RoundTable Update: First Half 2004

RoundTable Healthcare Partners (“RoundTable”) reached several important milestones in the first half of 2004. We would like to update you on our recent activities, including the following key events:

• First portfolio company exit: Sabex was sold for $565 million, generating an 8.2x return
• New platform investment: Excelsior Medical Corporation acquired from owner/founder

First Portfolio Company Exit:
On June 7, RoundTable announced that it had entered into a definitive agreement to sell one of its portfolio companies, Sabex Holdings, Ltd., to Sandoz, the global generics business of Novartis, for $565 million. Sabex is a leading Canadian manufacturer and distributor of generic injectable pharmaceuticals. RoundTable acquired a majority interest in Sabex from the Company’s owner/founder in April 2002. The sale of Sabex represents RoundTable’s first exit from a portfolio company and resulted in a distribution to RoundTable’s investors of a substantial multiple of their invested capital.

RoundTable’s operating and transaction expertise were instrumental in the value creation achieved during RoundTable’s two-year ownership of Sabex. RoundTable’s operating contributions included helping Sabex renegotiate and expand its U.S. distribution relationships, identifying and recruiting a CEO successor as well as a president for U.S. operations, helping to finance and direct a significant capital investment program, and executing and financing a product acquisition strategy. From a transaction perspective, RoundTable coordinated the strategic dialogue that ultimately resulted in the sale, and also managed the entire sale process.

The sale of Sabex was an unexpected milestone in 2004 given that the Company had recently completed a substantial capacity expansion and was poised for continued growth. As the dialogue about a possible transaction progressed, however, it became clear that a transaction with Sandoz was in the best interest of all parties. Sabex’s founder, Michel Saucier, and the current management team will both be well rewarded for their tremendous efforts and will have the opportunity to lead the platform for Sandoz’s Canadian expansion plans. RoundTable will miss our partnership with the Sabex team and wish them continued success.

New Platform Investment:
On June 28, RoundTable completed its sixth platform investment when it announced that it had acquired a majority interest in Excelsior Medical Corporation (“Excelsior”). Excelsior, based in Neptune, New Jersey, manufactures pre-filled flush syringes and syringe pump systems. Syringe pump systems consist of syringe infusion pumps, dispensing pumps, tubing, thermal label printers, labels, and accessories.

Excelsior was founded in 1989 by its current CEO, David Lumia. Mr. Lumia will retain a minority equity interest in the Company and will continue to serve as CEO. The Excelsior investment is a continuation of RoundTable’s efforts to identify owner/founders that believe RoundTable’s operating-orientation, transaction expertise, and extensive healthcare industry experience and relationships can serve as value-creating and differentiating factors. Together, RoundTable and Mr. Lumia believe that Excelsior can complete a number of operating initiatives that will improve the Company’s strategic position going forward.

Portfolio Companies Continue to Benefit from RoundTable’s Initiatives:
Vanguard Medical Concepts, Inc. (“Vanguard”), which reprocesses medical devices labeled as single-use, continues to generate substantial revenue growth. RoundTable has played a significant role in helping Vanguard win new GPO contracts and close contracts with large hospital networks. The third-party reprocessing industry is increasingly viewed favorably by hospitals as their experience proves that they are able to safely reduce operating expenses. Vanguard was RoundTable’s first portfolio investment, completed in September 2001.

American Medical Instruments Holdings, Inc. (“AMIH”), acquired in April 2003, recently marked its first year anniversary operating as a standalone company. Prior to RoundTable’s investment the operating units that were acquired to form AMIH shared common ownership but were independent legal entities that were not strategically coordinated. One example of the improved strategic coordination that has been achieved is within AMIH’s InterV operating unit, which has emerged as a recognized brand in the fast growing and attractive interventional products market. Visit www.interv.net to learn more about InterV’s products and key differentiating factors.

MedAssist, Inc. (“MedAssist”), a leading provider of outsourced cash flow cycle management services to hospitals, continues to experience growth as hospitals increasingly view outsourced service providers as one way to address the financial constraints they face. In early 2004, RoundTable appointed an independent director, Anthony K. Kesman, to MedAssist’s board of directors. Mr. Kesman is an experienced healthcare industry executive and brings to MedAssist a wealth of healthcare industry knowledge and relationships. Mr. Kesman’s appointment is consistent with RoundTable’s belief in establishing strategically valuable boards at each portfolio company. RoundTable’s investment in MedAssist was completed in May 2003.

Argon Medical Devices, Inc. (“Argon”), a leading manufacturer and supplier of single-use vascular-access medical devices, has now operated as an independent, standalone company for six months. Prior to RoundTable’s November 2003 investment, Argon was a healthy operating unit of an otherwise troubled healthcare company. RoundTable has made a number of important operating contributions to Argon in recent months, including augmenting Argon’s existing management team with the addition of a new CEO, VP of Finance, VP of Sales & Marketing, and a Director of Manufacturing. Additionally, RoundTable has added Roger Sisterman to Argon’s board of directors. Mr. Sisterman has substantial manufacturing experience in the healthcare industry and will be a valuable resource for Argon’s management.

Actively Looking for New Investments:
RoundTable is particularly excited to partner with companies that would benefit from our extensive relationships with hospitals, purchasing groups, distributors, manufacturers, vendors and corporate partners. We encourage you to think of RoundTable as you encounter owner/founders, equity owning management teams, or corporate parents that might find our unique value proposition attractive. We appreciate your continued interest in RoundTable and look forward to discussing investment opportunities with you.