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For Immediate Release:                           Contact:

July 19, 2006                                                       Gene Eagle, VP Development Finance (501) 682-5903

                                                                                Derrick Rose, Communications Mgr.  (501) 682-5904


Venture Fund to Target High-Growth

Medical and Biotechnology Companies in Arkansas


Cimarron Capital Partners, LLC, the Designated Investor Group for implementation of the Arkansas Development Finance Authorityís (ADFA) venture capital program, officially closed on its 4th venture investment on June 30, 2006.  The $4 million commitment was awarded to Memphis Biomed Ventures II, L.P. (MBV), a private venture capital firm building a $50 million diversified portfolio of equity investments in high-growth medical device and biotechnology companies.

MBVís principal office is in Memphis, TN.  The firm focuses its investment activity primarily in the Southeastern (including Arkansas) and Midwestern regions of the United States.  This capital pledge brings with it a commitment from MBVís management team to consider all credible deals coming out of Arkansas that fit within its investment parameters.  To facilitate this, MBV will organize and maintain a deal origination system in Arkansas which includes an annual screening of UAMS technologies, training lectures for interested technology transfer and academicians in how to commercialize medical technology, introductory events for business people interested in building medical technology companies and an inclusion of appropriate Arkansas technology leaders in MBVís annual Musculoskeletal New Ventures Conference.  In addition, for those Arkansas technology transfer offices desiring it, MBV will provide input on how to package and present what makes for a more compelling investment opportunity to the venture capital community. 

MBV anticipates investing in an aggregate of ten (10) to fifteen (15) entities in the health care industry, including medical device and biotechnology companies with a particular interest in companies developing product solutions for musculoskeletal disease. The fund expects to invest at various stages of development from seed and early stage financings to later-stage deals.

This is the 4th capital pledge made by ADFA since the passage of the Venture Capital Investment Act (The Act) in 2001.  The Act authorizes ADFA to make a capital guaranty of up to $70 million to capitalize a private institutional partnership fund for the state of Arkansas.  This fund is now known as Cimarron Capital Partners, LLC.  Its goal is to invest in professionally managed venture capital funds who will be visible and who will aggressively pursue venture investment opportunities in Arkansas.

ADFA serves as the contracting entity to Cimarron Capital Partners LLC., provides balance sheet support and is actively engaged in program oversight.



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