The company aims to deliver an innovative, low-cost colonoscopy solution called EndoNav's RigiFlexTM disposable Over-the-Scope (OTS) device that eliminates the need for painful sedation and increases procedure throughput. The solution addresses problems with traditional colonoscopy scopes that cause looping and damage to the colon. It is estimated to decrease procedure time, increase revenue, reduce complications, and have a shorter learning curve for physicians. Financial projections estimate the company will have positive net income within 3 years and an overall internal rate of return of 99%.

1. EndoNav Colonoscopy Made Easy Babak Pahlavan Arnav Sharma Ankur Prasad Benjamin Kaun Randal Truong

2. Company Purpose To deliver an innovative, low-cost colonoscopy solution that eliminates the need for sedation and increases procedure throughput

3. Problem Traditional scopes cause pain for patients and damage to colon from “looping” Sedation procedure during colonoscopy is responsible for 90% of complications Large waitlist for colonoscopy procedures

4. Solution EndoNav’s RigiFlex™ disposable OTS Eliminates the problematic “looping” Decreases time per procedure Increase revenue Reduces the need for sedation Fewer complications Shorter learning curve for physicians Reduces the risk for “difficult cases”

5. Why Now In 2001, Medicare started reimbursing colonoscopy screening Substantial increase in demand Lack of a fast & efficient solution Reduction in size of reimbursement by 33% Lack of low cost solutions

6. Market $1B market for disposable colonoscopes* 10.4M procedures per year by 2008 Growth rate of 10% per year 4.4M to 8M procedures from 1999 to 2004 *Source: Boston Scientific announcement (2004)

7. Competition Scope developers Olympus – Traditional scopes, 75% MS Pentax, Fujinon with majority of remainder New scopes - $25K-$40K Disposable OTS developers Boston Scientific New disposable product line USGI shorter OTS than EndoNav Neoguide Needs proprietary supporting equipment

8. Product Disposable Over-the-Scope (OTS) device has telescoping segments that can lock and prevent “looping” Pain + Possible Perforation No “looping”

9. Target Customers Early Adopters : HMO & Teaching Hospitals Early Majority : General Hospitals Laggards : Private Physicians

10. Financing Terms $1.6M in equity financing now To complete trials & market validations 30% stake in company Option to Re-invest after Year 1 at $6M to raise equity stake to 40% $6M to ramp expansion in production & Sales Overall IRR 99%

11. 5-Year Financial Projections 2004 2005 2006 2007 2008 Revenues Total Colonscopies - - 8,969,898 9,687,490 10,462,490 Market Share 0.00% 0.00% 0.11% 0.97% 2.56% Colonscopies - - 9,867 93,969 267,840 Revenues $ 1,480,033 $ 14,095,298 $ 40,175,962 COGS - - 592,013 5,638,119 16,070,385 Gross Profit $ 888,020 $ 8,457,179 $ 24,105,577 Fixed Costs Employees 4 10 12 20 30 Labor Costs $ 480,000 $ 1,200,000 $ 1,440,000 $ 2,400,000 $ 3,600,000 Investment Capital 600,000 2,500,000 780,000 300,000 300,000 Overhead Costs $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 Total Fixed Costs $ 1,380,000 $ 4,000,000 $ 2,520,000 $ 3,000,000 $ 4,200,000 Pre-Tax Income ($1,380,000) ($4,000,000) ($1,631,980) $5,457,179 $19,905,577 Tax $ - $ - $ - $ 2,182,872 $ 7,962,231 Net Income ($1,380,000) ($4,000,000) ($1,631,980) $3,274,307 $11,943,346 Valuation $ 81,857,682 $ 298,583,654 Assumptions Price $ 150 COGS $ 60 Fully Loaded Employee/year $ 120,000 Industry PE Ratio 25 Income Tax 40%

12. The Team