CHICAGO, Sept. 25 /PRNewswire/ -- Silicon Biology presented its business
plan to the Illinois Venture conference on Thursday Sept. 24.
    Business Description:  Silicon Biology (SBI) was founded in 1995 by Eric
Anderholm to commercialize a software-based generic classification technology
(GCT) which resulted in a object-recognition 'engine' that can be used to
identify a variety of objects of interest.  This recognition engine consists
of over 1.1 million lines of software.  Based upon its proprietary generic
classification object recognition technology, Silicon Biology has established
a service company to capture data from standardized healthcare forms.
Healthcare claims are processed daily and paid for on a per claim basis.  The
revenue generated from this processing is recurring.
    Technology Description:  In independent testing the recognition engine has
shown to be the most accurate and fastest by the National Institute of
Standards Technology (NIST).  The character recognition engine generates a
character accuracy of over 99.8%.
    Proprietary Description:  Patents have been filed and are pending for two
of the proprietary technologies.  The first is the generic object recognition
based on our genetic algorithms.  The recognition engine is called FERMAT.
FERMAT is a Bayes classifier.  Bayes classifiers are known as a perfect
distribution, one in which all characters are known.  FERMAT either recognizes
a character or it doesn't.  There is no guessing and therefore no
substitutions of characters.  All other OCR engines are based on neural
networks.  Neural networks set confidence levels and guess on characters based
on a level of confidence, therefore causing higher level of substitutions.
The second proprietary technology is InReason.  InReason applies the concept
of similarity databases to enable item lookups.  This allows quality database
checks, fill in blanks, and improve the accuracy and data consistency of the
material.
    Market Size:  In the United States, the predominate forms for submitting
healthcare claims are the HCFA-1500 and the UB-92.  In 1997, there were 4.1
billion of these forms processed in the US of which 60% were transmitted
electronically and 40% (1.655 million) were transmitted on paper.  The market
for data capture of printed healthcare forms is over $660 million.  The market
for electronically submitted form is over $750 million.  With InReason
technology, the data is validated, verified and scrubbed for both EDI and
paper claims.
    Customers: Current customers are Blue Cross Blue Shield of Wisconsin,
Partner Health of Indiana, American Chiropractic Network, Midwest Security
Insurance, DCA of Minnesota.
    Funding: The company is looking to raise an additional $4-6 million.
    Personnel:
    President/CEO: Stephen Wexler; previously with Norstan, Inc., leading
provider of communications and IT consulting, most recently as EVP and GM, 18
yrs, prior experience Ernst and Young, CBS, INC.
    Vice-President Sales: Joseph Sexton; 14 yrs sales management. VP of Sales
Postalsoft/Firstlogic
    Vice-President of Engineering: Kaye Stacey; 17 yrs engineering management
with AT&T Global Information Solutions and Reliastar Financial
    Operations Management: Jodi Hansen; over 9 years healthcare experience
with Rehab Dynamics
    Controller: Toni Thulen; 16 yrs of financial and IS experience, Norstan
and Carlson Company
    BOARD: CEO plus 7 outside directors: Eric Anderholm (founder), Lawrence
Arnold (former managing general partner Wessels Arnold and Henderson), Thomas
Berman (Brinson Partners), Andrew Czajkowski (CEO Blue Cross Blue Shield
Minnesota)Douglas E. Johnson (Director of Entrepreneurial Studies-University
of Minnesota), John A. Rollwagon (former chairman and CEO of Cray Research),
Sam K. Smith (Former group president Texas Instrument).

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