Vesalius Ventures “VC’s View of the Future of Technology” Technology Showcase Houston Technology Center Bernard A. Harris, Jr. President & CEO

Vesalius Ventures Agenda Trends in Life Science & Biotech Trends in Life Science & Biotech Trends in Medical Technology Trends in Medical Technology VC’s PerView VC’s PerView

Vesalius Ventures  Completion of human genome  Era of proteomics and gene therapies  Major strides in biotechnology & medicine  Minimally invasive diagnostics and therapeutics  Nanoscience and technology  Medical internet applications  Consumer dissatisfaction with provider interface  Reduction of waste in healthcare expenditures  Increased interest in personal wellness, prevention Trends Driving Life Science Investing

Vesalius Ventures DevicesBiotechnologyServices  Minimally invasive access devices access devices  Guidewire  Trocars  Catheters  Ports  Surgical instruments  Provide real time  Imaging  Diagnostics  Therapy  Drug Delivery  Implants  Improved outcomes  Lower costs  Image guided therapies  Ability to modulate immune system  Gene therapy and drug development-based on genetic basis of disease  Novel viral treatments  Enabling technologies:  Proteomics  Gene therapies  Cancer vaccines  Tissue engineering  Novel small molecules  Biochip tools  HMOs,managed care  Restoration independent independent physician practices physician practices  Changing Medicaid and Medicare provisions Medicare provisions  Evolution of physician based information based information systems systems  Hospitals merging and seeking merging and seeking profitability profitability Trends and Opportunities In biotech

Vesalius Ventures Health Care Market Raising U.S. Healthcare expenditures Year $ Trillions$.428 $1.1 $1.3$1.9 $2.6 % GDP10.2% 13.2% 13.1%14.9% 15.9%

Vesalius Ventures Technology Trends in Medicine *  Wireless and broadband technologies  Open architecture, a distributed management system, and universally-secure access.  Integrated Clinical Patient Record, Integrating centralized and remote databases with health cards  Bio-sensors and bio-materials, bio-computing and bio-informatics, and Micro Electromechanical Systems (MEMS) sensors  Biometric identification and Security *Based on recent study of Technology Trends

Vesalius Ventures Great Time For Start-ups  Products that increase productivity are always in demand  Less competition for deals-better collaboration  IP data is the long term driver  Start-up valuations are right  Resources more available at better prices  Talent  Space  Professional Services  No correlation between innovation and stock market cycles  New companies must provide 10x value improvements, address needs of diversified markets

Vesalius Ventures $2-5 M for 50%-70% 9-12 months of milestones $ M for 50% months of operations Product to Mkt. Product to Mkt. Full Mgmt. Team Full Mgmt. Team Revenue Start Revenue Start Distribution Distribution Business Model Business Model“Business” First Major Financing Later Stage Financing $ M for 30%-40% months Pre IPO New Investors New Investors Val. Increase Val. Increase Execution Execution Expansion Expansion Prepare IPO Prepare IPO“Story” Seed Stage 2 Seed Stage 1 Start-up $ M for 9-12 months of milestones R/D Team R/D Team Product Development Product Development Business Plan Business Plan CEO CEO Management Team Management Team “Viable Start-up” Company Financing The Value Proposition

Vesalius Ventures Conclusions: Information, telecommunication, Internet and wireless technologies will increasingly provide the foundation for the delivery of health care in the future. Information, telecommunication, Internet and wireless technologies will increasingly provide the foundation for the delivery of health care in the future. Life Science/Biotech should be to priority. Investment in services & technologies which take advantage of health care trends are of high value. The Greater Houston Area is at the center of Life Science/Biotech.

Vesalius Ventures Dr. Harris has a Bachelor of Science in Biology from the University of Houston, a Master of Medical Science from the University of Texas Medical Branch at Galveston, a Master of Business Administration (MBA) from the University of Houston and a Doctorate of Medicine from Texas Tech University School of Medicine. He completed a Residency in Internal Medicine at the Mayo Clinic, a National Research Council Fellowship in Endocrinology at the NASA Ames Research Center and trained as a Flight Surgeon at the Aerospace School of Medicine, Brooks Air Force Base. He is also a licensed private pilot. He holds several faculty appointments including, Associate Professor in internal medicine at the University of Texas Medical Branch and Assistant Professor at Baylor College of Medicine. In addition, he is the author and co-author of numerous scientific publications. Dr. Harris was at NASA for ten years, where he conducted research in musculoskeletal physiology and disuse osteoporosis. Later, as Head of the Exercise Countermeasure Project, he conducted clinical investigations of space adaptation and developed in-flight medical devices to extend Astronaut stays in space, which involved the use of telemetry. A veteran astronaut for over eleven years, he has logged more than 438 hours and traveled over 7.2 million miles in space. On his second flight, Dr. Harris conducted the first telemedicine conference from space with the Mayo Clinic. Dr. Harris has served as Vice President and Chief Scientist of SPACEHAB, Inc., an innovative space commercialization company where he directed the company's space science business. There he was involved in business development and marketing of the company's space-based products and services. During his tenure, the company grew from 60 to 800 employees with annual revenue of over $100 million. Dr. Harris was involved with enhancement of medical devices for use in remote environments. He also served as Vice President of Business Development for Space Media, Inc., an Informatics company, establishing an e-commerce initiative that is now part of the United Nations' education program. Dr. Harris is currently President & CEO of Vesalius Ventures, Inc., a business accelerator for Medical Informatics and Technology. He is also the President of the Harris Foundation, a non-profit organization that invest in the youth of America. Dr. Harris is Chairman of the Science Advisory Board of Kodiak Technologies, Senior Consultant for NASA Aerospace Safety Panel, and a Member of the NASA Biological and Physical Sciences Committee, the NIH National Institute for Deafness and Communications Disorders, the National Academies Institute of Medicine and on the Board of Directors for the Medical Informatics, Technology and Applications Center. Throughout his career, he has received numerous awards and recognition, including the election as Fellow of the American College of Physicians and the recipient of the 2000 Horatio Alger Award. Bernard A. Harris, Jr., MD, MBA.