Kernel Capital

CORK Ireland, 20 Sept 2011: Kernel Capital through the Bank of Ireland MedTech Accelerator Fund has led a €1.6m investment in neoSurgical Ltd. The syndicated investment comprises of a €500k investment by the Bank of Ireland MedTech Accelerator Fund, with the remainder of the funds provided by Enterprise Ireland and a number of private investors including experienced promoters from the Irish Med Tech industry.

"neoSurgical is an excellent start-up, we are impressed with their cohesive team, whom previously held senior executive positions in Johnson and Johnson Ireland. neoSurgical has developed a strong patent family, excellent product roadmap and the team has vast global experience in selling medical device products," said Dawn Guiney, Kernel Capital.

neoSurgical working in collaboration with practicing surgeons is committed to developing and delivering innovative products that enable simpler, safer and more efficient laparoscopic abdominal surgery for better patient outcomes. The company's lead product neoClose* offers a new, superior method of closing laparoscopic wounds that can reduce or prevent herniation complications while giving hospitals the opportunity to realise significant cost savings.

Laparoscopic or minimally invasive surgery within the abdomen involves 'keyhole' incisions some of which may require closure. Ineffective closure can lead to an operative complication called a hernia, the complication rate of which is published to be in up to 3.1% and can be significantly higher in obese patients. In the US it has been estimated to cost the healthcare system in excess of $20,000 per patient to repair the hernia.

Commenting on the announcement, Dr. James J. Browne, President of National University of Ireland, Galway (NUI Galway) which is an investor in Kernel Capital said: "NUI Galway recognises the importance of translating research into innovative products. I am delighted that the MedTech Accelerator Fund, in which NUI Galway is a partner, is investing in neoSurgical Ltd. I wish neoSurgical every success."

Donal Duffy, Head of Enterprise Ireland Relations, Bank of Ireland said: "Bank of Ireland is very pleased to add neoSurgical Ltd to the list of companies supported through the Bank of Ireland MedTech Accelerator Fund managed by Kernel Capital. This funding will enable the company develop and deliver innovative market leading products and take their place in the global med tech market."

Welcoming the announcement, Seamus Bree, Director for West Region at Enterprise Ireland, said: "We have no hesitation in co-investing in NeoSurgical. This cutting-edge company, although fairly new, is a very innovative and growing player in the prospering medical devices sector. NeoSurgical's commitment to research and development is impressive and leaves no doubt that this Galway-based company has great potential to internationalise their business."

Barry Russell, CEO, Neosurgical Limited added: "The neoSurgical team is proud to have reached this significant funding milestone and in particular to have secured Kernel Capital as an investor with their great knowledge of our sector and strong validation of our technical and commercial roadmap. This investment will enable us to complete our device development and take our place in the global med tech market. neoClose* is the first in a portfolio of medical device projects that neoSurgical plan to develop to market in the coming years with the associated positive spin off to the Irish economy in terms of high value jobs and exports."

# # #

For further information please contact:

Orla Rimmington, Operations Director, Kernel Capital
Tel: +353 21 4928974 / Fax: +353 21 4928977

Notes to Editors:

About Neosurgical www.neosurgical.com
neoSurgical Ltd is an emerging medical devices company that develops innovative products intended to make Laparoscopic abdominal surgery safer, easier, and better for both the surgeon and patient. The Company operates from its laboratories in Galway, which facilitates the product development process from idea conception, through clinical evaluation to the marketing phase. The company has previously collaborated with researchers in NUI Galway.neoSurgical has a highly experienced Management team with international experience of the Medical Diagnostic and Device sector. CEO Barry Russell, previously worked with Johnson & Johnson Ireland in Sales and Marketing roles through to Business Director role, he oversaw significant surgical businesses for the Irish market. Ronan Keating, R&D Director, has over ten years postgraduate experience within the Start-Up and Multinational medical devices sectors, with MedNova and Abbott Vascular. Chairman Pauric O'Grady was previously Managing Director of Johnson & Johnson Ireland and Richard Dunphy, Director of Finance & Operations also worked in a senior financial role in Johnson & Johnson Ireland. Diarmuid O'Riordain, Consultant Surgeon, Clinical Director has 25 years of Surgical Experience and has specialist expertise in Colorectal,Gastrointestinal Surgery and Laparoscopic Surgery. Together their approach is based on the concept of closing the loop between clinical need, market demand and technology response.

About Kernel Capital www.kernelcapital.ie

Kernel Capital and its associate Life Science investment firm Seroba Kernel have in excess of €196m under management in six separate Venture Capital funds, investing in ICT, Life Science and general seed and early stage investments. These funds are supported by Enterprise Ireland, Bank of Ireland, University of Limerick Foundation, NUI Galway and a range of other financial institutions. They have invested in Kernel Capital's portfolio of 51 companies which collectively employ in excess of 800 people and have been granted over 150 scientific patents. Kernel Capital and Seroba Kernel are committed to dynamic, innovative, knowledge based companies and led in excess of €96m in syndicated investment in 2010. Kernel Capital believe that it is an exceptional time for investment.

Bank of Ireland Seed and Early Stage Equity Fund

The Bank of Ireland Seed and Early Stage Equity Fund is a €32m Fund that invests in start-up and early stage companies, with a focus on export orientated high potential start-up companies that operate in the technology (including green technology), food and financial services sectors, in addition to supporting patent and patent pending projects within Irish universities. It is managed on behalf of Bank of Ireland and the other partners by Kernel Capital. This fund comprises of an investment by Bank of Ireland, Enterprise Ireland, University of Limerick Foundation and NUI Galway. The €10m Bank of Ireland MedTech Accelerator Fund is part of this Fund.

About Enterprise Ireland www.enterprise-ireland.com

Enterprise Ireland, the Irish government agency responsible for the development and growth of Irish industry, is actively involved in supporting early stage high potential start-ups. With over 80 new direct equity investments annually in these businesses, and through its investment in 41 seed and venture capital funds, Enterprise Ireland is now the largest early stage VC investor in Europe in terms of the number of investments made. In addition, through its network of 31 international offices, Enterprise Ireland actively supports Irish companies to grow their export markets and create valuable jobs in Ireland.

About NUI Galway

NUI Galway is one of Ireland's foremost centres of academic excellence. Over 17,000 students undertake an extensive range of studies at the University, which is renowned for the quality of its graduates. NUI Galway is a research-led University with internationally recognised expertise in areas including Biomedical Science and Engineering, Web Science, Human Rights, Marine Science, Energy and Environmental Science, Applied Social Sciences and Public Policy, and Humanities, in particular literature, theatre and Irish Studies.For more information visit www.nuigalway.ie.