424B3 1 g91318e424b3.htm PSYCHIATRIC SOLUTIONS, INC. PSYCHIATRIC SOLUTIONS, INC.
 

Pursuant to Rule 424(b)(3)
Registration No. 333-111679

SUPPLEMENT TO PROSPECTUS

DATED JANUARY 29, 2004

PSYCHIATRIC SOLUTIONS, INC.

4,932,932 Shares

Common Stock

     This prospectus supplement, dated October 19, 2004 (the “Supplement”), relates to the resale of 694,304 shares of common stock, $.01 par value per share (“Common Stock”), of Psychiatric Solutions, Inc. (the “Company”) that were obtained through the conversion of the Company’s series A convertible preferred stock and distributed by Oak Investment Partners X, Limited Partnership (“Oak X, LP”) and Oak X Affiliates Fund, Limited Partnership (“Oak X Affiliates, LP”) to its limited and general partners. As of the date hereof, all of the Company’s shares of series A convertible preferred stock have been converted into shares of Common Stock, and no shares of preferred stock are outstanding.

     The Prospectus, dated January 29, 2004 (the “Prospectus”), to which this Supplement is attached, relates to the resale by the holders thereof of up to an aggregate of 4,891,502 shares of Common Stock issuable upon the conversion of the Company’s series A convertible preferred stock and 41,430 shares of Common Stock that were held by certain of the selling stockholders. This Supplement together, with the Prospectus, is to be used by certain holders of Common Stock or by their transferees, pledgees, donees or their successors in connection with the offer and sale of Common Stock. You should read this Supplement in conjunction with the Prospectus. This Supplement is qualified by reference to the Prospectus except to the extent that the information in this Supplement supersedes the information contained in the Prospectus.

     The table appearing under the heading “Selling Stockholders” in the Prospectus is hereby amended and superseded in part by the information appearing in the table below.

                     
            Number of   Percentage of
            Shares of   Common
            Common   Stock
    Number of   Stock That   Beneficially
    Shares of   May Be   Owned
    Common Stock   Sold   Assuming
Name of Selling   Beneficially   Pursuant   Completion of
Stockholder
   Owned (1)
   Hereto
   This Offering
Oak Investment Partners X, Limited
             
Partnership (2)
                    
522 Fifth Avenue Fund LP
     714       714     *
Abbott Capital Private Equity Fund III,
    8,211       8,211     *
L.P., by Abbott Capital Management,
                    
LLC as Investment Manager
                    
Abbott Capital Private Equity Fund III, L.P., by Abbott Capital Management, LLC as Investment Manager — 04/01/03
    225       225     *

1

 

                     
            Number of   Percentage of
            Shares of   Common
            Common   Stock
    Number of   Stock That   Beneficially
    Shares of   May Be   Owned
    Common Stock   Sold   Assuming
Name of Selling   Beneficially   Pursuant   Completion of
Stockholder
   Owned (1)
   Hereto
   This Offering
Abbott Capital Private Equity Fund III, L.P., by Abbott Capital Management, LLC as Investment Manager — 01/01/04
    562       562     *
Alaska State Pension Investment Board by Abbott Capital
Management, LLC as Investment Manager
    6,158       6,158     *
Alaska State Pension Investment Board by Abbott Capital
Management, LLC as Investment Manager 04/01/03
    169       169     *
Alaska State Pension Investment Board by Abbott Capital
Management, LLC as Investment Manager 01/01/04
    422       422     *
Asset Management Private Equity, L.P.
    4,106       4,106     *
ATWILL CSFB Private Equity Partners, L.P.
    2,053       2,053     *
Auda Ventures L.P.
    4,106       4,106     *
BancBoston Investments Inc.
    2,504       2,504     *
BAS Oak X, LLC
    12,789       12,789     *
President and Trustees of Bates College
    1,232       1,232     *
BM-CSAM Private Equity Fund, L.P.
    2,053       2,053     *
Trustees of Boston University
    1,232       1,232     *
BSC Venture Fund LLC
    2,377       2,377     *
California Emerging Ventures II, LLC
    10,264       10,264     *
Cambria Investors, LLC
    410       410     *
Hamilton Lane–Carpenters Partnership Fund, L.P.
    2,053       2,053     *
CDB Web Tech International L.P.
    4,106       4,106     *
CGI Private Equity L.P. LLC
    8,211       8,211     *
The Trustees of the Cheyne Walk Trust
    2,053       2,053     *
Mellon Bank N.A., solely in its capacity as Custodian for The Children’s Hospital Foundation (as directed by The Children’s Hospital Foundation), and not it its individual capacity
    2,053       2,053     *
The Church Pension Fund
    6,158       6,158     *
Citicorp Citigroup Investments
    2,053       2,053     *
Citigroup Pension Plan
    2,053       2,053     *
Commonfund Capital Partners 1999, L.P. By: Fairfield Partners 1999, its General Partner
    103       103     *
Commonfund Capital Venture Partners VI, L.P.
    4,927       4,927     *
Constitution Liquidating Fund, L.P.
    7,113       7,113     *
JPMorganChase Bank as directed Trustee for the Corning
Incorporated Retirement Master Trust
    3,079       3,079     *
Credit Suisse Global Post-Venture Capital Fund
    616       616     *

