Devices Venture Capital

 News Release - May 10, 2007

Pegasus Biologics Closes $20 Million Series C Financing

Hypergrowth Biologics Company Completes Successful Round

IRVINE, Calif.--(HSMN NewsFeed)--Pegasus Biologics, Inc., a privately held developer of unique bioimplants for soft tissue repair and wound care for diabetic ulcers, announced today that it has closed a $20 million Series C financing led by ONSET Ventures. Other investors in the up-round include existing investors Three Arch Partners, Frazier Healthcare Ventures and new 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 markets served and increase usage of its current product line, while bolstering an already exciting new product development pipeline.

"This highly successful round reflects unprecedented enthusiasm from surgeons for the OrthADAPT(TM) Bioimplant and Unite(TM) Biomatrix," said Pegasus Biologics President and Founder, France Dixon Helfer. "It's also a reflection of our current status as a rapidly growing biologics company. The 'soft tissue, hard science' motto behind our clinically proven technologies is resonating with the medical community. Our sales figures continue to increase monthly and our new products in development are on track. This new influx of funding 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 of Directors. Leslie Bottorff, General Partner with ONSET Ventures and Gary Restani, President and COO of Hansen Medical.

"ONSET is delighted to be an investor in Pegasus Biologics - we are very excited about the many accomplishments the team has already achieved, and look forward to great success in the future," said Bottorff. "The reuse rate by surgeons is increasing, and the extremities business is positioned for high growth. The surgeons we've talked to have been particularly impressed with their patient outcomes, and are finding new applications for this unique product. We believe this round of funding will enable Pegasus Biologics to 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 unique and patented technologies. Additional information on the Company can be found at www.pegasusbio.com.

About ONSET Ventures

ONSET 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 on information and medical technology-based start-ups, ONSET has backed over 100 companies and now has more than $700 million under management. http://www.onsetventures.com

Source: Pegasus Biologics

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