Tánaiste Mary Coughlan Launches €75m Seroba Kernel Life Sciences Fund II Limited Partnership

7th Fund under Enterprise Ireland’s Seed and Venture Capital Scheme 2007-2012 Announced

Dublin, Ireland and London, UK

The Tánaiste and Minister for Enterprise Trade and Employment, Mary Coughlan TD, today (Monday 9 February 2009) announced the first close of theSeroba Kernel Life Sciences Fund II Limited Partnership, with €75 million of commitments. This new entity creates one of the largest dedicated life science venture capital firms in Ireland and the UK. Headquartered in Dublin, Seroba Kernel Life Sciences Ltd has an experienced fund management team of six, based in both Dublin and London. The closing of the new fund brings the total life science funds currently under management by this team to over €200 million.

This is the seventh fund supported by Government through Enterprise Ireland’s €175m Seed and Venture Capital Programme 2007-2012, and is the second fund dedicated to the Life Sciences sector.

Making the announcement the Tánaiste said:“Seed and venture capital are essential for the growth and development of successful high potential Irish business and I am delighted to announce the creation of the Seroba Kernel Life Sciences Fund II Limited Partnership. This fund is hugely important, marking a significant increase in the availability of capital for companies in the life sciences sector. It underpins Enterprise Ireland’s strategy in supporting the sustained growth and internationalisation of this sector and will help drive the commercialisation of new and innovative products from ambitious Irish companies”.

The new fund will be dedicated to product focused, innovative early and mid-stage life sciences companies, including potentially some investments in public companies, primarily in Ireland and the United Kingdom, that offer a significant potential investment return. The firm intends to invest in 10 to 15 companies, focused primarily on therapeutics, medical devices and diagnostics but will also consider other opportunities in the life sciences sector. The fund will lead or co-lead its investments with an average investment size of about €5.0m to €7.0m per company over the life of the fund.

Investors in the Seroba Kernel Life Sciences Fund II Limited Partnership are made up of Enterprise Ireland and other institutional investors including the National Pensions Reserve Fund.

Peter Sandys, Managing Partner of Seroba Kernel Life Sciences, commenting on the fund launch said:”We are delighted to announce our first close, particularly in the current economic environment, which I think speaks to the quality of our investment strategy. We feel this is an excellent time to launch a new life sciences fund as there are attractive entry valuations for new investors and an ongoing robust demand for new innovative healthcare products. With a broad base of tier 1 institutional investors our new fund is well positioned to capitalise on the significant investment opportunities within the Irish and European Life Sciences sector”.

Niall Olden, Managing Partner of Kernel Capital said:“It is important for the Irish Venture Capital industry that we created a firm of scale that has the ability to compete with the best in Europe. This Joint Venture brings together an exceptional investment team, with substantial relevant experience and an excellent track record. This €75m Life Science Fund compliments our existing €110m Bank of Ireland Kernel Capital Funds I & II, which continue to invest in ambitious and innovative indigenous companies in non Life Science sectors.”

ENDS/ETE2005

Enterprise Ireland’s Seed and Venture Capital Programme 2007-2012

Venture capital is an essential element of the eco-system for Irish indigenous industry, providing risk capital for companies that would have difficulty raising capital through traditional sources of finance. Under the 2007-2012 Seed and Venture Capital Programme, the Government through Enterprise Ireland is investing €175m, which will leverage an estimated investment of €1bn in start-up, early stage and development stage businesses. This scheme was announced in May 2006 and follows two previous similar programmes. Under the 1994-1999 Programme, Enterprise Ireland committed €43.9m, which leveraged a total €127m for investment.

Under the 2000-2006 programme Enterprise Ireland committed €98m, which resulted in a total €408m for investment.

Enterprise Ireland

Enterprise Ireland is the government agency responsible for the development and promotion of the indigenous business sector. EI provides financial support to companies by way of direct investments in individual projects as well as indirect investments through participating in venture capital funds.

Seroba Kernel Life Sciences Limited

Seroba Kernel is Ireland's largest and most experienced life science venture capital firm. The team is responsible for the management of over €200 million in life science investments. The fund will invest in European life science companies with the majority of its capital invested in Ireland and the United Kingdom. For more information please visit www.seroba-kernel.com

Seroba Kernel has an experienced life science venture fund management team with complementary skill sets who have held senior management positions in the life science, financial and venture capital industries. The executives in the Dublin office are as follows: Mr. Peter Sandys, Dr. Daniel O’Mahony, Mr. Seamus O’Hara and Dr. Alan O’Connell. Dr. Jonathan Hepple and Dr. Graham Fagg will be based in London.

Seroba

Seroba is a life science venture capital management firm. Seroba was established in 2001 as Ireland’s first fully dedicated life science venture capital fund and is now the leading life science investor in Ireland.

Kernel Capital

Kernel Capital is one of Ireland’s largest and most active venture capital firms. In addition to the €75m Seroba Kernel Life Science Fund, the firm has €110m under management through the Bank of Ireland Kernel Capital Partners Funds I & II.

National Pensions Reserve Fund

The National Pensions Reserve Fund was established by the Government in 2001 to meet as much as possible the costs of Ireland’s social welfare and public service pensions from 2025 until at least 2055. The Fund is controlled by the NPRF Commission, which has a statutory commercial investment mandate, and is invested globally across a diversified range of asset classes including quoted equities, bonds, property, private equity and commodities. The National Treasury Management Agency is the Manager of the National Pensions Reserve Fund.