Project Walnut

• Liver Disease Platform
• Plasma Fractions Platform
• Project Buckeye
• Project Butterfield
• Project Eclipse
• Project Flux
• Project Globe
• Project Gold Rush
• Project Hunter
• Project Lighthouse
• Project Mango
• Project Merit
• Project Seasons
• Project Spartan
• Project Synergy
• Project Texas
• Project Upstream
• Project Walnut

Project Walnut is a practice management network in Southern California, consisting of a large multi-specialty IPA. The Company's private equity sponsors led a $50 million financing in 2000, based primarily on the potential of commercializing a promising hand-held technology. Upon failure of the technology, the Company was left with disenchanted physicians and poor management. Healthios re-designed the Company's strategy based upon a services model. We recommended an experienced, senior director with strong healthcare experience and fierce cost management discipline. Healthios than identified a series of CEO candidates with relevant operating experience, one of whom was selected. The Company installed the new team in August 2001, resulting in stabilized operations and an increase in cash flow. The Company is now in the process of renewing its HMO/PPO contracts.