Vapotherm Completes $5.25 Million Series C Round of Funding

Business Wire, August 14, 2003

Health/Medical Writers

ANNAPOLIS, Md.--(BUSINESS WIRE)--Aug. 14, 2003

Vapotherm, Inc., a privately held manufacturer of respiratory care devices for hospital and home use, today announced the closing of a $5.25 Million third round of financing. New investor, QuestMark Partners, L.P. led the round with a $5.0 million Series C investment with returning investor Maryland Department of Business and Economic Development completing the round from their Enterprise Investment Fund.

"This investment represents an important milestone in the continued growth of our company," said Robert Storey, CEO of Vapotherm. "It will enable us to meet growing demand and provide more clinical support to hospitals and caregivers in our existing markets, while undertaking new initiatives in the home care market that have been under development for the past year."

Vapotherm, Inc. manufactures advanced medical devices to serve people with chronic lung and acute breathing disorders, which totals more than 40 million Americans alone. Its patented flagship product, the Vapotherm 2000i, is an innovative device rapidly becoming the new standard of care in hospitals worldwide for high flow delivery of respiratory gases directly through a nasal cannula. The company is based in Annapolis, Maryland. For more information, visit www.vtherm.com.

Baltimore-based QuestMark Partners is a private equity fund that invests in emerging growth companies. With $450 million under management, the company makes $5 million to $15 million equity investments in later stage companies in the fields of medical technology, information technology, the Internet, and telecommunications. The investment in Vapotherm, Inc. comes from QuestMark's $233 Million Fund II. QuestMark Partners can be found on the Web at www.questmarkpartners.com

Maryland DBED's Enterprise Investment Fund provides direct equity investments in emerging high technology companies with patented/proprietary products or manufacturing processes and a marketing strategy in place. The Enterprise Program works with established companies to move them into their next stage of development.