2

 

                     
            Number of   Percentage of
            Shares of   Common
            Common   Stock
    Number of   Stock That   Beneficially
    Shares of   May Be   Owned
    Common Stock   Sold   Assuming
Name of Selling   Beneficially   Pursuant   Completion of
Stockholder
   Owned (1)
   Hereto
   This Offering
Credit Suisse Trust — Global Post-Venture Capital Portfolio
    616       616     *
Crossroads Constitution Limited Partnership
    72       72     *
CSFB Fund Investments VII Holdings, L.P.
    4,927       4,927     *
Cutler Oil & Gas Corporation
    1,642       1,642     *
Cymi, Ltd.
    2,053       2,053     *
Trustees of Dartmouth College
    2,874       2,874     *
Diageo Pension Trust Limited
    801       801     *
William S. Dietrich II Revocable Trust
    1,642       1,642     *
DLJ Venture Partners A, L.P.
    858       858     *
DLJ Venture Partners B, L.P.
    1,195       1,195     *
Alfred I. duPont Trust
    4,106       4,106     *
Emory University
    12,317       12,317     *
Endowment Venture Partners V, L.P. By: Fairfield Partners 2000, its General Partner
    16,422       16,422     *
JPMorganChase Bank, as Trustee for First Plaza Group Trust
    10,264       10,264     *
FLAG Venture Partners IV, L.P.
    18,475       18,475     *
HarbourVest Partners VI-Parallel Partnership Fund L.P.
    770       770     *
HarbourVest Partners VI-Partnership Fund, L.P.
    9,494       9,494     *
HarbourVest Partners VII — Venture Partnership Fund L.P.
    2,053       2,053     *
Employees’ Retirement System of the State of Hawaii, by Abbott Capital Management, LLC as Investment Manger
    3,284       3,284     *
Employees’ Retirement System of the State of Hawaii, by Abbott Capital Management, LLC as Investment Manger - 04/01/03
    90       90     *
Employees’ Retirement System of the State of Hawaii, by Abbott Capital Management, LLC as Investment Manger - 01/01/04
    225       225     *
Hewlett-Packard Company Group Trust
    4,106       4,106     *
HK Capital LLC
    820       820     *
Horsley Bridge Netherlands VII, L.P.
    6,158       6,158     *
Horsley Bridge VII, L.P.
    24,634       24,634     *
Houston Police Officers Pension System
    6,158       6,158     *
Houston Police Officers Pension System — 04/01/03
    169       169     *
Houston Police Officers Pension System — 01/01/04
    422       422     *
Northern Trust Company for the Illinois Municipal Retirement
Fund, by Abbott Capital Management, LLC as Investment Manager
    2,053       2,053     *

3

 

