LipoSonix, Inc., Secures $27 Million Investment for Commercialization of Non-Invasive Cosmetic Body Sculpting System; Series C Financing Led by New Investor Three Arch Partners

Bothell, WA – LipoSonix, Inc., a developer of medical devices for the non-invasive removal of body fat, has raised $27 million in a Series C financing. Three Arch Partners, a leading medical device venture capital firm, led the round with strong participation from new investors Delphi Ventures, Essex Woodlands Health Ventures, and Pinnacle Ventures, as well as existing investors Accuitive Medical Ventures, The Carlyle Group, Schroder Ventures Life Sciences and Versant Ventures. Financing from this round will fund the company through completion of product development, human clinical testing, and final FDA approval of the company’s cosmetic body sculpting system.

LipoSonix is a leading developer of non-invasive cosmetic therapy procedures based on high-intensity ultrasound technology. The initial LipoSonix product, SonoSculpt, will provide a non-invasive alternative to liposuction in the $2 billion cosmetic body sculpting market. The company will continue human clinical testing of the SonoSculpt system, which began in mid-2003.

“LipoSonix is pleased to have earned the confidence of such an outstanding group of investors. This financing will help us revolutionize the cosmetic surgery market by offering the first safe, effective, non-invasive solution for body sculpting,” said Jens U. Quistgaard, LipoSonix, Inc. President and CEO. “We value the breadth of expertise our new investors will bring to our business as we continue our growth.”

“LipoSonix has everything we look for in an investment including an experienced management team and an innovative product in an underserved, high-demand market,” said Wilfred Jaeger, M.D. of Three Arch Partners, who will join the LipoSonix Board of Directors. “LipoSonix has an extremely compelling story, and we are pleased to be involved with such a forward thinking company.”

“With the LipoSonix device, one can non-invasively disrupt and selectively reduce fat. This is bound to totally revolutionize the approach to body sculpting” said Peter B. Fodor, M.D., President of The American Society for Aesthetic Plastic Surgery and Chairman of the LipoSonix Scientific Advisory Board. “Through this process, results of previously unattainable quality will become reality. We will conduct, under the utmost scientific scrutiny, clinical research to validate the method.”

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