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VelQuest Corporation Closes $9.2 Million in Equity Financing - MedEquity
Investors and Chase Capital Partners Lead Financing

Hopkinton, Massachusetts, October 5, 2000 - VelQuest Corporation, a developer of electronic
process management and compliance technology to increase productivity and assure regulatory
compliance in pharmaceutical development laboratories, today announced a $9.2 million equity
financing. The financing, which included participation by several major investment firms, was
led by MedEquity Investors, LLC and Chase Capital Partners. Additional investors included
BancBoston Ventures, GE Capital Commercial Finance's Healthcare Group, and an associate of
North Bay Associates.

MedEquity Investors, LLC is a Wellesley, Massachusetts based private equity firm focused
on providing expansion capital to emerging healthcare-related companies. Chase Capital
Partners is one of the largest global private equity firms with over $20 billion in assets under
management, making it a leading investor in the life science sector.

"This financing is an endorsement of our approach to providing innovative productivity tools
and a new electronic compliance platform to the pharmaceutical industry. Our solution will
enable our customers to bring important new human therapeutics to the market more rapidly.
We are very pleased to gain the confidence of our major new investors, who are providing the
growth capital we will use to drive the next stage of our business expansion,"
stated Ken Rapp,
VelQuest Corporation's President and CEO.

Jeffrey T. Ward, Principal of MedEquity and James W. Fordyce, a private investor, have joined
VelQuest's Board of Directors. "A critical challenge faced by pharmaceutical companies is in-
creasing productivity without sacrificing process control and compliance standards,"
said Mr.
Ward. "After studying this sector in detail, we believe VelQuest offers the only comprehensive
solution and that the company's products will have a significant impact on pharmaceutical
development and commercialization."

 "In addition to its energy and vision, VelQuest's senior leadership has demonstrated success
and the industry experience critical for successful execution of the Company's business strategy,"
commented Mr. Fordyce. "We look forward to continuing our work with the team as VelQuest
advances its electronic process management and compliance productivity tools for the pharm-
aceutical industry."

VelQuest will use the proceeds to support its global sales and marketing strategy, and for gen-
eral corporate purposes.

VelQuest Corporation, headquartered in Hopkinton, Massachusetts, is the leading provider of
Electronic Process Management and Compliance technology, ePMC TM, to the heavily regu-
lated life-science environment including pharmaceutical development, manufacturing, generic
pharmaceuticals, biotechnology companies and contract analytical laboratories. VelQuest's
ePMC solution enables quality controlled automated data collection from networked laboratory
instruments, and it facilitates prompt and easy retrieval of process data from a centrally located
database. VelQuest's innovative and proprietary ePMC solution promotes the collection of
quality data by linking data collection to standard operating procedures and provides a com-
plete history for all process data. Furthermore, the VelQuest ePMC solution serves recent FDA
regulations, specifically Rule 21 CFR Part 11, governing the use of electronic records and sig-
natures in FDA regulated research, manufacturing and clinical facilities.

Currently, VelQuest is deploying its initial ePMC product at several leading pharmaceutical
companies. The company plans to continue to develop additional efficiency and compliance-
oriented technology for the pharmaceutical laboratory environment. Further information re-
garding VelQuest Corporation can be found at
www.velquest.com.

MedEquity Investors, LLC, founded in 1998, is a private equity firm providing equity financing
to growing healthcare-related companies. Recent investments include MediChem Life Sciences,
CB Technologies, Inc. and LeadScope, Inc.

Chase Capital Partners (CCP) (www.chasecapital.com)is a global partnership with over $20
billion under management. It is a leading provider of private equity and has closed over 1000
individual transactions since its inception in 1984, including over 100 investments and $1
billion invested in the life sciences sector. Recent CCP investments in the life sciences sector
include Praecis Pharmaceuticals, Genomic Solutions, Genaissance Pharmaceuticals and Medi-
Chem Life Sciences. Its primary limited partner is The Chase Manhattan Corporation, one of
the largest bank holding companies in the United States with total assets of approximately
$392 billion.

BancBoston Ventures (www.bancbostoncapital.com), the venture capital investment arm of
FleetBoston Financial, has been providing early stage venture capital to emerging growth com-
panies in the healthcare and information technology sectors. Its sister company, BancBoston
Capital, has invested $4 billion in more than 500 companies and is supported by offices in
Boston, Palo Alto, London, Hong Kong, Singapore, Buenos Aires and São Paulo. Targeting
opportunities in information technology, medical devices and biopharmaceuticals, BancBoston
Ventures' healthcare practice has invested in Dyax Corporation, Eos Biotechnology, Microbia,
Inc., NuGenesis Technologies Corporation, Skila, Inc. and Syntonix Pharmaceuticals.

GE Capital Commercial Finance's Healthcare Group (www.gecommercialfinance.com), provides
debt and equity financing to various sectors in the healthcare industry. Since its formation, the
Healthcare Group has provided over $3 billion in financing to the industry.

North Bay Associates are venture capital investors associated with Purdue Pharma and its
associated companies, an international pharmaceutical group.

For further information, contact: Kenneth Rapp (508) 497-9911; ken@velquest.com

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