                     
            Number of   Percentage of
            Shares of   Common
            Common   Stock
    Number of   Stock That   Beneficially
    Shares of   May Be   Owned
    Common Stock   Sold   Assuming
Name of Selling   Beneficially   Pursuant   Completion of
Stockholder
   Owned (1)
   Hereto
   This Offering
Northern Trust Company for the Illinois Municipal Retirement
Fund, by Abbott Capital Management, LLC as Investment Manager
- 04/01/03
    56       56     *
Northern Trust Company as Trustees for the Illinois Municipal Retirement Fund, by Abbott Capital Management, LLC as Investment Manager — 01/01/04
    141       141     *
Illinois Municipal Retirement Fund Master Trust
    903       903     *
ING Pomona Private Equity Fund
    1,138       1,138     *
International Business Machines Corporation
    2,053       2,053     *
JDH Investors I, LLC
    2,463       2,463     *
J.P. Morgan Pooled Corporate Finance Institutional Investors LLC
    9,539       9,539     *
J.P. Morgan Pooled Corporate Finance Private Investors LLC
    2,721       2,721     *
Ewing Marion Kauffman Foundation
    2,874       2,874     *
John S. & James L. Knight Foundation
    4,106       4,106     *
Lord Baltimore Venture Capital Partners, LLC
    3,079       3,079     *
Board of Fire & Police Pension Commissioners of the City of Los Angeles, by Abbott Capital Management, LLC as Investment Manager
    2,053       2,053     *
Board of Fire & Police Pension Commissioners of the City of Los Angeles, by Abbott Capital Management, LLC as Investment Manager — 04/01/03
    56       56     *
Board of Pensions Commissioners of the City of Los Angeles, by Abbott Capital Management, LLC as Investment Manager - 01/01/04
    141       141     *
Los Angeles County Employees Retirement Association
    8,211       8,211     *
Mellon Trust of New England, N.A. as Trustee for the Lucent Techologies Inc. Master Pension Trust
    34,898       34,898     *
The Lawrenceville School
    1,232       1,232     *
Robert S. Mandra
    410       410     *
The Markaz/Hamilton Lane Technology Fund, L.P.
    820       820     *
Mathile Family Foundation
    1,232       1,232     *
MejeanView LLC
    410       410     *
MERS Investment Partnership, L.P.
    2,053       2,053     *
Miami Corporation
    4,927       4,927     *
Miami Partners, L.P.
    205       205     *
State Treasurer of the State of Michigan, Custodian of the Michigan Public School Employees’ Retirement System, State Employees’ Retirement System, and Michigan State Police Retirement System
    14,370       14,370     *
Regents of the University of Michigan
    4,106       4,106     *

4

 

                     
            Number of   Percentage of
            Shares of   Common
            Common   Stock
    Number of   Stock That   Beneficially
    Shares of   May Be   Owned
    Common Stock   Sold   Assuming
Name of Selling   Beneficially   Pursuant   Completion of
Stockholder
   Owned (1)
   Hereto
   This Offering
Boston Safe Deposit and Trust Company, solely in its capacity as Trustee for the Employees Retirement Income Plan Trust of Minnesota Mining and Manufacturing Company, (as directed by 3M Benefit Funds Investment), and not in its individual capacity
    10,264       10,264     *
The Mohawk River Fund II L.P.
    4,106       4,106     *
Montagu Newhall Global Partners, LP
    1,232       1,232     *
Eileen M. More
    410       410     *
Moussecapade, L.P.
    4,106       4,106     *
Moussescale
    2,053       2,053     *
The New Mexico State Investment Council Land Grant Permanent
Fund
    4,126       4,126     *
The New Mexico State Investment Council Severance Tax
Permanent Fund
    2,032       2,032     *
The Norinchukin Bank
    12,317       12,317     *
Northeastern University
    1,232       1,232     *
Northern Trust Corporation
    1,848       1,848     *
Northern Trust Private Equity Fund, L.P.
    1,232       1,232     *
Northwestern University
    8,211       8,211     *
University of Notre Dame du Lac
    2,053       2,053     *
Novell, Inc.
    4,106       4,106     *
Old Westbury Global Private Equity Fund, LLC
    4,106       4,106     *
Old Westbury Venture Capital Fund II, LLC
    3,781       3,781     *
Sal. Oppenheim Jr. & Cie. KGaA
    2,874       2,874     *
Oppenheim Private Equity Holding Blocker GmbH
    1,232       1,232     *
Pantheon International Participations PLC
    1,026       1,026     *
Pantheon USA Fund IV, L.P.
    4,660       4,660     *
Pantheon USA Fund V, L.P.
    1,232       1,232     *
PEI Capital Partner II, L.P.
    1,232       1,232     *
Lauer & Co. Agent for J.H. Pew Freedom Trust
    575       575     *
Lauer & Co. Agent for J.N. Pew, Jr. Trust
    287       287     *
Lauer & Co. Agent for Mabel Pew Myrin Trust
    370       370     *
Lauer & Co. Agent for The Medical Trust
    164       164     *
Lauer & Co. Agent for Pew Memorial Trust
    2,710       2,710     *
The Pfizer Foundation, Inc.
    2,053       2,053     *
Master Trust between Pfizer Inc. and The Northern Trust Company
    18,475       18,475     *

