AVALON VENTURES Closes $75 Million Seventh Fund

SAN DIEGO, CA, March 4, 2005 – AVALON VENTURES, a San Diego-based venture capital firm focused on start-up and early-stage investing in biotechnology and wireless technology, announces the closing of Avalon Ventures VII, L.P. at the target size of $75 million, the largest fund in its 22-year history.

Investors in Avalon Ventures VII include Harvard Management Company, Paul Capital Partners, Grove Street Advisors and INVESCO.

As in Avalon Ventures VI, a $26 million fund formed in 2001, Kevin J. Kinsella and Stephen L. Tomlin will concentrate on start-up and early-stage investments in biotechnology and wireless technology and will primarily, though not exclusively, seek to invest in local opportunities. Walter Tendler, formerly CFO of the firm, will become an Administrative Partner in the new fund.

Kevin J. Kinsella, Founder of Avalon Ventures, commented, “We were extremely gratified at the strong level of interest in what is essentially the first Avalon fund offered to institutional investors. While we had far more investor interest than we could accommodate, we are pleased to have such a strong group of limited partners and believe that the $75 million self-imposed ceiling on the fund is appropriate to pursue the many exciting early-stage opportunities we see before us.”

“San Diego’s world-class position in biotechnology and wireless offers an extraordinarily rich set of early-stage venture opportunities. With the new fund we look forward to continuing our success in working with great entrepreneurs, scientists and engineers to create and develop exciting new companies in these targeted industries,” said Stephen Tomlin, Managing Member.

Avalon Ventures has been founding and investing in technology companies since 1983. Earlier Avalon funds were backed by venture capital firms including Kleiner Perkins, Sequoia, IVP, NEA and Sprout. While Avalon has successfully invested broadly in high technology and biotechnology in the past, the firm presently concentrates solely in its two target areas where it sees the greatest regional opportunity. Avalon pays special attention to breakthrough technologies developed in world-class labs and research centers and engages in projects often well before a complete business plan is developed or a management team is in place.

About Avalon Ventures

Avalon Ventures is one of Southern California’s oldest and most successful venture capital firms. Since its inception in 1983, Avalon Ventures has invested in 38 companies, of which 16 completed initial public offerings, 8 were acquired, 10 are still privately owned and 4 were either dissolved or liquidated. Recent investments include Ambit Biosciences, Vocera Communications, Sytera and Figure 8 Wireless (acquired by Chipcon in January of 2005). Past investments include Vertex Pharmaceuticals [VRTX], Neurocrine [NBIX], Onyx Pharmaceuticals [ONXX] and Synaptics [SYNA].