Ability Secures Financing

November 2007

Venture Management, Inc. announced the expansion funding and recapitalization of Ability Prosthetics & Orthotics, Inc. by Bank of America, SEDA-Council of Governments and the Small Business Administration's 504 Loan Program. The funds secured were used to open the Exton, Pennsylvania patient care facility and to recapitalize corporate liabilities to an optimal structure. Ability was founded in 2004 by a team of certified prosthetists and orthotists to provide best-in-class quality care. Headquartered in Gettysburg, Pennsylvania, the company has offices in Hagerstown and Frederick Maryland as well as Gettysburg and Exton, Pennsylvania. The company is privately held.

As the exclusive investment banking advisor to Ability, the Venture Management team leveraged its transaction experience, banking relationships, and healthcare industry expertise to strengthen Ability's financing position.

Jason Gayl, Principal of Venture Management, Inc., commented, "The funding transaction is an excellent example of the initiatives that can be taken by Venture Management to analyze and develop appropriate capital structures to enable hyper-growth companies to meet their funding demands. Following our work with the Ability executive team to assess the growth goals, we determined we would need to develop a funding strategy to allow the company continued growth without compromising the team's control of operations." This transaction is the first by Ability to follow from its engagement of Venture Management, Inc., a privately held investment bank, to provide strategic and transaction advisory services.

Jeffrey M. Brandt, Founder, President and CEO of Ability, noted, "We wanted to continue the growth of the company with sound financial discipline. Venture Management was key in helping us understand what the banks and investors are seeking in a growth company. We were able to build a financing plan that will allow us to execute our innovative practice model now without compromising the opportunities and rewards of the future."

Judith Ahlstrom, Bank of America's Senior Vice President of Business Banking, added, "We look to invest in small business, but often the founder does not provide us with the cash flow, asset, and project based financial data to support the investment thesis. Venture Management did a great job putting the Ability Prosthetics & Orthotics story into terms that meet our needs."

The SBA' s 504 loan program is designed to help growing businesses make an investment in the land and buildings necessary to do business. SEDA-COG participated as the Certified Development Company focused on Exton, Pennsylvania. In addition to the 504 loan, Bank of America enabled Ability to retire start-up debt and to fund growth through a capital lease, an expanded line of credit and a restructured note.