BATTELLE FORMS BATTELLE VENTURES TO COMMERCIALIZE TECHNOLOGY THAT IT OWNS, MANAGES, OR INFLUENCES

September 19, 2003, Columbus, Ohio-Battelle, one of the world's leading science and technology organizations, announced today the formation of Battelle Ventures-a venture capital fund primarily focused on creating, funding, and growing companies from technologies that Battelle owns, manages, or influences. The fund, a 12-year partnership with committed funds of $150 million, will be directed at seed and early stage technology opportunities.

Battelle Ventures will be led by Dr. Morton Collins, a nationally recognized venture capitalist, who has been the founder and managing partner of four venture funds and has had an outstanding track record in such fields as life sciences, communications, software, and electronic materials. Collins will work closely with Battelle and the four U.S. national laboratories (Brookhaven, National Renewable Energy Laboratory, Oak Ridge, and Pacific Northwest) that it manages or co-manages to commercialize technology and develop ventures.

"We are very pleased to form Battelle Ventures and have a person of Mort Collins' caliber to lead the fund," said Carl F. Kohrt, Battelle President and CEO. "This fund is intended to develop economic and socially valuable technologies in furtherance of Battelle's objectives to get science and technology to the marketplace, form ventures, demonstrate relevance and impact from government science and technology investment, enhance the nation's economic competitiveness, and fulfill our charitable purposes."

Kohrt also noted that, as a charitable trust, Battelle's successes in commercial ventures can mean more in charitable distributions to the communities it serves.

"I am honored to lead the Battelle Ventures fund," said Collins. "Battelle and the national laboratories it manages or co-manages are at the leading edge in many areas of science and technology. We see considerable opportunities to take early stage technology and bring it to the marketplace- in the form of solutions to great national and global problems, new products, and new companies."

Collins and his team have more than 80 years of venture capital experience, have completed more than 45 IPO's, and have invested in over 170 companies. Examples of companies include: ATM (Advanced Technical Materials), California Microwave, Epitaxx, General Automation, Strategic Diagnostics, Tandem Computer, and The Liposome Company. Collins founded DSV Partners in 1968. Collins holds a B.S. in Chemical Engineering from the University of Delaware and M.A. and Ph.D. degrees in Chemical Engineering from Princeton University. He is a member of the National Academy of Science's Research Roundtable and Past Chairman of the National Venture Capital Association.

Collins' team includes Jim Millar, Kef Kasdin, and Ron Hahn. Millar has been actively involved in venture capital since 1984. He spent 12 years with DSV Partners and then co-founded Early Stage Enterprises. (Early Stage Enterprises is a $44 million venture fund which provided 18 Mid-Atlantic companies with their first equity investment.) Prior to entering the venture capital industry, he was employed by Texas Instruments in various engineering and management positions. Millar currently serves on the Board of the National Association of Small Business Investment companies (NASBIC). Ron Hahn has been investing in early stage businesses for 31 years, acting as an officer and/or General Partner for four venture capital organizations. He founded Princeton/Montrose Partners, a venture capital partnership specializing in life sciences technology, agribusiness, food, energy, and natural resources related investments. In 1987, Hahn joined the health care team of Alan Patricof Associates as a General Partner. He co-founded Early Stage Enterprises with Jim Millar in 1996. Kef Kasdin has been involved in developing and executing high technology strategy for more than 15 years. She spent nine years at 3Com Corporation in various senior management and marketing roles. Prior to joining Early Stage Enterprises in 2000, Kasdin developed business plans, recommended strategic partnerships, and served as an adviser for 10 technology start-ups.

Battelle is a global leader in science and technology. It develops and commercializes technology and manages laboratories for government and commercial customers. Headquartered in Columbus, Ohio, Battelle, with the national labs it manages or co-manages, oversees 16,000 staff members and conducts $2.7 billion in annual research and development. Battelle innovations include the development of the office copier machine (Xerox), pioneering work on compact disc technology, fiber optics technology, and medical technology advancements.

For more information, visit www.battelle.org or contact Katy Delaney, Media Relations Manager, at (614) 424-5544 or delaneyk@battelle.org.