Boston Equity Advisors, LLC Raises Capital For Two Medical Device Companies

CANTON, Mass.--(BUSINESS WIRE)--March 24, 2004--Boston Equity Advisors, LLC, a registered broker-dealer and investment banking firm announces the closing of a second round financing for one of it client companies, Arthrosurface Incorporated. Boston Equity Advisors, LLC served as exclusive placement agent to Arthrosurface Incorporated on its second round of financing in the amount of $6,000,000.

Arthrosurface, based in Franklin, MA, has developed the CAP system for resurfacing articular cartilage. Arthrosurface has FDA approved products for use in the hip, shoulder, and great toe. Arthrosurface recently launched product sales of its hip and shoulder products and intends to launch sales of the great toe product in the near future. Arthrosurface has begun an FDA approved clinical trial of its CAP product for repair of lesions on the femoral condyles of the knee.

Steve Ek, Chief Operating Officer of Arthrosurface, commenting on the response received from orthopedic surgeons said, “We are very pleased and excited with the response we have had within the orthopedic surgeon community. It is apparent that a new niche is developing in the treatment of patients ages 45-60 with significant joint disease who are not ideal candidates for conventional or even MIS joint replacements.” Steve Tallarida, President of Arthrosurface, added “It’s all about resurfacing the lesion and restoring the geometry of the joint with minimal resection of healthy tissue.”

Boston Equity Advisors introduced Arthrosurface’s management team to Boston Millennia Partners, a Boston based venture capital firm, during Arthrosurface’s first round of financing that closed in September 2003. Boston Millennia Partners followed its first round investment with an additional investment of $3,000,000 in this second round.

Pat Fortune, a general partner at Boston Millennia Partners said, “Arthrosurface has made significant progress in the marketing of the HEMI CAP implant in currently approved indications as well as in the development of additional applications. Performance of the product in both hip and shoulder patients has been exceptional. In addition, the Company has gained approval in the great toe and has initiated feasibility trials in the knee. Achievement of all these milestones on schedule is a compelling indication of progress. The Company has outstanding commercial prospects and Boston Millennia Partners is very pleased to support the Company’s growth through this new investment.”

The technologies employed by Arthrosurface Incorporated were incubated at STD Manufacturing, Inc., an innovative OEM medical device manufacturer located in Stoughton, MA.

Boston Equity Advisors, LLC helps small and medium-sized companies achieve success by preparing them for, and guiding them through, the process of raising investment capital. The company focuses on private placements of debt and equity with institutional and individual investors. Boston Equity Advisors uses its relationships with investors and leverages the existing relationships that client companies have to facilitate successful financings.

Contacts

Boston Equity Advisors, LLC Arnold E. Freedman, 781-821-4114 freedman@boston-equity.com www.boston-equity.com