United States
                       Securities and Exchange Commission
                             WASHINGTON, D.C. 20549


                                  Schedule 13G
                               (Amendment No. __)*

                    UNDER THE SECURITIES EXCHANGE ACT OF 1934


                              XCYTE THERAPIES, INC.
             ------------------------------------------------------
                                (Name of Issuer)

                                  Common Stock
             ------------------------------------------------------
                         (Title of Class of Securities)

                                    98389F309
             ------------------------------------------------------
                                 (CUSIP Number)


                                December 31, 2004
             ------------------------------------------------------
             (Date of Event That Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:

         |_|      Rule 13d-1(b)

         |X|      Rule 13d-1(c)

         |_|      Rule 13d-1(d)

* The remainder of this cover page shall be filled out for a reporting  person's
initial filing on this form with respect to the subject class of securities, and
for any  subsequent  amendment  containing  information  which  would  alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the  Securities  Exchange  Act of
1934 ("Act") or otherwise  subject to the liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).







                                                  
CUSIP No.  98389F309                                                                     Page 2 of 14 Pages
-------------------------------------------------------------------------------------------------------------------
  (1)    Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons

         Alta Partners
-------------------------------------------------------------------------------------------------------------------
  (2)    Check The Appropriate Box If A Member Of A Group                                  (a)
                                                                                           (b)   X
-------------------------------------------------------------------------------------------------------------------
  (3)    SEC Use Only

-------------------------------------------------------------------------------------------------------------------
  (4)    Citizenship or Place of Organization

         California
-------------------------------------------------------------------------------------------------------------------
                     Please see Attachment A and Footnote 1
Number Of Shares                                     (5)      Sole Voting Power         -0-
Beneficially Owned
By Each Reporting                                    --------------------------------------------------------------
Person With                                          (6)      Shared Voting Power       1,567,929
                                                              Please see Attachment A and Footnote 1
                                                     --------------------------------------------------------------
                                                     (7)      Sole Dispositive Power    -0-

                                                     --------------------------------------------------------------
                                                     (8)      Shared Dispositive Power  1,567,929
                                                              Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
  (9)    Aggregate Amount Beneficially Owned By Each Reporting Person

         1,567,929         Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
  (10)   Check If The Aggregate Amount In Row (11) Excludes Certain Shares*


-------------------------------------------------------------------------------------------------------------------
  (11)   Percent Of Class Represented By Amount In Row (11)

         7.27%             Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
  (12)   Type Of Reporting Person

                  IA
-------------------------------------------------------------------------------------------------------------------

                                        *SEE INSTRUCTION BEFORE FILLING OUT!

Footnote 1:  Includes 1,117,439 shares of Common Stock and 97,766 shares of Convertible Exchangeable Preferred Stock
             (convertible into 416,023 shares of Common Stock) beneficially owned by Alta California Partners, L.P.,
             and 24,961  shares of Common  Stock,  and 2,234  shares of  Convertible  Exchangeable  Preferred  Stock
             (convertible into 9,506 shares of Common Stock) beneficially owned by Alta Embarcadero  Partners,  LLC.
             Please see Attachment A.







                                                  
CUSIP No. 98389F309                                                                     Page 3 of 14 Pages
-------------------------------------------------------------------------------------------------------------------
  (1)    Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons

         Alta California Partners, L. P.
-------------------------------------------------------------------------------------------------------------------
  (2)    Check The Appropriate Box If A Member Of A Group                                  (a)
                                                                                           (b)   X
-------------------------------------------------------------------------------------------------------------------
  (3)    SEC Use Only

-------------------------------------------------------------------------------------------------------------------
  (4)    Citizenship or Place of Organization

         Delaware
-------------------------------------------------------------------------------------------------------------------
                     Please see Attachment A and Footnote 1
Number Of Shares                                     (5)      Sole Voting Power         -0-
Beneficially Owned
By Each Reporting                                    --------------------------------------------------------------
Person With                                          (6)      Shared Voting Power       1,567,929
                                                              Please see Attachment A and Footnote 1
                                                     --------------------------------------------------------------
                                                     (7)      Sole Dispositive Power    -0-

                                                     --------------------------------------------------------------
                                                     (8)      Shared Dispositive Power  1,567,929
                                                              Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
  (9)    Aggregate Amount Beneficially Owned By Each Reporting Person

         1,567,929         Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
  (10)   Check If The Aggregate Amount In Row (11) Excludes Certain Shares*


