VNUS Medical Technologies receives non-compliance notice from Nasdaq

By Lisa Kerner

Erie, Pa., Jan. 13 - VNUS Medical Technologies, Inc. said it received a notification, dated Wednesday, from the Nasdaq Stock Market, Inc. that it is not in compliance with Nasdaq's audit committee requirements under Marketplace Rule 4350.

The non-compliance is due to the resignation of Kathleen D. LaPorte from VNUS' audit committee in May 2005, according to a company news release. The resignation resulted in only two independent directors presently remaining on the committee.

At the time of her resignation, LaPorte was a general partner of the Sprout Group, a life science venture capital firm. Due to the Sprout Group's policies regarding non-participation in audit committees of public companies, LaPorte was forced to resign. However, she continues to be a member of the board of directors and to serve on the compensation committee of the board of directors.

The Nasdaq notification stated that VNUS will have a cure period up to the earlier of its next annual shareholders' meeting or May 17 in order to regain compliance. The notification also requested that certain documents be submitted to Nasdaq for review.

If VNUS does not regain compliance, Nasdaq may delist its securities.

VNUS' nominating and governance committee is conducting a search for a qualified candidate to fill the vacancy and to regain Nasdaq compliance within the cure period.

VNUS, based in San Jose, Calif., is a provider of medical devices for the minimally invasive treatment of venous reflux disease.

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