Alteer Corp. Expands With Financing Led by Skyline Ventures; Investment Endorses Future Business Plans in Meeting the Demand for Alteer's Product.

Business Editors & Health/Medical Writers

IRVINE, Calif.--(BW HealthWire)--June 24, 2002

Alteer Corp., a leading provider of integrated software applications for physician offices, today announced $4.5 million in financing led by Skyline Ventures.

Financing was completed earlier this year and included existing investors -- Kingsbury Capital Partners, Bluestem Capital and Edgewater Private Equity. As part of this transaction, Stephen J. Sullivan, M.D., Partner, Skyline Ventures, has joined the Alteer board of directors.

"Alteer is an exciting new investment for Skyline," said Dr. Sullivan. "We believe the Alteer team has produced the best product ever developed for this market. Physicians today are frustrated with the day-to-day operations of their businesses and concerned with how to comply with forthcoming regulatory guidelines. After visiting several customers, it became clear to us that the Alteer offering dramatically improves the lives of those who work in these businesses.

"This results in significant time and dollar savings for the practices as well as quality improvement for patients. We believe Alteer is well positioned to capitalize on a very large, growing market as evidenced by the company's recent successes."

"For the past two years, we have stayed focused on our market, our product, and our business model," stated Charlie Hearn, President and CEO of Alteer Corp. "This has resulted in a rapidly increasing and satisfied customer base of physician practices in 26 states. We are proud to have Skyline view the opportunity as we do. Dr. Sullivan and the Skyline team will be a great asset as we execute our expansion plan," continued Hearn.

"Venture funding in the healthcare sector is clearly down from years past," said Dick Allen, an early investor and Chairman of the board of Alteer. "Skyline's participation as a new lead investor coupled with support from the existing investment team is a testament to Alteer's technology advantage, growing customer base and seasoned management team."

About Alteer Corp.

Alteer provides a complete solution for physician offices of any size. Alteer's Internet-based software is the only integrated platform that automates the entire workflow in a physician's office -- from scheduling to charting to billing and patient messaging. Designed to eliminate paper and accommodate changes in regulatory compliance, Alteer reengineers workflow, patient flow, information and document management resulting in increased operational efficiency, better managed financial performance and enhanced quality of patient care.

A private company with headquarters in Irvine, Alteer markets its products through a direct sales channel in conjunction with distribution partners in key regions across the United States. For more information, visit www.alteer.com.

About Skyline Ventures

Skyline Ventures, formed in 1997, is a nationally-known firm that specializes in hands-on investing in early stage healthcare companies. Skyline Ventures' initial investment is usually made at the time of a company's first venture round, and Skyline Ventures often becomes the lead investor. Skyline focuses on drug discovery tools, biotechnology, medical devices and healthcare information technology. The company has approximately 20 companies in its portfolio, including a handful it helped found and more than a dozen in which it has played an active, albeit non-founding role. The firm currently has $250 million under management. For more information, visit www.skylineventures.com.