-------------------------------------------------------------------------------------------------------------------
  (11)   Percent Of Class Represented By Amount In Row (11)

         7.27%             Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
  (12)   Type Of Reporting Person

                  PN
-------------------------------------------------------------------------------------------------------------------

Footnote 1:  Includes 1,117,439 shares of Common Stock and 97,766 shares of Convertible Exchangeable Preferred Stock
             (convertible into 416,023 shares of Common Stock) beneficially owned by Alta California Partners, L.P.,
             and 24,961  shares of Common  Stock,  and 2,234  shares of  Convertible  Exchangeable  Preferred  Stock
             (convertible into 9,506 shares of Common Stock) beneficially owned by Alta Embarcadero  Partners,  LLC.
             Please see Attachment A.









                                                  
CUSIP No. 98389F309                                                                      Page 4 of 14 Pages
-------------------------------------------------------------------------------------------------------------------
  (1)    Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons

         Alta California Management Partners, L.P.
----------------------------------------------------------------------------------------------------------
  (2)    Check The Appropriate Box If A Member Of A Group                                  (a)
                                                                                           (b)   X
-------------------------------------------------------------------------------------------------------------------
  (3)    SEC Use Only

-------------------------------------------------------------------------------------------------------------------
  (4)    Citizenship or Place of Organization

         Delaware
-------------------------------------------------------------------------------------------------------------------
                     Please see Attachment A and Footnote 1
Number Of Shares                                     (5)      Sole Voting Power -0-
Beneficially Owned
By Each Reporting                                    --------------------------------------------------------------
Person With                                          (6)      Shared Voting Power       1,567,929
                                                              Please see Attachment A and Footnote 1
                                                     --------------------------------------------------------------
                                                     (7)      Sole Dispositive Power    -0-

                                                     --------------------------------------------------------------
                                                     (8)     Shared Dispositive Power  1,567,929
                                                              Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
  (9)    Aggregate Amount Beneficially Owned By Each Reporting Person

         1,567,929         Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
  (10)   Check If The Aggregate Amount In Row (11) Excludes Certain Shares*


-------------------------------------------------------------------------------------------------------------------
  (11)   Percent Of Class Represented By Amount In Row (11)

         7.27%             Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
 (12)    Type Of Reporting Person

                  PN
-------------------------------------------------------------------------------------------------------------------

Footnote 1:  Includes 1,117,439 shares of Common Stock and 97,766 shares of Convertible Exchangeable Preferred Stock
             (convertible into 416,023 shares of Common Stock) beneficially owned by Alta California Partners, L.P.,
             and 24,961  shares of Common  Stock,  and 2,234  shares of  Convertible  Exchangeable  Preferred  Stock
             (convertible into 9,506 shares of Common Stock) beneficially owned by Alta Embarcadero  Partners,  LLC.
             Please see Attachment A.









                                                  
CUSIP No. 98389F309                                                                      Page 5 of 14 Pages
-------------------------------------------------------------------------------------------------------------------
  (1)    Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons

         Alta Embarcadero Partners, LLC
-------------------------------------------------------------------------------------------------------------------
  (2)    Check The Appropriate Box If A Member Of A Group                                  (a)
                                                                                           (b)   X
-------------------------------------------------------------------------------------------------------------------
  (3)    SEC Use Only

-------------------------------------------------------------------------------------------------------------------
  (4)    Citizenship or Place of Organization

         California
-------------------------------------------------------------------------------------------------------------------
                     Please see Attachment A and Footnote 1
Number Of Shares                                     (5)      Sole Voting Power         -0-
Beneficially Owned
By Each Reporting                                    --------------------------------------------------------------
Person With                                          (6)      Shared Voting Power       1,567,929
                                                              Please see Attachment A and Footnote 1
                                                     --------------------------------------------------------------
                                                     (7)      Sole Dispositive Power    -0-

                                                     --------------------------------------------------------------
                                                     (8)      Shared Dispositive Power   1,567,929
                                                              Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
  (9)    Aggregate Amount Beneficially Owned By Each Reporting Person

         1,567,929         Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
  (10)   Check If The Aggregate Amount In Row (11) Excludes Certain Shares*

-------------------------------------------------------------------------------------------------------------------
  (11)   Percent Of Class Represented By Amount In Row (11)

         7.27%             Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
  (12)   Type Of Reporting Person

                  CO
-------------------------------------------------------------------------------------------------------------------

Footnote 1:   Includes 1,117,439 shares of Common Stock and 97,766 shares of Convertible Exchangeable Preferred Stock
             (convertible into 416,023 shares of Common Stock) beneficially owned by Alta California Partners, L.P.,
             and 24,961  shares of Common  Stock,  and 2,234  shares of  Convertible  Exchangeable  Preferred  Stock
             (convertible into 9,506 shares of Common Stock) beneficially owned by Alta Embarcadero  Partners,  LLC.
             Please see Attachment A.





