For Immediate Release SALIX VENTURES ANNOUNCES INVESTMENT IN NEIGHBORHOOD DIABETES ANDOVER, MASSACHUSETTS (July 16, 2004) -- Salix Ventures announced today that it led the recapitalization of Neighborhood Diabetes (NDS) of Wakefield, MA. New senior management also participated in the recapitalization. A senior credit facility for the recapitalization was provided by Banknorth, N.A. As a result of this investment, Chris Grant, a General Partner of Salix Ventures, and Mark Donovan, a Principal of Salix Ventures, will join Neighborhood Diabetes Board of Directors.  Neighborhood Diabetes provides direct-to-consumer, mail order diabetes testing supplies and value-added educational services to the large and growing diabetic population. NDS, founded in 1998, sells a full selection of glucose meters, test strips, infusion pumps, lancets, lancing devices and other ancillary supplies. NDS provides its customers with the convenience of no up-front, out-of-pocket expenses and free home delivery, while billing Medicare or third-party payors on behalf of its customers. Tom Cronin is the CEO of Neighborhood Diabetes. Prior to running NDS, Tom was the CEO of CranBarry, Inc., a sporting goods company, that was sold in 2002. Before this, Tom was a consultant with Bain & Company. 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.