TRSL Presentation

December 5, 2005Joseph F. LovettLouisiana Fund IManaging Director

I. US Venture Capital

II. Health Care Venture Capital

III. Venture Capital Performance US Cal PERS PRIM – Massachusetts

IV. Louisiana Fund I Venture Capital in Louisiana Team Limited Partners Portfolio Companies Summary

I. US Venture Capital

1,750 Venture Capital & Private Equity Partnerships

Capitalization: $585 Billion

Average Total Investment 1 year: $20 billion

Distribution of Venture Capital Funds, YTD Q2 2005

Other72%

Health andLife

Sciences28%

$ in millions

Industry Q2 YTD Q2 2004 Q2 2005 YTD Q2 2005

Biotechnology $1,1012.8 $1,902.6 $1,122.2 $1,753.8

Medical Devices $509.7 $860.5 $425.7 $870.3

Healthcare Services

$304.8 $423.4 $219.5 $341.2

Total Health Industries VC Dollars

$1827.3 $3,186.5 $1,767.4 $2,965.2

Total VC Dollars

$5,983.2 $11,104.9 $5,774.9 $10,645.8

Percent of $3.0B Invested in Health Industries by Sector, YTD Q2 2005

Biotechnology 59% Healthcare Services,

Information and Sof tware

12%

Medical Devices and

Equipment 29%

Hot areas of Investment in Health Care(10 year PWC Money Tree Survey)

Individual disease management Cancer drug development Genomics Molecular Biology Innovative drug delivery methods Management of hospitals / clinics Obesity / weight loss treatments

III. Venture Capital PerformanceFund Type 1 Year 3 Year 5 Year 10 Year 20 Year

Early/Seed VC 2.1% -2.4% -10.5% 48.8% 20.2%

Balanced VC 11.7% 7.6% -2.6% 18.0% 13.7%

Later Stage VC 8.8% 3.2% -6.8% 14.1% 13.8%

All Venture 7.8% 3.0% -6.3% 25.8% 16.0%

Small Buyouts 51.3% 8.1% 2.4% 8.5% 25.7%

Med Buyouts 29.3% 6.4% -1.2% 10.6% 18.4%

Large Buyouts 21.4% 12.9% 3.0% 10.9% 14.7%

Mega Buyouts 26.9% 11.1% 3.6% 8.1% 11.0%

All Buyouts 26.9% 11.0% 2.9% 9.0% 13.8%

Mezzanine 9.7% 4.2% 3.2% 6.6% 9.1%

All Private Equity 20.4% 8.2% 0.1% 12.7% 13.8%

NASDAQ 0.4% 12.0% -12.3% 8.2% 11.3%

S&P 500 4.4% 6.4% -3.9% 8.1% 10.6%

Calpers: AIM Program

1990- 2005 250 VC Funds $7.2 Billion in Generated Profits

FUND YEAR COMMITED CAPITAL CASH OUT & REMANING VALUE INTERIM IRR

Alta Bio Pharma 1998 $50,000,000 $81,205,062 23.9%

Alta California Pts 1996 $100.000.000 $203,361,347 24.7%

Alta California Pts II 1998 $115,000,000 $86,087,657 (5.9)%

Alta 1996 $30,000,000 $37,247,339 5.8%

Alta V 1992 $35,000,000 $83,043,810 25.4%

Golder,Toma III 1994 $25,000,000 $514,411 24.9%

Golder, Toma V 1997 $40,000,000 $64,664,664 9.7%

Hicks, Muse II 1994 $100,000,000 $213,100,153 18.6%

Hicks, MUSE IIII 1997 $100,000,000 $61,449,392 (7.4%)