                                                  
CUSIP No. 98389F309                                                                      Page 6 of 14 Pages
-------------------------------------------------------------------------------------------------------------------
  (1)    Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons

         Jean Deleage
-------------------------------------------------------------------------------------------------------------------
  (2)    Check The Appropriate Box If A Member Of A Group                                  (a)
                                                                                           (b)   X
-------------------------------------------------------------------------------------------------------------------
  (3)    SEC Use Only

-------------------------------------------------------------------------------------------------------------------
  (4)    Citizenship or Place of Organization

         United States
-------------------------------------------------------------------------------------------------------------------
                     Please see Attachment A and Footnote 1
Number Of Shares                                     (5)      Sole Voting Power         5,454
Beneficially Owned
By Each Reporting                                    --------------------------------------------------------------
Person With                                          (6)      Shared Voting Power       1,567,929
                                                              Please see Attachment A and Footnote 2
                                                     --------------------------------------------------------------
                                                     (7)      Sole Dispositive Power    5,454

                                                     --------------------------------------------------------------
                                                     (8)      Shared Dispositive Power  1,567,929
                                                              Please see Attachment A and Footnote 2
-------------------------------------------------------------------------------------------------------------------
  (9)    Aggregate Amount Beneficially Owned By Each Reporting Person

         1,573,383         Please see Attachment A and Footnote 2
-------------------------------------------------------------------------------------------------------------------
  (10)   Check If The Aggregate Amount In Row (11) Excludes Certain Shares*

-------------------------------------------------------------------------------------------------------------------
  (11)   Percent Of Class Represented By Amount In Row (11)

         7.29%             Please see Attachment A and Footnote 2
-------------------------------------------------------------------------------------------------------------------
  (12)   Type Of Reporting Person

                  IN
-------------------------------------------------------------------------------------------------------------------

                                        *SEE INSTRUCTION BEFORE FILLING OUT!

Footnote 2:  Includes 1,117,439 shares of Common Stock and 97,766 shares of Convertible Exchangeable Preferred Stock
             (convertible into 416,023 shares of Common Stock) beneficially owned by Alta California Partners, L.P.,
             and 24,961  shares of Common  Stock,  and 2,234  shares of  Convertible  Exchangeable  Preferred  Stock
             (convertible into 9,506 shares of Common Stock) beneficially owned by Alta Embarcadero  Partners,  LLC.
             Mr. Deleage holds Stock Options for 5,454 shares of Common Stock. Please see Attachment A.







                                                  
CUSIP No. 98389F309                                                                      Page 7 of 14 Pages
-------------------------------------------------------------------------------------------------------------------
  (1)    Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons

         Garrett Gruener
-------------------------------------------------------------------------------------------------------------------
  (2)    Check The Appropriate Box If A Member Of A Group                                  (a)
                                                                                           (b)   X
-------------------------------------------------------------------------------------------------------------------
  (3)    SEC Use Only

-------------------------------------------------------------------------------------------------------------------
  (4)    Citizenship or Place of Organization

         United States
-------------------------------------------------------------------------------------------------------------------
                     Please see Attachment A and Footnote 1
Number Of Shares                                     (5)      Sole Voting Power -0-
Beneficially Owned
By Each Reporting                                    --------------------------------------------------------------
Person With                                          (6)      Shared Voting Power       1,567,929
                                                              Please see Attachment A and Footnote 1
                                                     --------------------------------------------------------------
                                                     (7)      Sole Dispositive Power    -0-

                                                     --------------------------------------------------------------
                                                     (8)      Shared Dispositive Power  1,567,929
                                                              Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
  (9)    Aggregate Amount Beneficially Owned By Each Reporting Person

         1,567,929         Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
  (10)   Check If The Aggregate Amount In Row (11) Excludes Certain Shares*

-------------------------------------------------------------------------------------------------------------------
  (11)   Percent Of Class Represented By Amount In Row (11)

         7.27%             Please see Attachment A and Footnote 1
-------------------------------------------------------------------------------------------------------------------
  (12)   Type Of Reporting Person

                  IN
-------------------------------------------------------------------------------------------------------------------

                                        *SEE INSTRUCTION BEFORE FILLING OUT!