5

 

                     
            Number of   Percentage of
            Shares of   Common
            Common   Stock
    Number of   Stock That   Beneficially
    Shares of   May Be   Owned
    Common Stock   Sold   Assuming
Name of Selling   Beneficially   Pursuant   Completion of
Stockholder
   Owned (1)
   Hereto
   This Offering
Pomona College
    2,463       2,463     *
Pomona Partnership Holdings III, L.P.
    804       804     *
Pomona Partnership Holdings III Portfolio, L.P.
    4,216       4,216     *
Portfolio Advisors Private Equity Fund, L.P.
    2,053       2,053     *
Private Equity Investor PLC
    4,106       4,106     *
Private Equity Portfolio Fund III, LLC
    3,284       3,284     *
Private Equity Portfolio Technology Fund, LLC
    370       370     *
Ramsey Beirne Partners II, LLC
    410       410     *
Rensselaer Polytechnic Institute
    2,053       2,053     *
Riverwind Investment Pte Ltd
    12,317       12,317     *
The Trustees of the Ronald Family Trust B
    410       410     *
University of San Francisco
    820       820     *
Boston Safe Deposit and Trust Company, solely in its capacity as Trustee for the SBC Master Pension Trust as directed by Shott Capital Management, LLC and not in its individual capacity
    8,211       8,211     *
Shea-Paul Ventures, LLC
    4,106       4,106     *
The Board of Trustees of the Leland Stanford Junior University
    10,264       10,264     *
Stichting Pensioenfonds ABP
    10,264       10,264     *
Stichting Pensioenfonds voor de Gezondheid, Geestelijke en
Maatschappelijke Belangen
    10,264       10,264     *
SunAmerica Investments, Inc.
    3,818       3,818     *
SunAmerica Venture Fund 2000, L.P.
    287       287     *
SVB Strategic Investors Fund, LP
    4,106       4,106     *
TD Capital Private Equity Investors Partnership
    2,349       2,349     *
TD Parallel Private Equity Investors Ltd.
    1,756       1,756     *
Teacher Retirement System of Texas, a public pension fund and agency of the State of Texas
    36,950       36,950     *
The Travelers Indemnity Company
    1,369       1,369     *
The Travelers Insurance Company
    684       684     *
United Gulf Investments Limited c/o Brown Brothers Harriman
Trust Company (Cayman) Limited
    2,053       2,053     *
Utah Retirement Systems, by Abbott Capital Management, LLC as
Investment Manager
    2,053       2,053     *
Utah Retirement Systems, by Abbott Capital Management, LLC as Investment Manager — 04/01/03
    56       56     *

6

 

