A Medical Device Daily

"Naviscan PET Systems"(San Diego), specializing in high-resolution PET scanners, reported completing a $15 million Series C round of financing led by QuestMark Partners (Baltimore) and joined by Sanderling Ventures, Mayo Medical Ventures and Walker Ventures, all previous investors in Naviscan.

Michael Ward, a partner at QuestMark, will join Naviscan's board of directors.

The company said that proceeds from the financing will be used to further validate and commercialize its PEM Flex Solo II PET scanner, Naviscan's high resolution PET scanner. The company also will use the proceeds to continue development of other imaging and intervention technology, including imaging agents.

Naviscan says it is the first company to obtain FDA clearance of a high-resolution PET scanner designed to image small body parts. The device was developed to help physicians and researchers diagnose and locate cancer, guide interventions and advance new clinical therapies.

Paul Grayson, president/CEO and chairman of Naviscan, said, "The PEM Flex Solo II PET scanner provides unprecedented clarity and resolution, allowing physicians to image tumors less than 2 millimeters in size. It is the difference between seeing and not seeing the tumor, meaning early detection and the potential for more cures."

Current reimbursed indications for the PEM Flex Solo II include surgical planning, treatment evaluation and tumor staging in breast cancer patients.

"We wanted to support Naviscan's commercialization and product development efforts because we believe the product's superior resolution, sensitivity and specificity may improve patient care and lead to better outcomes," Ward said.

Naviscan PET Systems was founded in 1995.

QuestMark Partners is focused on expansion-stage growth companies including those in software, medical devices and the Internet.

"In other financing activity:"

"• InSight Health Services Holdings" (Lake Forest, California) reported that the offer to exchange shares of InSight's common stock for up to $194.5 million aggregate principal amount of 9 7/8% senior subordinated notes due 2011 of InSight's wholly owned subsidiary, InSight Health Services, has been extended and will expire at 11:59 p.m., EST, May 16, unless extended. As of May 1, 2007, about $109.1 million of notes had been tendered to the exchange agent.

InSight is a provider of diagnostic imaging services serving managed care entities, hospitals and other contractual customers in more than 30 states, including the following targeted regional markets: California, Arizona, New England, the Carolinas, Florida and the Mid-Atlantic states. InSight's network consisted of 109 fixed-site centers and 108 mobile facilities as of Dec. 31.

• Biosite (San Diego) reported that, in accordance with NASDAQ rules, 18 non-officer employees were granted with the following terms: each option has been classified as a non-qualified stock option, has an exercise price equal to the fair market value on the grant date, has a ten-year term, and vests in 16 equal quarterly installments over four years (on each quarterly anniversary of the applicable vesting commencement date).

Biosite is a bio-medical company commercializing proteomics discoveries to aid in the diagnosis of critical diseases and health conditions.