Fremont, CA — October 11, 2005

Velos, Inc., a Silicon Valley healthcare software innovator, today announced plans to release the next version of its collaborative research system infrastructure, or “grid”, technology in Q1 of 2006. This pioneering Velos eResearch technology was first put into production by six top Comprehensive Cancer Centers in 2004 (see: www.veloseresearch.com/eres/jsp/news_pr9.html) and automates the clinical trials process from source systems, such as labs, adverse events and medical record systems, through data submission to clinical trial sponsors.

In contrast to conventional Electronic Data Capture or “EDC”, the technology enables investigators and sponsors to propagate clinical trials to research sites such that sites can execute the research using systems already in production at the sites. This creates a host of opportunities for reduced data entry, electronic source document verification, and increased protocol and regulatory compliance. The result is more efficient, reliable, and robust clinical trial execution.

The coming release enables the community of Velos investigators and their sponsors to securely publish case report forms, structured protocols, and study execution workflow to current and new Velos community members. With the release, all Velos customers – which now include 14 U.S. medical centers with top 25 rankings (source: U.S. News and World Report Best Hospitals 2005) – will have access to the grid and can originate secure clinical trials, enroll current and new Velos sites, or participate in trials led by other sites or sponsors.

In addition to facilitating efficient clinical trial execution, researchers can use the grid to distribute otherwise burdensome work loads. Some research organizations have dozens, hundreds, or even thousands of clinical trials to track, execute, and report on. For any one organization to convert so many clinical trials from paper to an interoperable, electronic medium is time-consuming. Using the Velos grid technology, sites and sponsors can distribute the workload, share best practices, and rapidly organize into secure, highly productive, systems-enabled research networks.

The Velos technology is intended to complement exciting government and industry initiatives designed to foster more efficient, collaborative research. A great example of such initiatives is the National Cancer Institutes’ cancer Biomedical Informatics Grid, or caBIGTM. Velos eResearch is also compliant with commonly-used data exchange and terminology standards.

About Velos
Velos, Inc., http://www.velos.com/.,is a leading provider of next-generation healthcare software. Velos develops, markets, and supports an integrated suite of clinical, administrative, and financial products. Velos eResearch , the company’s flagship clinical trial management product line, has been chosen by leading medical centers in academic medicine and research. Velos’ specialty medical product line supports the information needs of healthcare providers in cardiology, cardiovascular surgery, dialysis, and transplantation. Velos is privately held with headquarters in Fremont.

This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements.

Additional information regarding Velos may be obtained by contacting Madalynne Chapman (510-580-2661 / mchapman@velos.com) or visit http://www.velos.com/.