Inoveon News Release
Inoveon  Closes $16 Million Round of Financing
Funds to be used to enhance marketing efforts and accelerate opening
of diabetic retinopathy patient service centers in new markets


For  Immediate Release: July 30, 2002
Media Contact: Bill Hagstrom, Chief Executive Officer
405.271.9025
info@inoveon.com


OKLAHOMA  CITY [July 30, 2002] - Inoveon Corporation, a  medical services company specializing in detecting, staging  and monitoring diseases of the eye, announced today the  company has closed a $16 million Preferred Series B round of  venture capital financing. The round was led by CenterPoint  Ventures of Dallas, with co-investments by Eli Lilly and  Company, Indianapolis; Massey Burch Ventures, Nashville; Chisholm Private Capital Partners, Oklahoma City; and Prolog Ventures of St. Louis. Additional participants included  Oklahoma Life Sciences Fund, STARTech Seed Fund, Technology  Directors and the Enterprise Oklahoma Venture  Fund.

"This  financing is a critical endorsement of our business model, proprietary technology platform and ability to become a  market leader in this important healthcare segment," says  Bill Hagstrom, Inoveon Chairman and CEO. "The closing of the  B round will allow us to rapidly scale-up marketing  activities, accelerate deployment of new sites and continue  investments in our operations infrastructure."

Inoveon  has developed a patented, highly accurate digital evaluation service for diabetic retinopathy called 3DT, that offers a  less expensive, more efficient solution for primary care  physicians to detect, track and manage patients with  diabetic retinopathy, a leading cause of adult blindness.  The service allows diabetic patients to access a safe,  non-invasive retinal scan at a local Inoveon Patient Service  Center. These images are then transmitted to the Inoveon  Evaluation Center. The images are analyzed and a  comprehensive report with a disease management plan is sent  back to the primary care physician within 48 hours.

Several  independent studies state 96 percent of diabetic patients  make it to the primary care environment at least once a  year, yet only 45 percent make it to an eye care specialist  for a diabetic retinal exam. Because early onset of diabetic  retinopathy is asymptomatic, patients often do not recognize  the need for an exam.

"For  nearly 80 years, Lilly has been dedicated to improving the  lives of people with diabetes. Despite improvements in  glycemic and blood pressure control, diabetic retinopathy is  still the leading cause of new cases of blindness among  working-age people in the United States," says Jim Harper,  Group Vice President, Global Marketing and Sales at Eli  Lilly, who will join the Inoveon Board of Directors. "Early  detection of diabetic eye disease in collaboration with  ophthalmologists is essential in preventing vision  loss."

Inoveon  3DT technology produces images in seven areas of each eye offering a superior method of evaluating diabetic  retinopathy formerly available only in research studies.  Inoveon use of this gold standard technique defined by  National Institutes of Health research protocols delivers  unparalleled accuracy in a clinical setting. In March 2002,  the peer-review publication Ophthalmology published  the findings of an independent clinical validation study of  the 3DT technology, which achieved 98.3 percent sensitivity and 89.7 percent specificity for detection of vision  threatening disease.

"Inoveon  has identified a large market with significant unmet  clinical needs," says David Schaller of CenterPoint  Ventures. "The company's patented technology base, clinical  performance, seasoned management team and market penetration  strategy made for a compelling investment  opportunity."

According  to Hagstrom the company's long-term strategy targets additional diseases of the eye including macular  degeneration and glaucoma. Headquartered in the Oklahoma  Health Center Research Park the company currently has 35  employees and expects to double its workforce in the next 12 months.

About Inoveon:
Inoveon Corporation is the industry leader in the detection, staging and monitoring of diabetic retinopathy. Founded in 1997, Inoveon Corp. has successfully completed more than 7,000 clinical iScan retinal imaging studies. The service is delivered in partnership with large primary care and endocrinology clinics to improve the quality, convenience, economics, and medical outcomes of patients at risk for vision loss due to diabetes. Placing the service in the primary care environment helps to increase patient  compliance with recommended annual dilated retinal evaluations and provides clinically rich information to improve patient care. For more information, visit the Web site at www.inoveon.com.


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