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&nbsp;<font face="verdana, verdana, arial, geneva, helvetica" size=1 color="white"><b>For Jeffrey Dasovich, Enron</b></font>
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<b>VENTURE <br>MARKET <br>SUMMARY </b></font>
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<table border="0" width="90%" cellspacing=0 cellpadding=0><tr><td><font face="verdana, arial, geneva, helvetica" size="2">The biggest news of the day was Skyline Ventures, which makes early-stage healthcare and life sciences investments, announcing that it landed $150 million in committed capital for its new fund, Skyline III, and its affiliated fund, Skyline Expansion Fund. Skyline plans to invest as much as $10 million to $12 million per portfolio company over the course of several venture rounds through Skyline III, with typical initial investments ranging from $4 million to $5 million. Skyline III will focus on early-stage investments in drug discovery tools, biotechnology, medical devices, and healthcare information technology. The Skyline Expansion fund will focus on mezzanine-stage investments.<br><br>Monday was a quiet day for fundraising went with nine companies raising
$60 million, but IronPort Systems, an Internet messaging technology firm, is expected to announce its launch today with backing from investors including Hotmail founders, Sabeer Bhatia and Jack Smith. The company has also entered into a partnership with Dell Computer. IronPort, which raised a $3.9-million seed round in February, was founded a year ago by CEO Scott Weiss, a former executive with Microsoft and Hotmail, and chief product officer Scott Banister, founder of Listbot, an e-mail list hosting service acquired by Microsoft.<br><br>Meanwhile, there were more shakeups at Mahi Netowrks. The optical transport switch router developer that laid off a third of its 300-member staff in September said CEO Greg Peters has left the company and the company has appointed
Chris Rust, partner with Sequoia Capital, as an interim CEO as it searches for a permanent replacement. Elsewhere SANgate lost its CEO after EMC won a ruling on Doron Kempel&#39;s non-compete agreement. Mr. Kempel, a former exec at EMC, can&#39;t rejoin SANgate until next August.</font></td></tr></table>
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<b>
<font face="verdana, verdana, arial, geneva, helvetica" SIZE=2 color="black">
The complete text of the stories below, as well as 19
			additional venture-capital and private-company stories,
			are available today exclusively to subscribers to our
			new, premium service, VentureWire Professional. <a href="http://professional.venturewire.com/m2_professional.asp">Find
			out more.</a>
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<font face="verdana, arial, geneva, helvetica" size="2"><b>Healthcare Outlook</b></font>
<br><font face="verdana, arial, geneva, helvetica" size="1">
San Francisco Airport Marriott<br>January 22, 2002<br><br></font>
<a href="http://www.healthcareoutlook.com/">
<img border="0" height="110" width="82" align=left
src="http://venturewire.com/ads/110x82ads/Friedman.jpg"
alt="Healthcare Outlook"></a><font face="verdana, arial, geneva, helvetica" size="1"><b>Dr. Michael Friedman</b><br>SVP, Research & Development,<br>Pharmacia Corp.<br><br clear="all">
<br>
If it&#39;s an expert viewpoint from both sides of the regulatory divide you&#39;re looking for, Michael Friedman&#39;s superbly qualified to ask. A former acting commissioner of the FDA, and currently head of research at Pharmacia, he understands both the drug regulatory process and the pharmaceutical research and development process intimately. He bridges all the key areas on what it takes to get a drug through development and approval. On October 30th, it was announced that he will spearhead the Pharmaceutical Research and Manufacturers of America&#39;s (PhRMA) initiative to protect public health as PhRMA&#39;s Chief Medical Officer for Biomedical preparedness. <a href="http://secure.technologicpartners.com/hcoregister.asp"> Register your place today to hear his address at Healthcare Outlook </a></font>

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<br clear=all><table cellpadding=4 BGCOLOR="#FFFFBB"><tr><td><font face="courier" SIZE=2 color="black"><center><img border="1" height="60" width="120" src="http://venturewire.com/ads/120x60ads/dealbooks.gif" alt="DealBooks"></center>
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<br>provides a daily e-mail digest of what you need to know to
<br>get down to business before the opening bell. See for yourself.
