PRESS ARCHIVE

NextStage Client, Ethidium, Launches New ASP Service

Collegeville, PA – September 14, 2004 – Philadelphia-based Ethidium Health Systems today launched a break-through ASP version of Evolution EMR tm, its Electronic Medical Records (EMR) software system for small- to medium-sized physician practices. The launch of this new technology marks the world’s first implementation of the open EHR (Electronic Health Record) standard for electronic health record interoperability. Evolution EMR tm is now available entirely over the Internet for those physicians who want a better, faster, cheaper way to securely manage their patient records. Now, doctors have direct access to a variety of patient medical records from anywhere, at any time, on any device.

Since February of 2004, NextStage has been working with Ethidium to develop and execute strategies to improve business operations and secure financing.

Business Improvement
NextStage was engaged to provide refinements to Ethidium’s competitive positioning and go-to-market strategies. The team was also tasked with development of Ethidium’s advisory board.

“We worked with Ethidium to focus its resources and optimize its chances for driving revenue,” says Dan McKinney, co-founder and managing partner at NextStage. “We helped them to refine their targets, identifying specific customer needs and how Ethidium can uniquely satisfy those needs. We also identified potential competition and developed a competitive positioning strategy for the firm.”

In addition, NextStage evaluated Ethidium’s potential routes to market, with a strong focus on product and distribution. One result of that effort was the refinement and promotion of Ethidium’s innovative clinical information management software, the e-Health Platform. The e-Health Platform is a powerful modular system that allows for the quick addition of extra functionality, including patient appointment scheduling, secure patient-physician messaging, and electronic transacting of lab results, prescriptions, and referrals. Another was the development of an effective channel partner program. Today, the NextStage team is hard at work evaluating Ethidium’s best routes to market, making introductions to potential channel partners, and assisting with negotiation of agreements.

Investment Preparation
NextStage’s first order of business was to help Ethidium define its use of cash with milestones for investors. As part of a detailed use of funds, NextStage refined Ethidium’s financial models and developed a sound capitalization plan. The team also modeled future capitalization rounds and tied it to current investor expectations and the company's financial projections.

Investment preparation also involved development of Ethidium’s investor materials, including creation of an investor executive summary and refinement of their investment presentation.

“NextStage is instrumental in helping us through the investment process,” adds Matias Klein, president and CTO of Ethidium. “Their vast experience as venture capitalists allows them to effectively assist with due diligence preparation and negotiation of deal terms. These are huge value-adds for Ethidium.”

Under NextStage’s watch, Ethidium will continue to enhance its electronic medical records solutions and seek additional financing. In the near term, research and development will center on the ASP-enabled e-health Platform, with the creation of additional modules and customization alternatives.

According to Klein, “NextStage has committed themselves to our cause. With their investment of time, we intend to well exceed our Year 2005 business objectives.”

About NextStage Advisors
NextStage Advisors is a business advisory firm that helps early- and growth-stage companies increase their probability for funding. Services are offered as part of a three-stage process: Business Model Assessment, Growth Roadmap Development and Investment Preparation. The keys to NextStage’s success are four-fold. First, the NextStage team has experience as both VCs and entrepreneurs, placing more than $300M in venture capital. Second, NextStage provides its clients with real, objective counsel and tools to help them grow. Third, NextStage’s team is backed by a proven methodology that focuses on fundamental business improvements that have meaning to potential investors. Fourth, NextStage is connected. They have a valuable network of professionals that are ready to invest in companies with good products, services and management teams. For more information, please visit the NextStage web site at www.nextstageadvisors.com.