegiance Hospice's Board of Directors. Allegiance Hospice, Inc. is a regional hospice provider serving patients in New England. Through an interdisciplinary team of physicians, nurses, home healthcare aides, social workers, counselors and volunteers, Allegiance provides palliative care for patients with terminal illnesses. Such care is directed at managing pain and other discomforting symptoms and addressing the psychological and spiritual needs of patients and their families. Allegiance plans to build on its existing platform by establishing new branch offices throughout New England. Dan Kane is the CEO of Allegiance Hospice. Prior to founding Allegiance, Dan was CEO and President of Olympus Healthcare Group, a diversified healthcare services company, which owned and operated long-term acute care hospitals, skilled nursing facilities, a retail pharmacy and a contract rehabilitation therapy company. From 1991 to 1994 Dan was Chief Operating Officer of The Mediplex Group, Inc. and from 1989 to 1991 Dan served as Chief Financial Officer of The Mediplex Group. According to Mr. Grant, "Salix is excited to be partnered with an executive with such breadth of experience in the healthcare marketplace, particularly in the New England region. Mr. Kane's relationships, combined with the existing business, provide an excellent platform on which to build a strong enterprise." About Salix Ventures Salix Ventures manages two venture capital partnerships with approximately $180 million in capital commitments from limited partners. Salix invests primarily in early-stage healthcare services and healthcare information technology companies. With offices in Andover, Nashville and San Francisco, Salix Ventures assists companies across the country through all stages of development.