<br>Read today&#39;s edition of DealBook available at:<br>
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<font face="verdana, verdana, arial, geneva, helvetica" SIZE=2 color="black"><b>NOTABLE DEALS</b></font><br><br>
<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwIPNIKIJJJI"><b><font face="verdana, arial, geneva, helvetica" size="2">Skyline Ventures Closes Healthcare Fund with $150 Million</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=IPNIKIJJJI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">PALO ALTO, CALIF. -- Venture firm Skyline Ventures, which makes early-stage healthcare and life sciences investments, announced that it has closed $150 million in committed capital for its new fund, Skyline III, and its affiliated fund, Skyline Expansion Fund.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.skylineventures.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.skylineventures.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwLJNLLJHJJI"><b><font face="verdana, arial, geneva, helvetica" size="2">Net Messaging Firm IronPort Launches, Partners with Dell</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=LJNLLJHJJI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">SAN BRUNO, CALIF. -- IronPort Systems, an Internet messaging technology firm, has launched, with backing from investors including Hotmail founders, Sabeer Bhatia and Jack Smith. The company has also entered into a partnership with Dell Computer.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.ironport.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.ironport.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwHHNIHJJJJI"><b><font face="verdana, arial, geneva, helvetica" size="2">Mahi Loses CEO, Sequoia&#39;s Chris Rust is Interim Chief</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=HHNIHJJJJI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">PETALUMA, CALIF -- Mahi Netowrks, a developer of an optical transport switch router, said CEO Greg Peters has left the company. Ron Longo, vice president of marketing, sales, and services,  said the company has appointed Chris Rust, partner with Sequoia Capital, as an interim CEO as it searches for a permanent replacement.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.mahinetworks.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.mahinetworks.com</font></a>
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&nbsp;<a href="http://alert.venturewire.com/adv.asp"><u>advertise</u></a><br>
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<a href="http://venturewire.com/index.asp"><font face="verdana, verdana, arial, geneva, helvetica" SIZE=2 color="black"><b>VENTUREWIRE INDEX</b></font></a>
<a href="http://venturewire.com/index.asp"><img alt='VentureWire Index' border='0' src="http://208.185.40.7/charts/images/newsAVWIX.jpg"></a><br>
<font face="verdana, arial, geneva, helvetica" size="1" color="gray">429.0 &nbsp; -1.70%</font>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwINQHKPJJJI"><b><font face="verdana, arial, geneva, helvetica" size="2">Chem Tech Firm Ionalytics Spins Out From NRC with $2M Seed</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=INQHKPJJJI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">OTTAWA -- National Research Council Canada (NRC) announced the launch of Ionalytics, a spin-out from the Chemical Metrology Group at NRC&#39;s Institute for National Measurements Standards (INMS). With its launch, Ionalytics, a developer of chemical analysis systems for mass spectrometers, also received $2 million in seed funding from Genesys Capital Partners.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br></td></tr></table><br>
<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwMJHKMIIJJI"><b><font face="verdana, arial, geneva, helvetica" size="2">E-Payment Firm Clear2Pay Cashes $1.6 Million First Round </font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=MJHKMIIJJI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">ZAVENTEM, BELGIUM -- Clear2Pay, a provider of software and services to enable financial institutions to deliver Internet-based payments, said it raised EUR 1.8 million ($1.6 million) in its first round of funding.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.clear2pay.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.clear2pay.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwNQJIPLJJJI"><b><font face="verdana, arial, geneva, helvetica" size="2">Medical Imaging Firm Inphact Hits On $25M in Fourth Round</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=NQJIPLJJJI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">NASHVILLE, TENN. -- Inphact, a provider of Web-based medical imaging services and software, said that it received $25 million in fourth-round convertible debt funding.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.inphact.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.inphact.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwQLJKIHIJJI"><b><font face="verdana, arial, geneva, helvetica" size="2">Oracle ASP Appshop Lands $15 Million in Second Round</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=QLJKIHIJJI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">FREMONT, CALIF.  -- Appshop, an independent Oracle application service provider, said it received $15 million in its second round of funding.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.appshop.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.appshop.com</font></a>
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<br clear=all><table cellpadding=4 BGCOLOR="#FFFFBB"><tr><td><font face="courier" SIZE=2 color="black">Left Out By The Healthcare Miracle?
