Prolog

Prolog

PROLOG VENTURES LLC
Pierre Laclede Center II
7733 Forsyth Blvd., Suite 1440
St. Louis, Missouri 63105-1874
314-743-2400 (phone)
314-743-2403 (fax)
Gregory R. Johnson (email)

INVESTMENT GUIDELINES

Prolog is seeking to identify companies with the following characteristics as candidates for equity investment.

Location: Missouri and surrounding states.

Developmental Status: At this time of Prolog's initial investment, most portfolio companies will be development-stage with no history of positive cash flow.

Funding Amounts: Initial investments will typically range from $0.5 - $1.5 million. When appropriate, Prolog will begin with a smaller amount as part of a staged investment program. When companies require larger amounts of initial funding, Prolog will consider leading or participating with a syndicate of investors.

Revenue Forecast: New, revenue-oriented companies should target at least $30 million of revenues within five years of funding. Companies whose valuation is dependent upon attaining milestones rather than revenues are evaluated according to their potential for an eventual IPO or acquisition.

Confidentiality: The company should be willing to provide a non-confidential summary and hold initial discussions on a non-confidential basis. In general, Prolog is reluctant to sign non-disclosure agreements in connection with its evaluation of business plans.

Business Areas: Prolog is seeking companies whose businesses are based upon proprietary technology with the potential to develop a strong, intellectual property position.

Of Primary Interest: Medical Devices and Diagnostics, Human and Agricultural Biotechnology, Biomedical IT.

Of Potential Interest: Instruments, Photonics, New Materials, Software.

Excluded: Retail and Consumer, Real Estate, Oil and Gas, Minerals, Telecom Networks, Internet Portals, Publishing, Consumer-Oriented IT.

In order to receive consideration by Prolog Ventures; please send us a brief executive summary so that we can make an initial determination of interest. We will then contact you regarding our level of interest and any subsequent steps that need to be taken.

Gregory R. Johnson
Managing Director
Email: grj@prologventures.com