                     
            Number of   Percentage of
            Shares of   Common
            Common   Stock
    Number of   Stock That   Beneficially
    Shares of   May Be   Owned
    Common Stock   Sold   Assuming
Name of Selling   Beneficially   Pursuant   Completion of
Stockholder
   Owned (1)
   Hereto
   This Offering
Utah Retirement Systems, by Abbott Capital Management, LLC as Investment Manager — 01/01/04
    141       141     *
VCM Treuhand Beteiligungsverwaltung GmbH
    6,158       6,158     *
VenCap 6 Limited
    2,053       2,053     *
VenCap 9 Limited
    4,106       4,106     *
Wachovia Investors, Inc.
    2,053       2,053     *
Washington State Investment Board
    41,056       41,056     *
University of Washington
    2,463       2,463     *
Thomas Weisel Global Growth Partners (A), L.P.
    1,747       1,747     *
Thomas Weisel Global Growth Partners (B), L.P.
    5,438       5,438     *
The Wellcome Trust Limited, as Trustee of the Wellcome Trust
    6,158       6,158     *
Worldwide Oak X Ltd.
    820       820     *
Bandel L. Carano & Paula Michelle Carano, Trustees of the Bandel & Paula Carano Trust dated January 12, 2004 (3)
    12,634       955     *
Frederic W. Harman, Trustee of the Bandel & Paula Carano Children’s Trust dated August 18, 2004
    3,175       318     *
Edward F. Glassmeyer (4)
    11,937       878     *
EFG Trust II
    6,240       1,215     *
F. & S. Harman Family Trust Created By Agreement Dated 7/26/96 (5)
    13,054       996     *
The Harman Family Irrevocable Trust F/B/O Allison S. Harman
    918       92     *
The Harman Family Irrevocable Trust F/B/O Kirsten E. Harman
    918       92     *
The Harman Family Irrevocable Trust F/B/O Stephen F. Harman
    918       92     *
Ann H. Lamont (6)
    16,035       1,015     *
The Lamont Children’s 1998 Trust
    2,565       257     *
David B. Walrod (7)
    9,403       636     *
The David Black Family Partnership
    3,278       328     *
Gerald R. Gallagher
    1,807       919     *
Ann Gallagher 2000 GST Family Trust
    219       22     *
Gerald P. Gallagher 2000 GST Family Trust
    219       22     *
Megan Gallagher 2000 GST Family Trust
    219       22     *
Grace A. Ames
    1,310       130     *
Virginia K. Eddington
    656       66     *
Munir R. Javeri
    23       23     *
Ren B. Riley
    656       66     *

7

 

                     
            Number of   Percentage of
            Shares of   Common
            Common   Stock
    Number of   Stock That   Beneficially
    Shares of   May Be   Owned
    Common Stock   Sold   Assuming
Name of Selling   Beneficially   Pursuant   Completion of
Stockholder
   Owned (1)
   Hereto
   This Offering
Ifty A. Ahmed
    656       66     *
Julie A. Cavaliere
    656       66     *
Oak X Affiliates Fund, Limited Partnership (2)
                    
557 Group
    135       135     *
Sanjiv Ahuja
    135       135     *
David Baylor
    135       135     *
Birchwood Family Partnership
    135       135     *
Peter and Fay Bisson
    406       406     *
BNY Partners Fund II, LLC
    1,693       1,693     *
BNY Partners Fund II, LLC 10/1/03
    135       135     *
Ronald F. Borelli
    135       135     *
John Christopher Boyle and Amy Marie Boyle, Trustees of the Boyle Family Trust U/D/T dated September 3, 1998
    678       678     *
Lawrence V. Calcano
    339       339     *
Ricardo C. Calvillo
    135       135     *
James A. Cannavino
    339       339     *
Harry J. and Deborah A. Carr
    339       339     *
Stacey B. Case Living Trust
    339       339     *
Andrew Chase and Laura Chase ttees of the Chase 1991 Revocable Trust dtd 4/21/91
    339       339     *
Yoon Jung Choi
    135       135     *
Matthew L. Clark
    68       68     *
Charles J. Downey, III
    33       33     *
Charles Cotton
    135       135     *
Paul Lewis Davies III
    678       678     *
De Geus — John Family Trust u/a DTD Sept 8, 1999
    339       339     *
Steven J. Dietz
    135       135     *
Diner P-3 Level One Limited Partnership
    678       678     *
Dixon & Carol Doll Family Trust
    542       542     *
Frank M. Dunlevy
    406       406     *
Emerson Street Ventures
    271       271     *
Equity Information Corporation Profit Sharing Plan
    135       135     *
ESG INV 2001 LLC
    135       135     *

8

 

