1. PwC PricewaterhouseCoopers / Venture Economics / National Venture Capital Association MoneyTree  Survey March 2002 Venture Capital Investment in the Biotechnology Industry

2. PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey 2 About The Quarterly MoneyTree Survey PricewaterhouseCoopers has joined forces with Venture Economics and the National Venture Capital Association to produce MoneyTree Survey ‘Core’ measure of equity investments in venture-backed companies in the United States Companies have received at least one round of financing involving a professional VC firm or equivalent Captures: tranches, not term sheets, foreign VCs, qualified private placement Excludes: debt, bridge loans, recaps, roll-ups, IPO's, Pipe's, leasing, etc. MoneyTree™ Survey in its 8th year Results online at www.pwcmoneytree.com, www.ventureeconomics.com, www.nvca.org

3. PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey 3 Let’s put the role of venture capital in the biotechnology industry into perspective…

4. PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey 4 Federal Non-Defense R&D Venture Financing Exceeds Federal Non- Defense R&D Budget Source: PwC/VE/NVCA MoneyTree™ Database & AAAS Report Citing 2002 Federal Budget. Note Federal R&D statistics are constant 2001 dollars

5. PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey 5 MoneyTree: Total Investments in Biotechnology- 1995 - 2001 ($ in billions) # of Deals 138 177227 265 238 264243 % of all Investments 10% 11.4%13.6% 6.9% 3.7%3.5%8.1%

6. PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey 6 Texas $228.1 35 Deals Silicon Valley $3,632.6 323 Deals New England $2,584.3 276 Deals Midwest $571.1 100 Deals South Central $47.9 4 Deals Northwest $611.6 60 Deals Sacramento/N. CA $27.9 6 Deals San Diego $1,501.9 175 Deals Biotechnology Investments by Region 1995-2001 Southeast $778.2 118 Deals Southwest $107.6 30 Deals LA/Orange County $375.2 69 Deals DC/Metroplex $463.8 69 Deals NY Metro $853.6 79 Deals Philadelphia Metro $802.4 122 Deals North Central $221 35 Deals ($ in millions) Colorado $325.3 34 Deals Alaska/ Hawaii $0 0 Deals

7. PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey 7 Texas 0 Deals Silicon Valley $174 10 Deals New England $246 18 Deals Midwest $42 5 Deals South Central 0 Deals Northwest $20 2 Deals Sacramento/N. CA 0 Deals San Diego $82 6 Deals Biotechnology Investments by Region Q4 2001 Southeast $9 3 Deals Southwest $2 2 Deals LA/Orange County $23 3 Deals DC/Metroplex $98 5 Deals NY Metro $174 3 Deals Philadelphia Metro $55 4 Deals North Central $13 5 Deals Total: $1,004 – 67 deals ($ in millions) Colorado $65 1 Deal Alaska/ Hawaii $0 0 Deals

8. PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey 8 Investments by Industry Q4 2001 # of Deals % Change in $ Amount from Q3 01 ($ in millions) Visit www.pwcmoneytree.com for Industry Definitions Q4 2001 Totals: $7,138 856 1.9% 211 67 77 102 85 34 57 41 52 29 9 18 24 36% 41.6% (22.7%) (9.9%) (3%) (21.3%) (43.6%) (23.7%) 7.2% (2.7%) NM 46.1% (31.4%) 16 17 7 10 55% NM 86% ( NM = Not Meaningful)

9. PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey 9 Investments by Industry - Percent of Total U.S. Investments Top 5 Industries – 1995 to 2001 (% of Total Dollars) ‘95‘96‘98‘99‘00‘97‘01 ‘95‘96‘97‘99 ‘98 ‘00‘01‘95‘96‘97‘98 ‘95‘01‘00‘99‘96‘95‘96‘97’98‘99‘00‘01‘97‘98‘99‘00‘01

10. PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey 10 Life Science Investments - Percent of Total U.S. Investments Life Science Sectors – 1995 to 2001 (% of Total Dollars) ’95’96‘97‘96‘98‘99‘00‘01‘97‘98 ‘95 ‘99‘00‘01 ‘96‘97‘98‘99‘00‘01

11. PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey 11 Biotechnology Investments by Financing Sequence - Q4 2001 # of Deals % Change in $ Amount from Q3 01 ($ in millions) * Abnormally high change due to a $150 million investment and a $70 million investment 8 20 14 15 10 60% (22%) (40%) 636%* 48%

12. PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey 12 ($ in millions) Average Biotechnology Deal Size Compared to Average Deal Size for all Industries 1995-2001

13. PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey 13 Venture Capital FirmLocationTotal Deals J.P. Morgan PartnersMenlo Park, CA 13 MPM CapitalCambridge, MA 13 Oxford Bioscience Partners Menlo Park, CA 11 Alta Partners San Francisco, CA 9 Domain Associates Princeton, NJ 9 8 Sprout Group New York, NY Boston, MA 10 InterWest Partners Most Active Venture Investors in Biotechnology - 2001 Princeton, NJ Healthcare Ventures LLC

14. PwC Our Core Biotechnology Service Team: Frank Feeman, audit partner 206/398-3562 Jon Kuchin, tax partner 206/398-3010 Dick Ottele, audit senior manager 206/398-3514

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