INSPIRE PHARMACEUTICALS –

Durham, N.C.

Went public on 8/3/2000 at $12 per share

Filing Range: 5.5 mil. shares @ $10 to $12

Shares Outstanding: 24.5 mil. shares

Book Manager: Deutsche Banc Alex. Brown/Chase H&Q/U.S. Bancorp Piper

Jaffray

Company Counsel: Smith Stratton Wise Heher & Brennan

Manager Counsel: Coudert Brothers

Auditor: Pricewaterhouse Coopers LLP

The Company:

Develops later-stage pharmaceutical products in areas currently under-represented in the industry. Areas being considered include chronic obstructive pulmonary disease, especially cystic fibrosis and immotile cilia dyskinesia. The company’s products facilitate the removal of foreign materials from the lungs and increase the flow of mucous out of the lungs, thereby decreasing the chance of an infection.

Venture Backers:

Genentech Corp.

Domain Associates LLC

Burr, Egan, Deleage & Co.

InterWest Partners

Medical Science Partners

Roche

Intersouth Partners

Viking Capital

Polaris Venture Partners

Allstate Insurance Co.

Japan Associated Finance Co. Ltd.

JAFCO America Ventures Inc.

Child Health Investment Corp.

Financing Rounds:

Number of Round Amt.

Round # Round Date Stage Investors ($ thousands)

1 10/01/1993 1 Early Stage 59.0

2 04/01/1994 1 Early Stage 30.0

3 07/01/1994 1 Early Stage 30.0

4 10/01/1994 1 Early Stage 273.0

5 03/01/1995 10 Early Stage 9099.9

6 06/19/1997 6 Early Stage 9540.0

7 09/10/1997 9 Early Stage 3500.2

8 09/10/1998 1 Expansion 910.0

9 12/16/1998 1 Expansion 1510.0

10 04/01/1999 1 Expansion 792.0

11 07/01/1999 3 Expansion 6400.0

12 10/29/1999 4 Expansion 12400.0

13 12/01/1999 1 Expansion 10000.0

Financials:

(Data in $ millions)

Y/E

12/31/99

Total Revenues: $0.6

Net Income: -8.5