Footnote 1   Includes 1,117,439 shares of Common Stock and 97,766 shares of Convertible Exchangeable Preferred Stock
             (convertible into 416,023 shares of Common Stock) beneficially owned by Alta California Partners, L.P.,
             and 24,961  shares of Common  Stock,  and 2,234  shares of  Convertible  Exchangeable  Preferred  Stock
             (convertible into 9,506 shares of Common Stock) beneficially owned by Alta Embarcadero  Partners,  LLC.
             Please see Attachment A.






                                                  
CUSIP No. 98389F309                                                                      Page 8 of 14 Pages
-------------------------------------------------------------------------------------------------------------------
  (1)    Names of Reporting Persons. SS or I.R.S. Identification Nos. of Above Persons

         Guy Nohra
-------------------------------------------------------------------------------------------------------------------
  (2)    Check The Appropriate Box If A Member Of A Group                                  (a)
                                                                                           (b)   X
-------------------------------------------------------------------------------------------------------------------
  (3)    SEC Use Only

-------------------------------------------------------------------------------------------------------------------
  (4)    Citizenship or Place of Organization

         United States
-------------------------------------------------------------------------------------------------------------------
                     Please see Attachment A and Footnote 3
Number Of Shares                                     (5)      Sole Voting Power         -0-
Beneficially Owned
By Each Reporting                                    --------------------------------------------------------------
Person With                                          (6)      Shared Voting Power       1,533,462
                                                              Please see Attachment A and Footnote 3
                                                     --------------------------------------------------------------
                                                     (7)      Sole Dispositive Power    -0-

                                                     --------------------------------------------------------------
                                                     (8)      Shared Dispositive Power  1,533,462
                                                              Please see Attachment A and Footnote 3
-------------------------------------------------------------------------------------------------------------------
  (9)    Aggregate Amount Beneficially Owned By Each Reporting Person

         1,533,462                  Please see Attachment A and Footnote 3
-------------------------------------------------------------------------------------------------------------------
  (10)   Check If The Aggregate Amount In Row (11) Excludes Certain Shares*


-------------------------------------------------------------------------------------------------------------------
  (11)   Percent Of Class Represented By Amount In Row (11)

         7.11%             Please see Attachment A and Footnote 3
-------------------------------------------------------------------------------------------------------------------
  (12)   Type Of Reporting Person

                  IN
-------------------------------------------------------------------------------------------------------------------

                                        *SEE INSTRUCTION BEFORE FILLING OUT!

Footnote 3:   Includes 1,117,439 shares of Common Stock and 97,766 shares of Convertible Exchangeable Preferred Stock
             (convertible into 416,023 shares of Common Stock) beneficially owned by Alta California Partners,  L.P.
             Please see Attachment A.





Item 1.

(a) Name of Issuer: Xcyte Therapies, Inc. ("Issuer")

(b) Address of Issuer's Principal Executive Offices:

                  1124 Columbia Street, Suite 130
                  Seattle, WA  98104


Item 2.

(a) Name of Person Filing:

         Alta Partners ("AP")
         Alta California Partners, L.P. ("ACP")
         Alta California Management Partners, L.P. ("ACMP")
         Alta Embarcadero Partners, LLC ("AEP")
         Jean Deleage ("JD")
         Garrett Gruener ("GG")
         Guy Nohra ("GN")

 (b) Address of Principal Business Office:

         One Embarcadero Center, Suite 4050
         San Francisco, CA  94111

 (c) Citizenship/Place of Organization:


         Entities:         AP               California
                           ACP              Delaware
                           ACMP             Delaware
                           AEP              California


         Individuals:      JD               United States
                           GG               United States
                           GN               United States


(d) Title of Class of Securities: Common Stock

(e) CUSIP Number: 98389F309



Item 3.  Not applicable.


