HEALTHCARE

Atherotech, Inc. (current news), based in Birmingham, Alabama, is a medical diagnostic company focused on developing a comprehensive line of cardiodiagnostic products based on the company’s proprietary VAP Test technology. The company’s first product, the VAP Cholesterol Test – the new standard of care for patients at risk for cardiovascular disease – is available through national and regional diagnostic laboratories.  At a price comparable to the routine lipid panel, the VAP test provides direct, detailed measurements of cholesterol, or lipid, subclasses that play important roles in the development of cardiovascular disease, the No.1 cause of death in the United States.

Aurora Imaging Technology (current news), based in North Andover, Massachusetts, develops and manufactures the Aurora 1.5T Dedicated Breast MRI System with Bilateral RODEO, the first and only FDA cleared MRI System designed specifically for breast imaging. The Aurora System images more anatomy with less distortion than conventional MRI Systems and allows for the use of advanced imaging techniques and interventional applications such as biopsies and therapy.  The Aurora System will enable major improvements in the detection, diagnosis and treatment of breast cancer by greatly increasing the ability to detect cancer early in its development and by providing radiologists and surgeons with better pre- and post-operative images.  By providing more accurate readings, the Aurora System reduces both the costs and patient anxieties associated with unnecessary biopsies and surgeries.  The Aurora System is in clinical use at a growing number of leading breast care centers.

Gordian, based in Nashville, Tennessee, provides results-oriented wellness and disease management solutions that effectively and measurably manage healthcare costs for employers, managed care organizations, hospitals and other providers of healthcare across the country. Gordian’s unique programs are designed to improve health status and reduce medical claims cost associated with poor lifestyle habits and manageable disease conditions. In August 2005, Gordian was acquired by Blue Cross Blue Shield of Tennessee.

IASIS Healthcare LLC, located in Franklin, Tennessee, is a leading owner and operator of medium-sized acute care hospitals in high-growth urban and suburban markets. IASIS owns and operates 15 general, acute-care hospitals, one behavioral hospital and three ambulatory surgery centers in Arizona, Florida, Nevada, Texas and Utah. Additionally, IASIS owns and operates a Medicaid managed health plan in Phoenix that serves over 108,000 members. In June 2004, an investor group led by Texas Pacific Group acquired IASIS in a transaction valued at approximately $1.4 billion.

LifeTrust America (“LTA”), headquartered in Nashville, Tennessee, is a senior living operating company, which owns, leases and operates 47 assisted living communities with 2,636 units which offer independent living apartments and assisted living accommodations, including specialized care for Alzheimer residents, throughout the Southeast. In addition, LTA manages 12 assisted living facilities for third- party owners. In November 2004, Five Star Quality Care, Inc. (AMEX: FVE) acquired LTA for $211 million.

Medical Care Consortium, Inc. ("MCCI") (current news), headquartered in Miami, Florida, is a leading provider of medical management services for managed care organizations.  MCCI was formed in 1998 through the acquisition of 15 medical clinics from Humana, Inc.  The Company has since grown to become a leading provider of medical management services for managed care organizations.  Currently, MCCI provided high quality primary care services on an outpatient basis through 23 facilities located in South Florida’s Miami-Dade, Broward and Palm Beach counties and nine affiliated physician groups to approximately 45,600 Medicare, Medicaid and commercial beneficiaries. 

Nursefinders (current news), based in Arlington, TX, is one of the largest healthcare staffing companies in the U.S. providing nursing, allied healthcare and physician placement services through its Nursefinders, Club Staffing and Linde Healthcare/Kendall & Davis brands. Through a network of over 100 offices, it serves hospitals, outpatient centers, assisted living and other health care facilities nationwide, with 25 of those offices also providing home health services.  Generally,  Nursefinders places more than 14,000 health care professionals in long and short-term health care assignments each year.