                     
            Number of   Percentage of
            Shares of   Common
            Common   Stock
    Number of   Stock That   Beneficially
    Shares of   May Be   Owned
    Common Stock   Sold   Assuming
Name of Selling   Beneficially   Pursuant   Completion of
Stockholder
   Owned (1)
   Hereto
   This Offering
FHP OXA, LLC a Nevada Limited Liability Company
    406       406     *
Jesse M. Fink
    678       678     *
Fortenbaugh — Lee Ventures, LLC
    339       339     *
The Glenrock Group LLC
    339       339     *
Richard B. Gold
    135       135     *
Robert Goodman
    339       339     *
Hatch Graham
    135       135     *
GRBF (Jersey) Limited
    271       271     *
Greenfield Family Limited Partnership
    678       678     *
Randall A. Hack
    135       135     *
Robert C. Hagerty & Deanna Hagerty as Co-Trustees of The Hagerty Living Trust dated May 14, 1999
    203       203     *
B. Kipling & Mary Ann Hagopian TTEES udt 3/25/88
    678       678     *
Michael J. Herling
    168       168     *
Basil Horangic
    135       135     *
Thomas S. Huseby
    135       135     *
Rupin and Pragna Javeri
    135       135     *
John H. Johnson
    203       203     *
Jones Living Trust
    406       406     *
Chiiming Kao
    135       135     *
John D. Karcher
    678       678     *
Robert W. and Laurie Kitts
    135       135     *
Michael R. Kourey and Michele M. Kourey as co-trustees of the Kourey Living Trust dated 1/3/97
    203       203     *
Lanza Family Trust UA 11/2/82
    101       101     *
Steven E. Lebow
    406       406     *
Lewis & Stephanie Holdings Limited Partnership
    203       203     *
Richard T. Liebhaber
    135       135     *
Stephen J. Luczo
    135       135     *
Jerome C. Marcus
    406       406     *
MBF Investments, LLC
    135       135     *
McEvoy-Worsencroft Family Trust U/A/D 7/29/94
    406       406     *
Mejean Corporation
    678       678     *

9

 

                     
            Number of   Percentage of
            Shares of   Common
            Common   Stock
    Number of   Stock That   Beneficially
    Shares of   May Be   Owned
    Common Stock   Sold   Assuming
Name of Selling   Beneficially   Pursuant   Completion of
Stockholder
   Owned (1)
   Hereto
   This Offering
Stanley J. Meresman and Sharon A. Meresman, Trustees of the MERESMAN FAMILY TRUST, U/D/T dated September 13, 1989, as amended
    678       678     *
J. Sanford Miller
    678       678     *
Matthew D. Miller
    203       203     *
Eileen M. More
    678       678     *
Rowland T. Moriarty
    135       135     *
William F. Murdy
    135       135     *
Murphy Family Trust dated 2/17/2000
    68       68     *
Arthur Richard Newton and Petra Michel, Trustees, Newton/Michel Family Trust, Dated July 16, 2002
    203       203     *
O’Brien Family Trust
    135       135     *
The Samuel J. and Sandra S. Parker Family Trust dated 9/10/82
    271       271     *
Caitlin Pincus
    406       406     *
The Price Trust utd 10/5/84
    406       406     *
Providence Investment Company Limited
    678       678     *
QIP II, LLC
    271       271     *
Kristin and Kurt Rauschenbach
    271       271     *
Douglas O. Reudink
    135       135     *
Dave Schaeffer
    135       135     *
David and Tracey Scheer
    135       135     *
Phyllis Schwartz
    33       33     *
Andrew B. Sessions and Rachelle K. Sessions, Trustees w/a/d 1/28/97
    203       203     *
Ajit Shah
    203       203     *
Nicholas H. Shelness & Maggi Allan
    135       135     *
Roderick W. Shepard
    406       406     *
The Simonian Living Trust
    33       33     *
David R.A. Steadman
    203       203     *
Thomas Stemberg Revocable Trust
    339       339     *
Steve and Diana Strandberg
    271       271     *
J. Leland Strange
    271       271     *
Parviz Tayebati
    678       678     *
Teton Ventures, LLC
    271       271     *
TW Trust
    135       135     *

10

 

                     
            Number of   Percentage of
            Shares of   Common
            Common   Stock
    Number of   Stock That   Beneficially
    Shares of   May Be   Owned
    Common Stock   Sold   Assuming
Name of Selling   Beneficially   Pursuant   Completion of
Stockholder
   Owned (1)
   Hereto
   This Offering
TWP Oak X Investors LLC
    271       271     *
Alex Vieux
    339       339     *
Andrew M. Vought
    406       406     *
John Wallace
    203       203     *
James Wei
    203       203     *
Alan L. Wurtzel Revocable Trust
    271       271     *
Yarmouth Trust
    678       678     *
Zisman Equities Group, LP
    678       678     *
Bandel L. Carano & Paula Michelle Carano, Trustees of the Bandel & Paula Carano Trust dated 01/12/04(3)
    12,634       109     *
Edward F. Glassmeyer(4)
    11,937       109     *
F. & S. Harman Family Trust Created By Agreement Dated 7/26/96(5)
    13,054       109     *
Ann H. Lamont(6)
    16,035       109     *
Dave Walrod(7)
    9,403       54     *

*   Indicates beneficial ownership of less than 1.0% of the Company’s outstanding common stock.

