Axolotl Corp. Secures $17.7 Million in Series D Financing; Investment Endorses Solid Business Model and Future Growth Plans.

Business Editors & Health/Medical Writers

TAMPA, Fla.--(BW HealthWire)--July 25, 2001

Axolotl Corp., a leading provider of high-speed communication solutions and Web-based applications that connect physicians to the entire healthcare continuum, today closed $17.7 million in Series D financing. Led by Tudor Private Equity Fund, L.P., this financing also included Vanguard Atlantic, Ltd., Richland Ventures, L.P., and Gilat Satellite Networks Ltd. (Nasdaq:GILTF). As a result of strong interest from new investors Axolotl is maintaining a 120-day window to consider additional participation.

"The company will continue to deploy Web-based applications that automate physician practices, broadband communication solutions for high-speed Internet connectivity, and will further grow the AccentHealth Waiting Room Network," said Jerry Morrison, President and CEO of Axolotl Corp. "The company is on target to be EBITDA positive in this third quarter of 2001," continued Morrison.

"Axolotl Corp. is an exciting private investment for Tudor," said Rick Ganong, Partner, Tudor Venture Group. "They have a sustainable technology advantage, a strong customer base, a clear path to profitability and a seasoned management team to execute on the company's business plan. "We believe they have a very strong position in a large, growing market."

"Axolotl continues to be an important partner for Gilat Satellite Networks Ltd.," said Nick Supron, President and CEO, Spacenet Inc., Gilat's US subsidiary. "This round of funding will serve to strengthen our existing relationship and is expected to be used in part to increase the deployment of our VSAT-based communication solutions in the healthcare industry."

About Axolotl Corp.

Axolotl uses advanced communications technology to connect physicians to the entire healthcare continuum. The company provides physicians and their staffs with integrated clinical and administrative applications and patient education programs to streamline workflow, increase efficiency, and improve the quality of care. Thousands of healthcare professionals nationwide use the Elysium suite of Web-based applications to reduce costs and increase the time they have available for treating patients. Axolotl also provides high-speed, always-on Internet access to physician practices everywhere in the USA. Axolotl's AccentHealth Waiting Room Television Network, produced in conjunction with CNN, delivers award-winning patient education material to approximately 18 million visitors each month. For more information, visit http://www.axolotl.com.

Statements in this press release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items, and service offering growth, together with other statements that are not historical facts, are "forward-looking statements" as that term is defined under the Federal Securities Laws. Any forward-looking statements are estimates, reflecting the best judgment of the party making such statements based upon currently available information and involve a number of risks, uncertainties and other factors which could cause actual results to differ materially from those stated in such statements.