Radianse Announces Final Close of Series A Financing,
Kaiser Permanente and Partners Healthcare entities invest in healthcare IPS

Company's active-RFID indoor positioning solution (IPS) seen as core technology for advancing patient throughput, improving asset utilization and increasing safety

Lawrence, MA, December 02, 2004 - Radianse, Inc., a provider of indoor positioning solutions (IPS) for healthcare using active radio frequency identification (active-RFID), announced the final close on its $11 million Series A financing round with a $2 million investment. Kaiser Foundation Hospitals, Inc. and The Permanente Federation LLC-Series D, and Partners Healthcare System and Pooled Investments Account, also a Partners entity, have invested more than half of the $2 million; the investment balance comes from private investors. In July, the company received $9 million in financing led by HLM Venture Partners and Partech International with participation from Ascension Health Ventures.

Broad interest, company committed to proving value

Radianse has installed its solution in several leading institutions including the founding Partners Healthcare hospitals, Brigham & Women's Hospital and Massachusetts General Hospital (MGH). Some other installations include Hannibal Regional Hospital, Hannibal, Missouri, and St. Vincent's Hospital in Birmingham, Alabama.

At MGH, where a Radianse IPS has been installed across perioperative services for two years, a study funded by the National Institutes of Health is underway to validate the use of accurate, time-stamped location data to objectively measure care processes. A previous study at MGH proved the accuracy of the system, and work at Brigham & Women's has contributed to the company's ability to prove the fast return on investment of a Radianse IPS.

The company also has secured development and distribution agreements with healthcare solutions providers and medical device companies, who have integrated Radianse technology into their software applications and equipment.

"Kaiser Permanente has been researching the potential for active-RFID to make a positive impact on healthcare: we find the Radianse approach and its founders to be distinguished on several fronts," said Chris Stenzel, senior vice president of Kaiser Permanente's venture capital and corporate development group.

"Radianse knows healthcare, understands its complexities and has designed a solution that we see as important to advancing cost-effective patient care and increasing safety while reducing asset losses. We are pleased to have the opportunity to invest in Radianse and look forward to building on the successes they have already achieved."

"The addition of Kaiser Permanente to the healthcare knowledge base we rely upon for strategic support is a tremendous advantage for Radianse, and we have long relied on insight from Partners Healthcare," said Michael Dempsey, Radianse president and chief executive officer. "Each clearly recognizes the importance of affordable, simple and accurate indoor positioning solutions as a pervasive technology that drives healthcare efficiencies."

About indoor positioning

An IPS provides the indoor corollary to the global positioning system (GPS) - which has achieved tremendous success as a commercial technology in the past five years as receivers have become less costly and complex. A Radianse IPS affordably, accurately and easily identifies where people and objects are located. Reducing cost and complexity and ensuring accuracy are central to IPS becoming as successful as GPS, particularly in healthcare where expensive systems and inconsistent results often rendered traditional location solutions impractical.

About Kaiser Permanente Ventures

Kaiser Permanente is leveraging its unprecedented resources and health care expertise to selectively invest in entrepreneurial companies. KP Ventures, the corporate venturing arm of Kaiser Permanente, has built a portfolio of 18 venture investments that have the potential to:

• Support Kaiser Permanente's core mission by improving quality, service and affordability for our members
• Stimulate innovation in or introduce new capabilities to the Kaiser Permanente organization
• Generate highly competitive rates of return

About Partners HealthCare

Partners HealthCare was founded in 1994 by Brigham and Women's Hospital and Massachusetts General Hospital. Partners is developing an integrated health care delivery system throughout the region that offers patients a continuum of coordinated high-quality care. The system includes primary care and specialty physicians, community hospitals, the two founding academic medical centers, specialty facilities, community health centers, and other health-related entities. Partners HealthCare is a non-profit organization.

About Radianse, Inc.

Radianse, Inc., Lawrence, MA, provides indoor positioning solutions (IPS) to track medical equipment, patients and staff, combining active-RFID with a patent-pending location algorithm to deliver the proven accuracy and return on investment hospitals require. Radianse adheres to an open systems approach to location solutions, shunning exclusive arrangements it sees as limiting effectiveness across a healthcare campus. The company was recently named an "Up & Comer" by Healthcare Informatics. Hospitals in the U.S. and Europe use Radianse solutions to reduce asset shrinkage and excess rentals and improve staff efficiency, resource utilization and overall efficiency, safety and patient flow. The Radianse Ready™ partner certification program gives device manufacturers and application providers the training, support and warranties to ensure consistently high performance of Radianse location software, active-RFID-tags and LAN-ready receivers.

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