Cyberkinetics Closes $5 Million in Initial Funding to Advance Development of Novel Brain-Computer Interface Technology.

Business Editors/Health/Medical Writers

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PROVIDENCE, R.I.--(BUSINESS WIRE)--Dec. 9, 2002

Cyberkinetics, Inc., a leader in the emerging field of neurotechnology, announced today an initial closing of $5 million in its Series A financing led by Oxford Bioscience Partners. The financing included an investment from Oxford of $4 million and $1 million from George Hatsopoulos, Founder and Chairman Emeritus of Thermo Electron Corporation. Cyberkinetics also completed a merger with Bionic Technologies, LLC, a company developing products for neural recording and stimulation located in Salt Lake City, Utah.

"Cyberkinetics is developing the first implantable brain-computer interface which can reliably interpret brain signals and perhaps read decisions made in the brain," said Mark Carthy, Chairman of Cyberkinetics and Partner at Oxford Bioscience Partners. "Medical devices incorporating the Cyberkinetics brain-computer interface have the potential to help patients overcome physical disabilities and to treat neurological disorders."

Cyberkinetics will use the proceeds from this new financing to initiate the development of medical devices based on the Company's proprietary brain-computer interface technology. This interface consists of an implantable array, computer hardware and software which processes and decodes neural signals. Using the brain-computer interface, neural signals can be detected and processed to drive computer-mediated movement using currently available technology. Proof-of-principle has been established in primate studies at Brown University and was published in the journal, Nature, M. Serruya, et.al., VOL 416, 14 March 2002, pages 141-142. In these studies, researchers demonstrated that neural activity in an animal's motor cortex (the intent of movement) can be used immediately to control a cursor on a computer screen. This may allow paralyzed or physically impaired patients to communicate without the use of physical interfaces such as keyboards or joysticks. Cyberkinetics' brain-computer interfaces may also be essential in detecting and providing treatments for neurological conditions such as stroke or epilepsy.

Cyberkinetics' Chief Scientific Officer and co-founder, John Donoghue, Ph.D., is Professor and Chairman of the Department of Neuroscience at Brown University. The scientific founding team also includes functional neurosurgeon, Gerhard Friehs, M.D., Associate Professor, Rhode Island Hospital & Brown Medical School, computational neuroscientist, Nicholas Hatsopoulos, Ph.D., Assistant Professor, University of Chicago, and neuroscientist, Mijail Serruya, Brown University. The founders are responsible for the scientific, medical and technological advances that led to the brain-computer interface.

Cyberkinetics' ability to rapidly develop and commercialize its brain-computer interface technology has been enhanced through a merger with Bionic Technologies, LLC located in Salt Lake City, Utah. Bionic, founded in 1995, is a leading manufacturer of implantable electrode arrays and associated equipment for neural recording and stimulation. Bionic generates revenues from sales of these products to neuroscientists for research use worldwide. Through this merger, Cyberkinetics gained key intellectual property and know-how relating to the manufacture of such devices, as well as an experienced engineering and manufacturing group for its implant technology. Brian Hatt, Ph.D., co-founder and President of Bionic, assumed the role of Vice President of Development in the combined company.

About Cyberkinetics, Inc.

Cyberkinetics (www.cyberkineticsinc.com) is a leading neurotechnology company, building direct brain-computer interfaces to treat individuals affected by paralysis or neurological disorders. Cyberkinetics' intellectual property features key technologies licensed from Brown University, the Massachusetts Institute of Technology, Emory University, and the University of Utah. Cyberkinetics is headquartered in Providence, Rhode Island, and maintains an engineering group in Salt Lake City, Utah.

About Oxford Bioscience

Oxford Bioscience Partners (www.oxbio.com) is a life science venture capital firm that provides equity financing and management assistance to start-up and early-stage, entrepreneurial-driven companies in the bioscience and healthcare industries. The General Partners of OBP currently manage venture funds with combined capital of more than $800 million.