OVERVIEW

Established by Marc R. Viscogliosi, John J. Viscogliosi and Anthony G. Viscogliosi in New York City in 1999, VB was the first venture capital/private equity and merchant banking firm dedicated to the musculoskeletal/orthopedics sector of the healthcare industry. Today, VB is a leading independent firm, with a mission: to create, build, operate and finance companies founded on innovations, developed by surgeons, and uniquely focused on “life changing” musculoskeletal/orthopedic technologies. VB has worldwide surgeon, industry and trade relationships and significant financial expertise in the musculoskeletal/orthopedics sector.

Heritage in musculoskeletal/orthopedics industry
The principals of VB, Anthony, John and Marc Viscogliosi, have a combined total of more than 35 years experience analyzing and investing in the musculoskeletal/orthopedics sector. They have pioneered innovative financial, strategic, and management initiatives for companies in the sector, from start-up, seed and development stage all the way to exit, while helping thousands of people lead better lives through the orthopedic and spinal products marketed and sold by the companies they have assisted in developing and financing.

Companies we have formed and developed employ more than 300 people. The implants we have innovated, developed and marketed have helped more than 65,000 petients globally.

Investing in the sector
Since inception, VB has led, participated in or acted as principal in more than 40 transactions in the musculoskeletal/orthopedics industry. VB has sponsored five venture capital and single purpose investment funds and, in January 2004, funded the predecessor to Orthopedic Investment Partners, LP with US$2 million, the first hedge fund dedicated exclusively to investing in publicly traded medical device companies with a primary focus on musculoskeletal companies. The investors in the venture capital and single purpose funds taken together consist of more than 140 leading orthopedic and neurosurgeons, product distributors and musculoskeletal industry personnel.

Artificial disc technology
In 1999, VB and Aesculap AG & Co. KG (“Aesculap”), a subsidiary of B Braun Melsungen AG, jointly created Spine Solutions, Inc. to market the ProDisc, a total artificial disc replacement system originally developed by Dr. Thierry Marnay of France. Under the terms of the joint venture, Aesculap contributed the patents and related intellectual property rights for the ProDisc to Spine Solutions and VB was responsible for hiring the senior management team, providing corporate development assistance, and raising financing to fund the operations of the company. Anthony G. Viscogliosi served as Founder, Chairman, President & CEO, John J. Viscogliosi as Founder, CFO and member of the Board of Directors, Marc R. Viscogliosi as Founder, VP. Corporate Development and as a member of the Board of Directors. Spine Solutions, Inc. was sold to Synthes-Stratec, Inc. in April 2003 for up to $350 million in cash. The purchase price consisted of an initial cash payment of $175 million with additional further consideration of up to $175 million depending upon the achievement of certain regulatory milestones.

Spine Next SA
In October, 2004, another VB portfolio company, Spine Next, SA of France, was acquired by Abbott Laboratories for $60 million in cash and additional milestone payments upon achievement of future targets.

VB invested in the final two financing rounds of Spine Next. In November 2003, VB led a $2 million, fourth and final equity financing round for Spine Next to support the commercialization of the Wallis™ non-fusion system by collecting historical clinical data. In April 2004, VB participated in a $4.7 million debt round of financing for Spine Next to support the clinical effort behind the Wallis™ non-fusion technology. VB’s partners in Spine Next included Britain’s 3i and France-based Auriga Partners and Edmond de Rothschild Investment Partners.

Anthony Viscogliosi served on the Spine Next board following VB’s initial investment and until the completion of the company’s sale to Abbott. He was closely involved in the sale process.

Beyond total disc
Following the success of its pioneering work in artificial total disc technology, VB recognized the significant opportunities for surgeons, patients and investors in other non-fusion technologies that treat every stage of degenerative disc disease. VB has identified more than 40 products and procedures that are either clinically proven or will be approved in the near future. As a result, a new company, Paradigm Spine, LLC., has been formed to develop and market certain product systems and technologies worldwide.

Small bone & joint investments
Most recently, in February 2005, VB announced the formation of Small Bone Innovations, LLC. (SBI), a company dedicated to the needs of surgeons who specialize in treating bones and joints from the shoulder to the fingers, and from below the knee to the toes. In assembling SBI, VB acquired four prominent manufacturers and marketers of devices and instrumentation for small bone treatments, and concluded two global licensing agreements to market advanced technologies in the sector.