Pioneer Surgical Technology (current news), headquartered in Marquette, Michigan, is a leading innovator in the design and manufacture of spinal and orthopedic implants.  Founded in 1992, Pioneer has positioned itself as a true surgeon-driven spinal device company that promotes responsiveness through customer intimacy, surgeon-to-surgeon relationships, and a commitment to long-term innovation.  In 2005, Pioneer launched the following spinal products:  Quantum Spinal Rod, Pioneer Anterior Cervical Plate and its PEEK-Plus Vertebral Replacement Devices.  These current spinal devices are intended for use with spinal fusions and are predominately fixation devices designed to limit spinal movement while the bone is grown, or fused, together.  In addition to its more traditional spinal fixation devices, Pioneer is developing a next generation artificial spinal disc for the lower back, called NUBAC, which will enable higher levels of motion preservation than is currently available with spinal fusions and received the CE mark in 2005 for sales in Europe.

Psychiatric Solutions Inc. (“PSI”), based in Franklin, Tennessee, is a leading provider of behavioral health care services. PSI operates 34 freestanding psychiatric inpatient facilities with more than 4,000 beds. The company also manages freestanding psychiatric inpatient facilities and psychiatric inpatient units within general acute care hospitals owned by others. PSI became publicly listed (NASDAQ: PSYS) via a reverse merger transaction with PMR Corporation in August 2002.

Pharos’ original investment was in Medcast Networks, an Atlanta, GA-based company that developed a highly targeted, proprietary desktop news and information network to meet the unique intelligence needs of physicians and healthcare executives. Much like Bloomberg, the Medcast product has been created to provide the physician a “portfolio” of services, including specialty specific medical news, policy news, continuing medical education, reference resources as well as financial, travel and lifestyle information. Medcast Networks was acquired by Healtheon/WebMD in November 1999 (NASDAQ: HLTH).

Windsor Health Group (current news) is a managed healthcare company operating government sponsored health plans and providing specialty managed care services to both the insurance and healthcare provider communities. Headquartered in Nashville, Tennessee, the Company operates Windsor Health Plan of TN, a licensed HMO offering a variety of Medicare Advantage Health Plans and Medicare Prescription Drug Plans in Alabama, Arkansas, Mississippi and Tennessee, and participates in the TennCare managed Medicaid program in middle-Tennessee. Additionally, the Company operates Windsor HomeCare Network, providing coordinated homecare services to members of dozens of health insurance plans as well as members of its own health plans.

BUSINESS SERVICES

Clearwire Inc. (current news), based in Kirkland, Washington, is a provider of reliable, wireless, high-speed broadband Internet service to consumers and small businesses. Clearwire is utilizing next-generation, non-line-of-sight wireless technology (WiMAX) to connect customers to the Internet using radio spectrum, thus eliminating the confines of traditional cable or phone wiring. The company sends the signal from a transmitter to a specially developed receiver modem the size of a paperback book, which easily connects a user’s computer to the Internet. Customers simply plug the receiver into an electrical outlet and into their computer to gain high-speed access to the Internet. Clearwire completed a successful IPO (NASDAQ: CLWR) in March 2007 raising over $600 million.

Converge (current news) is the premier global supply chain partner for technology-driven companies. The company provides solutions that increase the bottom line and reduce the risk in electronic component distribution, reverse logistics management, and the secure disposition of e-waste.  Converge is known for its experience and market insight, as well as its up-front, proactive, and responsive approach to service and unwavering commitment to quality.  Services provided by Converge focus on three primary areas:  1) Rapid product procurement and demanding quality control of electronic component distribution in the global spot market; 2) Optimization of asset recovery value by providing comprehensive supply chain solutions that reduce costs, increase returns, and drive overall revenue; and 3) Secure, compliant end-of-life IT asset disposition services, including data erasure, disposal, recycling, and remarketing of systems and components.

Handango (current news) is the leading global provider of smartphone content. By leveraging 16,000 content partners across more than 500 distribution channels, the largest collection of partners in the mobile content industry, Handango seamlessly delivers the entire smartphone marketplace into millions of customers' hands, both on the web and on smart devices. The company's market-leading content delivery platform, Handango AMPP, is the platform of choice for numerous mobile industry leaders including Motorola, Nokia, Samsung, RIM, HP, Verizon Wireless, T-Mobile, Microsoft and AOL. By delivering intuitive and compelling consumer experiences, Handango has become the trusted source for millions of smartphone users around the world.  The Company is based out of Hurst, Texas and offers its products and services worldwide. 

iOnosphere (current news) is an international wholesale long distance carrier and provider of Voice over Internet Protocol (“VOIP”) telephone service.  Using the VoIP technology, the company has constructed a global telephony network of gateways and leased fiber capacity with points of presence around the world. Capitalizing on that network and expertise, iOnosphere also provides VoIP phone service to retail, resellers and small business users throughout the United States.

