Portfolio Profiles – Anthem Capital LP –

BALTIMORE – Anthem Capital LP invests in early-stage Internet, software, telecommunications and life sciences companies within 150 miles of its Baltimore headquarters. The firm does not invest in real estate, financial services, retail, media or natural resource businesses.

Anthem’s freshman vehicle, Anthem Capital I LP, closed above target on $43 million in September 1994 and is fully invested in 16 companies. Limited partners include MBNA American Bank N.A., APT Holdings Corp., the State of Maryland, Advanta Corp. and the Employees’ Retirement System of Baltimore County.

The firm plans to raise Anthem Capital II LP, targeted between $50 million and $75 million, in the first quarter of 2000. Slated for a final close before the end of June, the fund will have a 20% carry and a 2.5% management fee. Managing General Partner Bill Gust expects 25% of the fund to be invested in information technology, 25% in telecommunications, 20% in life sciences, 15% in basic industries and 15% in health care. The vehicle should be fully invested in about 20 companies within the next two to three years, Gust said.

Gust, C. Edward Spiva and Gerald Schaafsma are all general partners who have more than 70 years of combined experience in venture investment, strategic planning and business development. Alexander Perry is an associate.

Anthem prefers to act as a lead investor in a company’s first round of institutional financing, with average deal sizes ranging between $1 million and $2 million. The firm expects to invest about $2.5 million in one company over time.

Anthem’s advisory board is composed of M. James Barrett, chairman and chief executive officer at Sensors for Medicine and Science Inc.; Donna Coughey, chairwoman of the board and president at Mellon Bank; J. Drexel Knight, senior vice president at Bank of America; and Vernon Wright, vice chairman and chief financial officer at MBNA America Bank N.A.

Following is a list of some of Anthem’s portfolio companies:

CyberSystem Technologies Inc. (Cockeysville, Md.) develops and operates integrated supply chain communities for the business-to-business market.

There were no co-investors.

Highway to Health Inc. (Radnor, Pa.) provides comprehensive travel insurance and services that includes a global Internet-based physician scheduling and location service.

Co-investors included Early Stage Enterprises LP.

Immunicon Corp. (Huntingdon Valley, Pa.) develops and sells products for cancer screening and disease management through patented technologies that enable the separation, isolation and analysis of cells and other particles.

TL Ventures, Caanan Partners and MDS Capital were co-investors.

Life Sciences Corp. (Gaithersburg, Md.) makes and distributes state- mandated ignition interlock systems to prevent drunk drivers from starting their vehicles if they fail an automated breathalizer test.

There were no co-investors.

Message Pharmaceuticals Inc. (Malvern, Pa.) develops a technology that promotes the growth of small molecule drugs used for a wide range of diseases. The technology allows the company to take advantage of new protein targets emerging from the ongoing genomic discoveries in biology and medicine.

SR One, Euclid Partners, Oxford Bioscience Partners and GeneChem Technologies Venture Fund were co-investors.

Prima Facie Inc. (King of Prussia, Pa.) manufactures and markets digital video and sensor technology to provide monitoring and surveillance for commercial, armored and law enforcement vehicles.

There were no co-investors.

ScoreBoard Inc. (Herndon, Va.) helps wireless communications carriers isolate, identify and resolve capacity and quality issues within their networks.

Mid-Atlantic Ventures was a co-investor.

Sensors for Medicine and Science Inc. develops miniature optical sensor platform technology, which includes an implantable glucose sensor for diabetics and an oxygen sensor that enables real-time, breath-by-breath analysis for patients.

Co-investors included New Enterprise Associates, HealthCare Ventures, Rho Management Co. Inc. and Abingworth Management Ltd.

Sequoia Software Corp. (Columbia, Md.) develops advanced client-server software products for electronic document management applications.

Baker Capital, Divine InterVentures and Mid-Atlantic Ventures were co-investors.

Systech Solutions Inc. (Cranbury, N.J.) provides pharmaceutical and cosmetics manufacturers with advanced packaging automation technology for product inspection and information management.

Edison Venture Fund and Euclid Partners were co-investors.

Anthem Capital is located at Suite 800, 16 South Calvert Street, Baltimore MD 21202-1305. tel: (410) 625-1510, fax: (410) 625-1735. The firm’s Web site is http://www.anthemcapital.com/.