Mountain View, Calif. - (Nov. 26, 2001) - Novasonics, Inc., a medical device company developing high quality ultrasound products, announced today that it has raised $21.5 million in a Series C funding. The company will use this capital to complete the development and launch of its initial product line into the hand held ultrasound market, and to initiate development of future products in its family of advanced ultrasound devices.
Merrill Lynch Ventures, a private equity investment entity affiliated with Merrill Lynch & Co., Inc., is the lead investor in Novasonics' Series C funding round. Additional new investors in the Series C round include Siemens Venture Capital, Texas Instruments Incorporated and Mosaix Ventures. In addition, both of Novasonics' Series B investors, Earlybird, and Frazier Healthcare, are participants in the Series C funding round. Novasonics' Series C financing is one of the largest Medical Device financings this year.
"We are thrilled with the breadth and scope of our investors," said S. Zafar Hamdani, president and chief executive officer of Novasonics. "They each contribute a wealth of business acumen, experience and technical knowledge to the Novasonics team, and will significantly support our efforts as we prepare to deliver industry-leading ultrasound products to our customers."
Dr. Glen W. McLaughlin, chief technical officer of Novasonics stated, "Novasonics unique, patented approach to ultrasound imaging extends existing ultrasound modalities, delivering premium performance in the palm of your hand. This approach enables Novasonics to retain all intellectual property rights, and will help secure Novasonics' position as a leader in advanced ultrasound devices."
About Novasonics

Novasonics is developing high quality hand held ultrasound products that combine enriched features with innovative ergonomics to achieve revolutionary price vs. performance in the global ultrasound market. Novasonics products will be targeted for existing markets that include obstetrics/gynecology, radiology, and cardiology as well as emerging point-of-care markets such as emergency medicine, surgery, and internal medicine. For more information please visit our website: www.novasonics.com
About Merrill Lynch Ventures

Merrill Lynch Ventures is a New York-based wholly owned subsidiary of Merrill Lynch & Co., Inc., and serves as General Partner and Investment Advisor to Merrill Lynch Ventures L.P. 2001 and its affiliates (the "Funds"). The Funds are limited partnerships with $1.2 billion of committed capital formed exclusively for investment by employees of Merrill Lynch & Co., Inc., its subsidiaries and affiliates. The partnerships seek minority interest positions in privately offered equity investments in both U.S. and non-U.S. issuers. Investments have included securities issued in conjunction with financings of companies in an early stage of development, primarily in the technology, telecommunications and healthcare industries. Additional investments include securities issued in conjunction with leveraged buyouts, investments in growth equities, and transactions involving financial restructuring or reorganization.
About Earlybird

Earlybird is an international venture capital fund with about $300 million under management and investment focus on information technology, telecommunications and healthcare. With offices in Europe (Hamburg, Munich) and the US (Palo Alto), Earlybird is well positioned to take advantage of international opportunities and to assist its portfolio companies to gain access to the international market place and financial resources. Earlybird's investment professionals have extensive finance and start-up operating experience and actively support portfolio companies. In addition, a network of experienced industry specialists serves on the Earlybird advisory board and assists Earlybird and its portfolio companies in providing strategic advice and operational support. Additional information about Earlybird can be found at www.earlybird.com.
About Frazier Healthcare

With over $750 million under management, Frazier Healthcare is one of the largest providers of venture capital and growth equity to early-stage and high-growth healthcare companies. Established in 1991, the Frazier Healthcare investment team includes seasoned clinical, scientific, operational and financial professionals who collaborate with entrepreneurs every step of the way.
About Mosaix Ventures

Mosaix Ventures LP is a private equity firm focused on healthcare and life sciences investments in mid- to late-stage private companies and special situation emerging public companies with private equity-like return potential. Mosaix is committed to an investment approach that focuses on supporting experienced entrepreneurs and management teams in their efforts to capitalize on proprietary and innovative technologies with the potential to develop sustainable businesses in attractive markets. ( www.mosaixventures.com).
About Siemens Venture Capital

Siemens Venture Capital GmbH (SVC), a subsidiary of Siemens AG, is the corporate venture organization for all Siemens' businesses worldwide. SVC plays a key role in the Siemens global network of innovation. The goal is to identify and fund investments in emerging and innovative technologies which will enhance the core business scope of Siemens. The investment focus is on technology growth areas such as optical networking, mobile communications, automation software and e-business healthcare solutions within the Siemens business segments such as Information and Communication, Automation and Control, Medical Solutions and Power. SVC is headquartered in Munich, Germany and has offices based in the U.S. in Santa Clara, CA and Boston, MA; and is represented in Tel Aviv, Israel; Siemens currently has investments in more than 70 start-up companies and 25 venture capital funds. For more information please visit our website: www.siemensventurecapital.com
About Texas Instruments

Texas Instruments Incorporated is the world leader in digital signal processing and analog technologies, the semiconductor engines of the Internet age. The company's businesses also include sensors and controls, and educational and productivity solutions. TI is headquartered in Dallas, Texas, and has manufacturing or sales operations in more than 25 countries. Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. More information is located on the World Wide Web at: http://www.ti.com

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Press Contacts:
Linda Nielsen
Director, Business Operations
Novasonics, Inc.
650-230-2732
650-230-2817 Fax
linda@novasonics.com