Netsize, a pioneer in Short Messaging Services (SMS) network deployment, is an international wireless message operator, seeking to become the world leader in mobile Internet message routing. Through its multi-channel service, Netsize can carry wireless messages over all communications channels (SMS, IP messaging, radio broadcasts, etc.). All Netsize solutions are scalable and designed to be adapted to a range of communications channels such as SMS, EMS (Enhanced Messaging Services) or MMS (Multimedia Messaging Services). In April, 2002 GemVentures, the venture financing arm of Gemplus, the world’s number one provider of solutions empowered by Smart Cards, purchased Pharos’ stake in the company.

Established in 1993, Reel FX, Inc. (current news) has emerged as the leading independent studio in the Computer Generated (“CG”) animation market targeting family-oriented content.  The company is currently producing proprietary and contracted CG-animated content through a variety of distribution channels, including direct-to-home video, television, advertising and feature films.  With its award-winning experience in the animation business, a diversified business model, state of the art facilities and a highly talented stable of animation expertise, Reel FX is positioned to become a leading family entertainment company.  On the commercial side, the company has produced content for international brands such as Gatorade, Pepsi, Hasbro and McDonalds, while customers on the entertainment side include Disney, Fox and Dreamworks.

SmartDM is a fast-growing database marketing services organization founded in 1995. SmartDM offers six main channels of database marketing services--agency solutions, analytics, direct mail, email, CRM and data management. These channels provide clients with a fully integrated services platform that allows companies and organizations to market more profitably to their customers and prospects. SmartDM’s clients include the American Red Cross, Bass Pro Shop, BenefitMall, Gaylord Entertainment, Fieldstone Mortgage, Harrah’s, numerous sports organizations from the NBA, NHL, Major League Baseball and the NCAA and others. In January, 2005, SmartDM was acquired by Acxiom Corporation, a Nasdaq-listed database management and services company.

StreamServe, Inc. (current news) is a provider of infrastructure and integration software that facilitates flexible business communications. StreamServe offers a comprehensive product suite that is designed to enable companies to manage, personalize and automate the flow of critical business information between its customers, suppliers and eMarketplaces in a wide range of formats and across many types of channels. Founded in 1995, StreamServe has experienced significant growth, expanding its office presence throughout the United States and Europe. The company has partnerships with major business application vendors and systems integrators, such as IBM, SAP, Oracle, Hewlett-Packard, IFS, Intentia, Baan and Scala. StreamServe’s solution is distributed and supported in 130 countries, with over 4,400 customers worldwide.

Telecommunication Systems, Inc. (TCS) is a leading provider of mission ciritical wireless data solutions to carriers, enterprise and government customers. TCS’ wireless data offerings include location-based Enhanced 9-1-1 services, and messaging and location service infrastructure for wireless operators, real-time market data and alerts to financial institutions, mobile asset management and mobile office solutions for enterprises, and encrypted satellite communications to government customers. TCS successfully completed an IPO in August, 2000 and currently trades on NASDAQ under the symbol TSYS.

Travel Holdings, Inc. (current news) is a leading travel services wholesaler that primarily supplies travel products to agents, online travel distribution companies and foreign tour operators. The company maintains an extensive array of negotiated rates with both hotel and air providers, allowing it to sell travel products at significant discounts. In addition to being one of the largest inbound tour operators in North America, Travel Holdings also provides private label websites for international tour operators and wholesalers, a b2b website for U.S. retail travel agents and a variety of consumer websites, including a market-leading consumer travel website LastMinuteTravel.com. This combination of a leading branded consumer travel website with a premier travel services wholesaler serving popular destination markets across the U.S. rivals the few online travel agencies that can compete across a multitude of business models.

