For Immediate Release SALIX VENTURES ANNOUNCES INVESTMENT IN ELDER HEALTH NASHVILLE, TENNESSEE (April 29, 2002) -- Salix Ventures announced today a $3.0 million investment as part of a $10.1 million Series F Preferred Stock financing in Elder Health of Baltimore, Maryland. Existing investors New Enterprise Associates of Baltimore, Maryland, and Coleman Swenson Booth Inc. of Nashville, Tennessee, also participated in the financing. As a result of this investment, David Ward, a General Partner of Salix Ventures, will join Elder Health's Board of Directors. Elder Health is a Medicare+Choice HMO that provides personalized medical care for the poor elderly. The poor elderly population numbers approximately six million people in the United States today, and that number is expected to increase over 400%, to 24 million people by 2010. These "dual eligibles" receive coverage from both Medicare and Medicaid for their healthcare costs. By focusing exclusively on the needs of these members, Elder Health has developed a successful health plan in Maryland and is now expanding into Pennsylvania. Michael Steele is founder and CEO of Elder Health. He built the Company from start-up in 1995 to its current annual revenue base of over $70 million (pro-forma for 2002 to include the Pennsylvania market). Mike has over nineteen years of experience in managed care with Equicor, Cigna, and then Travelers. At the end of his tenure with Travelers, Mike had full line responsibility for all corporate based group health and worker's compensation managed care programs whose revenue exceeded $1 billion. "We have great confidence in this Company and believe it is well positioned to take advantage of this market opportunity," says Ward. "Mike Steele has assembled a management team that is deep in provider-based managed care operations. They understand the nuances of providing care to the poor elderly, can navigate the intricacies of Medicare and Medicaid reimbursement and licensing policies, and possess the clinical and quality expertise necessary to improve care while managing costs." 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.