Endius Secures First Round in $15 Million New Series B Financing

Plainville, Mass. - Company to Accelerate Market Penetration and Deliver New Solutions for the Minimally Invasive Surgical Treatment of Degenerative Spine Disease

Endius Incorporated, a leader in minimally invasive spine surgery (MISS) technology, today announced that it has closed the first round of a new Series B Convertible Preferred Stock financing. Under the terms of the financing agreement, the Company, upon approval of its Board of Directors, could trigger two additional rounds and raise an aggregate $15 million from the combined three rounds through the sale of Series B Convertible Preferred Stock shares. All previous investors with significant positions in the company are participating in this financing. Returning investors The Carlyle Group, EGS Healthcare, Hillman Medical Ventures and Morgan Stanley led this round of funding, with additional returning participants Dauphin Capital Partners and Trellis Health Ventures.

Endius offers unique solutions for spinal fusion surgery, specifically in the category of Minimally Invasive Spine Surgery (MISS). This is the largest and fastest-growing segment of a $2.4 billion spinal market that is projected to grow to $5.0 billion by 2009 (Source: Millenium Research). Endius' unique product platforms enable patients to receive a wide variety of spine procedures including those that involve multi-level pedicular fixation, interbody fusion and/or decompression via a less-traumatic surgical approach. Clinical results for Endius' single-level minimally invasive lumbar spine surgery show significant benefits compared to the open procedure, considerable reduction in the use of narcotic pain medications, less blood loss and reduced hospital stay(s).

"Endius is at the forefront of one of the fastest growing sectors of the spine device market today and it continues to expand and strengthen its intellectual property, an important initiative to protect its growing value," said Ryan Schwarz, Managing Director - Venture Capital, The Carlyle Group. "As a returning investor in Endius, we have great confidence in the Company's management team and its strategy for accelerating growth while also building long-term value."

"The management team at Endius has made significant strides during the past year and positioned the company strongly for the future," said Terry Vance, General Partner, EGS Healthcare Capital Partners. "We look forward to our continued partnership with Endius at a time when the market opportunity for clinical adoption of new spine technologies has never been greater."

The Company's Atavi(R) Atraumatic Spine Surgery System provides a less traumatic and potentially more effective treatment alternative to traditional spine surgery. The Atavi System has recently undergone significant enhancements that enable seamless integration with mainstream surgical practice. Endius will invest part of its new capital in the roll-out of this initiative through expanded distribution and intensified sales and marketing that will accelerate market penetration.

Endius also remains focused on the development of future MISS applications of the Atavi platform, including use in the cervical spine and in facilitating the use of emerging technologies such as dynamic posterior stabilization, artificial disc and prosthetic disc nuclei as they enter the market. The advanced delivery capabilities of the minimally invasive Atavi System may provide the critical surgical approach for these emerging technologies.

"With Atavi's superior access technology as the foundation, our recent advances in dramatically streamlining the instrumentation of the system and better modeling it to traditional techniques are being exceptionally well received," said Michael McCarthy, President and CEO of Endius. "Surgeons across the country are using the Atavi System to improve patient care, reduce surgical trauma and pain and speed the recovery time of fusion procedures, which will continue to be an important treatment alternative for most patients.

"If and when motion preservation technology such as artificial disc, disc nucleus and dynamic stabilization evolves to become an accepted option for routine treatment, delivering it through a minimally invasive surgical means will be the goal, and Endius will be ready with the solution. We are gratified by the continuing confidence of our investors and look forward to successfully executing the next phase of our business plan."

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