Tritel, Inc., an AT&T Wireless affiliate, became a leading provider of personal communications services in the south-central US and was ultimately acquired by AT&T Wireless. Tritel was founded in 1996 to provide wireless communications services in the Southeast. Through government auctions and a strategic agreement with AT&T, Tritel secured a contiguous block of properties totaling 16 million POPS in the Southeast, encompassing all or part of Tennessee, Alabama, Mississippi, Louisiana, Georgia, Florida and Kentucky. The company completed a successful IPO in late 1999 and shortly thereafter merged with another AT&T Wireless affiliate, Telecorp PCS. The combined company was merged into AT&T Wireless in February 2002.

VeriCenter (current news) is the IT infrastructure and managed services company that provides a comprehensive range of secure, reliable, enterprise-level IT operations. These fully managed services are centrally delivered through automated systems to the company’s nationwide data centers or customer locations. VeriCenter's solutions help maintain and improve all levels of enterprise service and support while extending IT departments' in-house capabilities. VeriCenter customers rely on the company's expertise for hosting, security, monitoring, OS & database administration, and storage & tape backup requirements. Customers benefit from scalable, cost controlled, premium IT services and infrastructure all from one source.  In September 2007, VeriCenter was acquired by SunGard, a private-equity owned global leader in software and processing solutions for financial services, higher education, and the public sector.

APPLIED TECHNOLOGY

Alereon (current news) is a fabless semiconductor company developing Ultra Wideband wireless chipsets for personal area networking applications. The company is a founding member of the WiMedia UWB-industry group and the MBOA, a special interest group of more than 170 companies -- including seven of the world's 10 largest semiconductor vendors and all of the world's leading consumer electronics companies -- backing the leading IEEE standards proposal for UWB PAN technology. Alereon is targeting high-bandwidth, low-power, low-cost solutions to connect wirelessly consumer electronics, computer peripherals, and mobile devices. The company’s chipsets are designed to eliminate the need for cables around PCs and remove the tangle of wires in home entertainment systems. Alereon’s semiconductors will simplify wireless networking, making it effortless to connect portable electronics to one another, to PCs and to home entertainment systems.

Egenera (current news) is a global leader in delivering enterprise computing solutions that simplify datacenter operations and infrastructure. The Egenera BladeFrame system simplifies the datacenter with an innovative server architecture specifically designed to reduce complexity and enable IT to respond rapidly to business requirements. Market-leading enterprises around the world trust the Egenera BladeFrame system to run their most important business applications and achieve higher resource utilization, faster application time to market and lower total cost of ownership. Headquartered in Marlboro, Mass., Egenera has offices worldwide.

Time Domain (current news), an industry leader in the development of Ultra Wideband (UWB) technology, designs and develops precise Real Time Location Systems (RTLS), radar and communication devices powered by UWB technology. The company’s products can be used in a variety of applications, including real-time asset or personnel tracking, through-wall sensing and intrusion detection.  The company partners with leading system integrators, resellers and OEMs serving healthcare, retail, logistics, manufacturing and military markets to deliver its solutions to the end user. Additionally, Time Domain provides technology development services to government and commercial customers, including DARPA, Northrop Grumman, BBN Technologies, Nielson Media and other leading firms. In addition, the company owns the largest UWB intellectual property portfolio in the world with 190 patents issued, allowed or pending worldwide and has exclusive and non-exclusive rights to certain intellectual property embodied in an additional 55 issued or pending patents that were assigned to Alereon via license agreement.

OTHER

Back Yard Burgers (current news) operates and franchises quick service restaurants in 20 states, primarily in markets throughout the Southeast.  The company's goal is to offer the same high-quality ingredients and special care typified by outdoor grilling in one's own backyard.  The menu consists of made to order 100% Black Angus hamburgers and chicken sandwiches, fresh salads, chili, and other special entrees as well as hand-dipped milkshakes, fresh-made lemonade and fresh-baked cookies.  On November 6th, 2007, Pharos led the investor group which acquired 100% of Back Yard's publicly traded shares through a special purpose acquisition company, BBAC, LLC, in a going-private transaction.

Homeland Security Corporation (HSC) provides highly specialized security management and training services to government and commercial entities. Management estimates that over 70% of police academies in the United States currently train their recruits using HSC manuals and systems. Pharos provided bridge financing to help fund the company’s implementation of Lockheed Martin’s high profile assignment with the U.S. Transportation Security Administration to train the 30,000 new federally employed baggage screeners in the 439 municipal airports across the country.