Chrysalis Ventures Portfolio Company, HealthMedia, Acquired

LOUISVILLE, KY (October 27, 2008) Chrysalis Ventures, a leading source of equity capital for young growth companies in the Midwest and South, today announced that its portfolio company, HealthMedia, Inc., has been acquired by Johnson & Johnson (NYSE: JNJ). Ann Arbor, Michigan-based HealthMedia is a behavioral science technology company that builds and delivers tailored behavior change interventions in the areas of wellness, disease management, behavioral health, and medication adherence. Terms of the acquisition were not disclosed.

According to Chrysalis Ventures Managing Director Koleman Karleski, who also served on HealthMedia’s board of directors, “We are extremely pleased for HealthMedia and its talented management team led by President and CEO Ted Dacko. This acquisition will allow the company to continue to grow under Johnson & Johnson, bringing HealthMedia’s valuable products and services to a larger audience, and to expand its global reach. Chrysalis continues to focus on enabling technologies and services that benefit from the shift to consumer-directed health solutions, empowering consumers to better manage their own health, and HealthMedia is a phenomenal example of success in this important sector.”

Founded in 1998, HealthMedia is the world’s innovator in combining advanced technology and behavioral science to effectively emulate a health coach via the web. HealthMedia’s proven outcomes increase compliance, reduce medical utilization, and increase productivity — boosting profitability for health plans, employers, pharmaceutical companies, and behavioral health organizations.

Backed with 20+ years of behavioral science research, HealthMedia has developed a methodology and technology that effectively emulates a health coaching session, without the coach. The company’s one-of-a-kind programs possess the scalability of web content and deliver the efficacious outcomes a health coaching program receives.

Harris Williams & Co. acted as the exclusive advisor to HealthMedia, Inc.

HealthMedia, Inc. is the world’s innovator in combining advanced technology and behavioral science to effectively emulate a health coach via the web. HealthMedia applies its revolutionary Fusion™ technology to address the five most problematic pain points facing the health industry today: participation, scalability, cost, efficacy, and return on investment. HealthMedia’s suite of interventions provides automated web-based coaching for wellness, disease management, behavioral health, and medication adherence with proven outcomes, increased compliance, reduced medical utilization, and increased productivity – boosting profitability for health plans, employers, pharmaceutical companies, and behavioral health organizations. Clients include Community First Health Plans, Daiichi Sankyo, Fresh & Easy Neighborhood Market, Inc., Johnson & Johnson, Kaiser Permanente, GlaxoSmithKline and nine Blue Cross Blue Shield organizations across the United States. HealthMedia partners include APS Healthcare, Corphealth, Health Dialog, RedBrick Health Corporation, SHPS, StayWell, and Wellsource. For more information, visit www.healthmedia.com.

About Chrysalis Ventures
Founded in 1993, Chrysalis Ventures is the premier venture capital firm in Mid-America, managing one of the region’s largest funds for early-stage and growth investments. Chrysalis invests primarily in early-stage and expansion-stage companies in healthcare services and technology, media and communications, and emerging trends and technologies. Based in Louisville, Kentucky, Chrysalis has over $385 million under management and has made investments in over 55 companies. For more information, please visit www.chrysalisventures.com.