Pegasus Biologics Closes $20 Million Series C Financing - Frazier ...

For Immediate ReleaseMedia Contact: Paul Williams949/916-6880PEGASUS BIOLOGICS CLOSES $20 MILLION SERIES C FINANCINGHypergrowth Biologics Company Completes Successful RoundIRVINE, CA – May 10, 2007 – Pegasus Biologics, Inc., a privately held developer ofunique bioimplants for soft tissue repair and wound care, announced today that it hasclosed a $20 million Series C financing led by ONSET Ventures. Other investors in theup-round include existing investors Three Arch Partners, Frazier Healthcare Ventures andnew investor Affinity Capital Management.This financing round brings the company’s total private equity investment to just under$32 million and is projected to enable Pegasus Biologics to further expand the marketsserved and increase usage of its current product line, while bolstering an already excitingnew product development pipeline.“This highly successful round reflects unprecedented enthusiasm from surgeons for theOrthADAPT Bioimplant and Unite Biomatrix,” said Pegasus Biologics President andFounder, France Dixon Helfer. “It’s also a reflection of our current status as a rapidlygrowing biologics company. The ‘soft tissue, hard science’ motto behind our clinicallyproven technologies is resonating with the medical community. Our sales figurescontinue to increase monthly and our new product pipeline is robust. This new influx offunding will enable us to boost our existing momentum to the next level.”Pegasus Biologics also announced the addition of two new members to its Board ofDirectors. Leslie Bottorff, General Partner with ONSET’s Medical Technology Groupand Gary Restani, President and COO of Hansen Medical.“ONSET is delighted to be an investor in Pegasus Biologics – we are very excited aboutthe many accomplishments the team has already achieved, and look forward to greatsuccess in the future,” said Bottorff. “The reuse rate by surgeons is increasing, and theextremities business is positioned for high growth. The surgeons we’ve talked to havebeen particularly impressed with their patient outcomes, and are finding new applicationsfor this unique product. We believe this round of funding will enable Pegasus Biologicsto stake its claim as a dominant player in several key markets."About Pegasus Biologics, Inc.###Pegasus Biologics, Inc. (Irvine, CA) is a privately held company focused on the research,development and commercialization of next generation biologics utilizing the Company’s uniqueand patented technologies. Additional information on the Company can be found atwww.pegasusbio.com.

About ONSET VenturesONSET Ventures (Menlo Park, CA) specializes in providing an ideal mix of start-up,follow-on and intellectual capital to entrepreneurs and early stage ventures. Focused oninformation and medical technology-based start-ups, ONSET has backed over 100companies and now has more than $700 million under management.http://www.onsetventures.com