(1) Based on the Company’s review of filings with the Securities and Exchange Commission and other information available to the Company, the Company is not aware of any shares beneficially owned by the selling stockholders except as reflected in the table above.

(2) As of October 18, 2004, Oak X, LP and Oak X Affiliates, LP have distributed to their limited and general partners 663,532 and 30,772 shares, respectively, of the Company’s common stock obtained through the conversion of the Company’s series A convertible preferred stock. In turn, such general partners made distributions of the shares received to its respective members.

(3) Includes 9,634 shares directly owned by Bandel L. Carano & Paula Michelle Carano, Trustees of the Bandel & Paula Carano Trust dated January 12, 2004; 2,953 options held on behalf of Oak X, LP which are currently exercisable; and 47 options held on behalf of Oak X Affiliates, LP which are currently exercisable. Excludes 918 shares held by each of The Harman Family Irrevocable Trust F/B/O Allison S. Harman, The Harman Family Irrevocable Trust F/B/O Kirsten E. Harman and The Harman Family Irrevocable Trust F/B/O Stephen F. Harman, for which Mr. Carano is a trustee. Mr. Carano is a Managing Member of Oak Associates X, L.L.C. (“Oak Associates X”), the General Partner of Oak X, LP and a Managing Member of Oak X Affiliates, L.L.C., the General Partner of Oak X Affiliates, LP. Mr. Carano disclaims such beneficial ownership except with respect to shares directly owned by him.

(4) Includes 8,937 shares directly owned by Edward F. Glassmeyer; 2,953 options held on behalf of Oak X, LP which are currently exercisable; and 47 options held on behalf of Oak X Affiliates, LP which are currently exercisable. Mr. Glassmeyer is a Managing Member of Oak Associates X, the General Partner of Oak X, LP and a Managing Member of Oak X Affiliates, L.L.C., the General Partner of Oak X Affiliates, LP. Mr. Glassmeyer disclaims such beneficial ownership except with respect to shares directly owned by him.

(5) Includes 10,054 shares directly held by F & S Harman Family Trust Created by Agreement Dated 7/26/96; 2,953 options held on behalf of Oak X, LP which are currently exercisable; and 47 options held on behalf of Oak X Affiliates, LP which are currently exercisable. Excludes 3,175 shares held by The Bandel and Paula Carano

11

 

Children’s Trust dated August 18, 2004, for which Mr. Harman is a trustee. Mr. Harman is a Managing Member of Oak Associates X, the General Partner of Oak X, LP and a Managing Member of Oak X Affiliates, L.L.C., the General Partner of Oak X Affiliates, LP. Mr. Harman disclaims such beneficial ownership except with respect to shares held by F & S Harman Family Trust.

(6) Includes 13,035 shares held directly by Ann H. Lamont; 2,953 options held on behalf of Oak X, LP which are currently exercisable; and 47 options held on behalf of Oak X Affiliates, LP which are currently exercisable. Ms. Lamont is a Managing Member of Oak Associates X, the General Partner of Oak X, LP and a Managing Member of Oak X Affiliates, L.L.C., the General Partner of Oak X Affiliates, LP. Ms. Lamont disclaims such beneficial ownership except with respect to shares directly owned by her.

(7) Includes 6,403 shares directly held by David B. Walrod; 2,953 options held on behalf of Oak X, LP which are currently exercisable; and 47 options held on behalf of Oak X Affiliates, LP which are currently exercisable. Mr. Walrod is a Managing Member of Oak Associates X the General Partner of Oak X, LP and a Managing Member of Oak X Affiliates, L.L.C., the General Partner of Oak X Affiliates, LP. Mr. Walrod disclaims such beneficial ownership except with respect to shares directly owned by him.

Investing in our common stock involves a high degree of risk.

See “Risk Factors” beginning on page 33 of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2003.

_______________

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy of the prospectus or this prospectus supplement. Any representation to the contrary is a criminal offense.

The date of this Supplement is October 19, 2004

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