For Immediate Release Contact: Christopher Grant, Jr. General Partner (978) 470-2500 SALIX VENTURES ANNOUNCES START OF SALIX III FUNDRAISING ANDOVER, Mass. (January 23, 2006) -- Salix Ventures announced today its intention to raise up to $150 million for its third venture capital partnership, Salix Ventures III, L.P. The fund will focus on early-stage health care services investments with a small portion of the fund allocated to health care information technology companies. Salix expects a closing in June 2006. Salix has raised two previous funds: Salix Ventures, L.P., a $60 million fund closed in 1998, and Salix Ventures II, L.P., a $120 million fund closed in 2000. Salix has achieved significant realizations from the two funds in the last two years, including the sale of its position in Psychiatric Solutions, Inc. (NASDAQ:PSYS), the leading operator of freestanding inpatient behavioral facilities in the country; the sale of Pathology Partners, the largest anatomic pathology lab in the country serving gastroenterologists; and the sale of SemperCare, an operator of long-term acute care hospitals. Salix Ventures II ranks among the top quartile of 2000 venture funds based on benchmarks prepared by Cambridge Associates. Salix will invest the new fund with the same team and investing strategy as its two previous funds. Co-founders Chris Grant and David Ward will serve as General Partners of the new fund as will Marty Felsenthal, who joined Salix as a Principal in 1997 and became a General Partner in 2000; and Mark Donovan, who joined Salix as a Principal in 1999 and will become a General Partner upon closing of the new fund. Salix will target 15-18 total portfolio companies and expects that two-thirds of its investments will represent the first round of institutional funding for the portfolio company. Salix expects to allocate between $8 million to $10 million per company. Salix is an active investor and takes board seats in all of its investments. General Partner Chris Grant commented: "We are executing on the same early-stage investing strategy that was pioneered by some very successful health care services funds in the 1980s and early 1990s. These funds have now grown to billion dollar partnerships and, as a result, can no longer participate in this segment of the market." He continued: "This has created an excellent opportunity for Salix. Health care services is the largest sector of the economy and is growing at a faster rate than any other sector because of the aging demographics of our society and advances in medical technology, yet there are very few funds competing with us for investment opportunities." General Partner David Ward continued: "Our dedicated focus on health care services and our operating backgrounds have enabled us to enjoy true proprietary deal flow and provide significant value to our portfolio companies". Mr. Ward added: "Our strategy is to back experienced CEOs in established business platforms with proven business models. Although we are early-stage health care services investors, our portfolio companies at the time of our investment are already operating companies with revenue, but require growth capital to scale. As a result, we believe that we combine the upside opportunity of a venture portfolio with the downside protection of a private equity portfolio."