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Shari Worthington, PR Counsel, +1 508-755-5242
Jerry Schaufeld, President, +1 413-587-2150

Even in Challenging Economic Climate, Mass Ventures Plays Key Role in Securing $12M Funding
for Protedyne, Genomics Automation Firm

Start-up experts position drug discovery innovator for tier-one biotech venture capital investment

Hadley, MA (November 26, 2001) - There's no question that this is a tough time for new companies to raise money. But Mass Ventures, a Western Massachusetts-based venture development firm, knows how to work in tight economic climates. As a result, the firm has helped one of its clients, Protedyne, secure a $12 million private round of financing through The Sprout Group, a venture capital affiliate of Credit Suisse First Boston, and a syndication of three other funds.

Protedyne is an innovative developer of integrated automation systems for genome-based drug discovery. Mass Ventures worked closely with the biotech automation company during the venture development process to position the company as an attractive investment for venture firms in the biotech sector. Together, Mass Ventures and Protedyne worked through such issues as validating the market, creating detailed financial forecasts and presentations, developing a comprehensive business plan, and connecting senior managers with appropriate capital sources.

"As many companies are discovering, it is difficult for start-up companies to access the venture capital market," said Stan Klein, President of Protedyne. "It is even challenging for companies like ours that have put together a great team and great technology. We had even validated our business model with a number of large contracts with blue chip customers."

Klein continued, "Mass Ventures was an important asset in helping us maximize the strength of our positioning. They helped us refine our strategy, plan our organization, and make the most effective case for the investors that we needed to reach. Our goal is to become the undisputed leader in automation solutions for complex molecular biological research processes. The current funding will take us a significant distance towards accomplishing this objective."

Mass Ventures specializes in preparing emerging technology companies such as Protedyne for investors with capital and matches start-ups with the right funding sources. Mass Ventures worked with Protedyne to help them obtain the full amount the company had been seeking in its latest round of financing. Protedyne will use the proceeds to further commercialize its current portfolio of BioCube™ System products that optimize the entire discovery process in academic and commercial laboratories.

Venture Development

"Protedyne now has the funding they need to become a clear leader in this space," stated Jerry Schaufeld, President of Mass Ventures. "As start-up specialists, we have the expertise to prepare businesses for high growth and the venture capital contacts to secure the financing. This successful engagement with Protedyne demonstrates our ability to serve rising stars in the technology sectors. The Sprout Group is one of the biotech industry's top-tier providers of venture capital, and the fact that they are investors sends a powerful statement to the marketplace."

Mass Ventures worked with Protedyne to position the company as an attractive investment for venture firms in the biotech sector. A key initial step was to validate the commercial viability of the technology by identifying and quantifying the market. This effort was made easier by the fact that Protedyne already had a number of notable customers. Mass Ventures then helped develop a comprehensive business plan defining how Protedyne would achieve its market potential, including team building, infrastructure, and all other details relevant for potential investors. Mass Ventures also worked with Protedyne to create a sound financial plan, defining capital requirements and creating a sustainable model to grow the company. Finally, Mass Ventures identified appropriate capital sources and coached Protedyne through the funding process to bring the deal to fruition.

Unlike many investment efforts, the $12 million figure represents the full amount that Protedyne had been seeking in its latest round of financing. The company will use the proceeds to further commercialize its current portfolio of BioCube™ System products that optimize the entire discovery process in academic and commercial laboratories. Mass Ventures' work with Protedyne came at a crucial time. The new funding allows the company to extend its reach in the marketplace as laboratories are seeking greater efficiencies in identifying new leads and establishing IP positions. Protedyne will also use the funds to develop new BioCube products and BioResearchSM Contract Services for additional molecular biological applications.

About Protedyne

Protedyne (www.protedyne.com) combines scientific expertise, automation systems, and integrated project management to create innovative solutions for genomic-based drug discovery. These solutions incorporate the highly flexible BioCube System. This ultra-high throughput laboratory automation platform improves the effectiveness of genetic research and dramatically accelerates the discovery of new drugs. The system utilizes Protedyne's CILA® (Computer Integrated Laboratory Automation) architecture that rapidly and seamlessly integrates hardware, software, and scientific protocols into the customer's R&D infrastructure. CILA's real-time integrated data tracking provides the highest data integrity and lowest error rates across the discovery process.

About the Sprout Group

The Sprout Group (www.sproutgroup.com) is one of the oldest and largest venture capital/private equity firms in the U.S. Since 1969, Sprout has helped finance more than 300 companies with combined sales exceeding $40 billion. With offices in Menlo Park and New York, Sprout focuses on helping to grow companies in datacom and telecom, e-commerce, technology-related services, healthcare technology, and enterprise software. Active investments in healthcare technology include Adeza Biomedical, Adolor, Allos Therapeutics, Deltagen, ePocrates, IntraBiotics Pharmaceuticals, MRL, NxStage Medical, Pharsight, PhaseForward, Phylos, Prometheus, Radiant Medical, Skila, Spotfire, Structural GenomiX, Tripath, Variagenics, VascA, Visiogen and VNUS Medical Technologies. Sprout Group is a venture capital affiliate of Credit Suisse First Boston.

About Mass Ventures

Mass Ventures (www.massventures.com) is a venture development firm that works with entrepreneurs and investors to develop high growth companies in Western Massachusetts and beyond. Offering a unique combination of venture development services and educational programs, Mass Ventures helps new businesses commercialize leading edge technologies and obtain funding, quickly and efficiently. To date, the organization has brought over $70 million into the Western Massachusetts region, working with such companies as Javanet (acquired by RCN), Springboard (www.springboard.com), and MetaEvents (acquired by Palm Computing).