KKR European I 2001 $75,000,000 $93,677,468 20.9%

KKR Millennium 2002 $150,000,000 $88,346,041 24.9%

Perseus Seros 2001 $40,000,000 $37,342,194 13.7%

Sanderling IV 1997 $50,000,000 $81,998,441 14.6%

Thomas Lee III 1996 $100,000,000 $143,509,075 32.1%

Thomas LeeIII 1998 $100,000,000 $134,272,522 1.5%

Warburg Pincus 1990 $100,000,000 $236,300,980 14.9%

William Simon & Sons 2001 $25,000,000 $30,069,692 5.8%

State of Massachusetts

PRIM

$32.5 Billion

103 Venture Capital Funds

1986 – 1998

Returns:

Majority between 10-30%

Five Funds exceeded 50%

Biggest Winner: Menlo Ventures IV : 127%

Biggest Loser: Invexco ( a Houston oil & gas fund) (46%)

Average annual Return: 12.7% US

Thompson Venture Economics: 13.6% average

PRIMFUND IRR

Advent ESSF 17%

Advent GPE II 22%

Advent GPE III 7%

Advent International 5%

Advant International VI 32%

Fosrtman D&E III 5%

Fosrtman D&E IV 20%

Fosrtman D&E V 18%

Harbour Vest II 9%

Harbour Vest III 14%

Harbour Vest International 11%

KKR 1986 28%

KKR 1987 12%

KKR 1993 17%

KKR 1996 13%

NEA IV 10%

NEA VIII 34%

Tom Lee 55%

Tom Lee III 31%

Tom Lee IV (4)%

VENTURE CAPITAL INVESTMENTS: 1995-2004

U.S. LOUISIANA

No. Companies Investment $ No. Companies Investment $

1995-2004 37,320 $315,410,000,000 70 $616,000,000*

Source: Price Waterhouse Coopers Data

*One-half invested in one oil-related company, no companies in pharmaceuticals or biotechnology

US: Venture Capital Backed Companies

Tandem

Compaq

Intel

Genentech

Amazon. COM

Google

Netscape

Federal Express

Oracle

Sun Microsystems

Why is there a lack of venture capital in Louisiana?

Tradition Venture Capital in Louisiana historically focused on late-stage investments Similar to Boston in the 1980’s Leadership Needed:

- Harvard in Boston in 1988 with Medical Science Partners- LSU/LED/TRSL in Louisiana in 2004 with Louisiana Fund I

Sources in Louisiana for Early Stage Companies- Entrepreneurs

- Universities, Academic Medical Centers,

Research Centers and Companies

- $500-600M per year in Research &

Development Spending—50-60%

in Life Sciences

Louisiana Fund I: Overview

Louisiana needs a local early stage investment fund Create home-grown companies located in Louisiana Attract out-of-state companies to Louisiana Investment in existing companies Out-of-state investment funds will invest in Louisiana

companies LFI team experienced in working with early stage

technologies and early stage companies

Benefits to Investors and Louisiana Attractive financial return on investment for investors Louisiana Fund I catalyst for creating new industries,

companies and jobs across Louisiana Assist local economic development efforts Local companies based on locally developed technology

will remain in Louisiana Attract Louisiana natives back home Out-of-state investors will invest in Louisiana companies Favorable publicity for investors

Louisiana Fund I: Scientific & Business Advisory Board 12-15 Members

Assist the Fund with due diligence

Advice of key investment areas

Serve on Boards of Companies

Currently twelve members MBAs -Board Members of Public Companies PhDs -DMVs CEOs -DDSs

Scientific and Business Advisory Board

Current Members from

Eli Lilly University of Pennsylvania

GlaxoSmithKline Louisiana Tech University

Model Software LSU Health Science Center, Shreveport

Spirit-it Inc. Tulane University

Aperion, LLC Anthem Capital

Portfolio Companies

International Mezzo Systems—Nanotechnology & Micromachining Technology, LSU Incubator Company, LSU licensed technology

Patient Care Inc. – Health Insurance advocacy services, New Orleans

Esperance Biomedical, Pennington, LSU CAMD and LSU AG Center, Oncology Technology—lytic peptides for imaging and therapy for breast cancer metastases