<br>
<br>Venture capital investment is down, way down, from its
<br>historic heights, but the healthcare sector keeps
<br>attracting money.  Need a crash course?  This January
<br>Technologic Partners will convene our annual Healthcare
<br>Outlook to help you find out where the money is going
<br>and if you should follow. Biotechnology and
<br>Pharmaceuticals: Discovery, Development and Distribution
<br>is a one day meeting in San Francisco.  We&#39;ve invited 50
<br>early-stage companies to present their plans against a
<br>backdrop of three industry roundtables, three keynote
<br>presentations and an investor&#39;s roundtable.  This year
<br>our trademark investor roundtable will be preceded by
<br>a special presentation: Healthcare Investing, The Year
<br>in Review, by VentureWire Managing Editor Ken Andersen.
<br>Come see the future of healthcare investing.
<br>Register today for one of the remaining places.
<br>
<br>Healthcare Outlook
<br>San Francisco Airport Marriott
<br>January 22, 2002<br><br><a target=" _new" href="http://venturewire.com/ads/ad.asp?id=1616">http://www.healthcareoutlook.com</a></font></td></tr></table><br>

<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwHHNKHPHJJI"><b><font face="verdana, arial, geneva, helvetica" size="2">Optium Names Ex-JDS Chief Kevin Kalkhoven as Chairman </font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=HHNKHPHJJI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">ORLANDO, FLA. -- Optium, a fiber optics company that provides optical systems manufacturers with the optical subsystems for transmitting and regenerating 10- and 40-Gbps data, said it appointed Kevin Kalkhoven as its new chairman. The company also said it expects to close its Series C round of financing with roughly $25 million by February.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.optiumcorp.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.optiumcorp.com</font></a>
</td></tr></table><br>

<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwIJMIOJJJJI"><b><font face="verdana, arial, geneva, helvetica" size="2">SANgate Systems Loses Court Fight, Chairman & CEO Resigns</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=IJMIOJJJJI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">SOUTHBOROUGH, MASS. -- SANgate Systems, which develops a platform for networking storage and data management, said its recently appointed chairman and CEO, Doron Kempel, resigned from the company last Tuesday evening after his former employer, data storage firm EMC, successfully argued in the Suffolk County Superior Court of Massachusetts that Mr. Kempel&#39;s 12 month non-compete agreement included his position at SANgate Systems.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.sangate.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.sangate.com</font></a>
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<br clear=all><table cellpadding=4 BGCOLOR="#FFFFBB"><tr><td><font face="courier" SIZE=2 color="black">Calling All High Growth Women Entrepreneurs!
<br>
<br>The application deadline for Springboard:
<br>
<br>Southwest 2002 Venture Capital Forum is December 3, 2001.
<br>If you&#39;re a woman entrepreneur seeking investment capital,
<br>here&#39;s the opportunity you&#39;ve been waiting for. Investors
<br>and Business Professionals, we need your help. Please
<br>encourage all women entrepreneurs to apply to present at
<br>Springboard: Southwest 2002 today!  Interested
<br>entrepreneurs can apply to present at www.springboard2000.org.
<br>Springboard: Southwest is part of a national forum series
<br>that has to date featured 200 women entrepreneurs who have
<br>raised over $615 million in equity capital.  Springboard:
<br>Southwest is produced by the Forum for Women Entrepreneurs-
<br>Texas and Springboard Enterprises and will be co-hosted by
<br>Fidelity Investments and Capital Across America on March 21,
<br>2002 in the Dallas Metroplex.<br>
<a target=" _new" href="http://venturewire.com/ads/ad.asp?id=1600">http://www.springboard2000.org</a></font></td></tr></table>
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