For Immediate Release
SALIX VENTURES ANNOUNCES INVESTMENT IN VERICARE MANAGEMENT, INC.

SAN FRANCISCO, CA (September 30, 2006) -- Salix Ventures announced today its investment in VeriCare Management, Inc., based in San Diego, CA. VeriCare is one of the largest national providers of behavioral health care services to patients in skilled nursing facilities. The company provides therapy and medication management services to these patients.

Salix Ventures led the transaction, and Acacia Venture Partners, San Francisco, and management also participated in the $6.7 million financing. Concurrent with this financing, Dave Flaugh joined VeriCare as CEO and Dennis Walsh joined as EVP Sales and Marketing. Mssrs. Flaugh and Walsh were introduced to VeriCare by Salix and each have long and outstanding track records in the health care services sector. Mr. Flaugh was previously COO of LabCorp, Inc. (NYSE: LH), the second largest publicly-traded laboratory services company in the U.S. Prior to that, he was CFO of National Health Laboratories, one of the four largest laboratory services companies in the U.S. Mr. Walsh was most recently VP Sales of USLabs, an anatomic pathology laboratory company that was acquired by LabCorp in 2005. Prior to that, he was VP Sales and Marketing of Apria Healthcare (NYSE: AHG) during that company's rapid growth phase. Financing proceeds will be used primarily for general working capital purposes. As a result of this investment, Marty Felsenthal, a General Partner of Salix Ventures, will join VeriCare's Board of Directors.

According to Mr. Felsenthal, "By many accounts, 40-50% of all patients in skilled nursing facilities suffer from a behavioral health disorder; however, a much smaller percentage actually receives care. We are very excited to be associated with a company providing critical services to such an under-served market and are further pleased to be working with such an outstanding and experienced new management team."

About Salix Ventures

Salix Ventures manages two venture capital partnerships with approximately $180 million in capital commitments from limited partners. Salix invests primarily in early-stage healthcare services and healthcare information technology companies. With offices in Andover, Nashville and San Francisco, Salix Ventures assists companies across the country through all stages of development.