Versant Ventures and Advanced-HR Launch Initiative to Build Competitive Online Data Source for Early-Stage Healthcare Companies

Complete Offering to Provide Real Time Stock and Pay Survey Intelligence for Medical Device, Healthcare Services, Healthcare Information Technology & Life Sciences Sectors

SARATOGA, CA, October 9, 2001

Advanced-HR, Inc., an online compensation intelligence company headquartered in the Silicon Valley, today announced a collaborative initiative with Versant Ventures, a Menlo Park-based venture capital firm that invests in early-stage healthcare companies. The combined efforts of the firms will deliver an online competitive stock and pay data source to the decision makers for early stage healthcare companies in early 2003 through Option ImpactT, Advanced-HR's online compensation data and application system.

Option Impact, launched by Advanced-HR in 2000, currently provides real time compensation intelligence to more than 400 information technology pre-IPO companies, their venture investors and service providers. The web-based application provides pre-IPO companies with a secure online system for managing their critical information about stock and pay. Data from each customer is then aggregated in a confidential data mart and the real-time competitive survey information is delivered online, enabling pre-IPO companies and their venture investors to make informed decisions about competitive pay and stock.

"We are excited to have the support of Versant Ventures in building this long-needed data source that is focused exclusively on the healthcare industry," said Dee DiPietro, Founder and CEO of Advanced-HR. "We have worked closely with venture capital firms and their portfolio companies since our founding and have been very impressed with Versant Venture's demonstrated commitment to using its resources and considerable experience to support their portfolio company management teams. Through the firm's active efforts in communicating this initiative, not only their portfolio companies but also to other healthcare venture firms across the nation, we anticipate being able to rapidly build this unique new pay and stock option data source for launch early next year."

The healthcare industry has typically "made do" when it comes to essential market-based data needed to make certain that stock and pay practices are competitive. Most of their resources have been provided through conventional survey methods where companies need to spend an inordinate amount of time responding to survey questionnaires. The "competitive" nature of the data returned to the companies quickly becomes out-dated, as these data sources do not have a mechanism for updating survey data. Additionally, the data sources do not provide the right combination of stock and pay information that is needed to effectively address the competitive pre-IPO labor market.

Versant Ventures invests exclusively in pre-IPO healthcare companies representing the largest market opportunities in the medical devices, healthcare services, healthcare information technology and life sciences industries. "To successfully emerge from the turbulent period of early stage corporate development, our portfolio companies need the very best employees and executive teams," said Robin Praeger, Chief Financial Officer of Versant Ventures. "Advanced-HR's Option Impact system gives our portfolio companies the unsurpassed combination of online information management applications and real time competitive data that are needed to put together exactly the right people who will make the company successful. In working with Advanced-HR, we can help to build the services that our portfolio companies need to excel in human capital management."

About Advanced-HR
Advanced-HR, Inc., founded in 1997, is widely recognized as the first and only company to provide new technology enterprises with the online, real-time intelligence necessary for developing strategies to successfully manage investments in human capital. In the year 2000, Advanced-HR launched the online compensation design product, Option ImpactT - the nation's first real-time source of competitive stock and pay information. By offering pre-IPO companies the real time information as well as a unique online human resources information system (HRIS), the company eliminates the speculation and guesswork currently involved in structuring stock and pay packages.

For more information about the company's online solutions call (408)872-3000 or visit Advanced-HR at www.advanced-hr.com.

About Versant Ventures
Versant Ventures is a healthcare-focused venture capital firm formed with the sole purpose of partnering with leading entrepreneurs to build and foster new companies that will make significant contributions to the industry.

Founded in November 1999 by healthcare investors from three successful venture capital firms, Brentwood Venture Capital, Crosspoint Venture Partners and Institutional Venture Partners, Versant Ventures was built to execute a simple concept - the best venture capital is done by investors who have "been there, done that" as entrepreneurs themselves. The seven founding managing directors were among the first in the industry to create a critical mass of expertise and capital dedicated exclusively to the healthcare sector. Backed by a core team of veteran managers and entrepreneurs, considerable financial resources and a broad network of contacts, Versant Ventures nurtures relationships of lasting value through every stage of business development and growth. The result is a track record of building winning companies like Tularik, Access Health, Pharmacopeia, Biopsys, Coulter and Symyx.

For more information on Versant Ventures call (650) 233-7877 or visit the web site at www.versantventures.com.

Option ImpactT is a trademark of Advanced-HR, Inc.
Other products mentioned are trademarks of their respective owners.

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