Item 4         Ownership.
             Please see Attachment A



------- ------------------ ----------- ----------- ------------ -----------
                               AP         ACP         ACMP         AEP
------- ------------------ ----------- ----------- ------------ -----------
                                                 
(a)     Beneficial         1,567,929   1,567,929    1,567,929   1,567,929
        Ownership
------- ------------------ ----------- ----------- ------------ -----------
(b)     Percentage of        7.27%       7.27%        7.27%       7.27%
        Class
------- ------------------ ----------- ----------- ------------ -----------
(c)     Sole Voting Power     -0-         -0-          -0-         -0-
------- ------------------ ----------- ----------- ------------ -----------
        Shared Voting      1,567,929   1,567,929    1,567,929   1,567,929
        Power
------- ------------------ ----------- ----------- ------------ -----------
        Sole Dispositive      -0-         -0-          -0-         -0-
        Power
------- ------------------ ----------- ----------- ------------ -----------
        Shared             1,567,929   1,567,929    1,567,929   1,567,929
        Dispositive Power
------- ------------------ ----------- ----------- ------------ -----------
                               JD          GG          GN
------- ------------------ ----------- ----------- ------------ -----------
(a)     Beneficial         1,573,383   1,567,929    1,533,462
        Ownership
------- ------------------ ----------- ----------- ------------ -----------
(b)     Percentage of        7.29%       7.27%        7.11%
        Class
------- ------------------ ----------- ----------- ------------ -----------
(c)     Sole Voting Power    5,454        -0-          -0-
------- ------------------ ----------- ----------- ------------ -----------
        Shared Voting      1,567,929   1,567,929    1,533,462
        Power
------- ------------------ ----------- ----------- ------------ -----------
        Sole Dispositive     5,454        -0-          -0-
        Power
------- ------------------ ----------- ----------- ------------ -----------
        Shared             1,567,929   1,567,929    1,533,462
        Dispositive Power
------- ------------------ ----------- ----------- ------------ -----------


Item 5.        Ownership of Five Percent or Less of a Class

Not Applicable.

Item 6.        Ownership of More than Five Percent on Behalf of Another Person

Not applicable.


Item 7.        Identification and Classification of the Subsidiary Which
               Acquired the Security Being Reported on By the Parent Holding
               Company.

Not applicable.

Item 8.        Identification and Classification of Members of the Group

No reporting person is a member of a group as defined in Section
240.13d-1(b)(1)(ii)(H) of the Act.

Item 9.        Notice of Dissolution of Group

Not applicable.

Item 10.       Certification

By signing below we certify  that, to the best of our knowledge and belief,  the
securities  referred to above were acquired and are held in the ordinary  course
of business  and were not  acquired  and are not held for the purpose of or with
the  effect  of  changing  or  influencing  the  control  of the  issuer  of the
securities  and were not  acquired and are not held in  connection  with or as a
participant in any transaction having that purpose or effect.

EXHIBITS

A:       Joint Filing Statement








                                    Signature

         After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.


Date:    February 4, 2005



                                             
ALTA PARTNERS                                   ALTA CALIFORNIA PARTNERS, L.P.

                                                By:  Alta California Management Partners, L.P.


By:      /s/ Jean Deleage                            By:               /s/ Jean Deleage                .
   -----------------------------------------            ------------------------------------------------
         Jean Deleage, President                              Jean Deleage, General Partner


ALTA CALIFORNIA MANAGEMENT PARTNERS, L.P.                     ALTA EMBARCADERO PARTNERS, LLC



By:      /s/ Jean Deleage                            By:      /s/ Jean Deleage
   -----------------------------------------            ------------------------------------------------
         Jean Deleage, General Partner                        Jean Deleage, Member


         /s/ Jean Deleage                                     /s/ Guy Nohra
--------------------------------------------            ------------------------------------------------
         Jean Deleage                                         Guy Nohra


         /s/ Garrett Gruener
--------------------------------------------
         Garrett Gruener




                                    EXHIBIT A

                            AGREEMENT OF JOINT FILING



Date:    February 4, 2005


                                    Signature

         After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.




                                             

ALTA PARTNERS                                   ALTA CALIFORNIA PARTNERS, L.P.

                                                By:  Alta California Management Partners, L.P.


By:      /s/ Jean Deleage                            By:               /s/ Jean Deleage                .
   -----------------------------------------            ------------------------------------------------
         Jean Deleage, President                              Jean Deleage, General Partner


ALTA CALIFORNIA MANAGEMENT PARTNERS, L.P.                     ALTA EMBARCADERO PARTNERS, LLC



By:      /s/ Jean Deleage                            By:      /s/ Jean Deleage
   -----------------------------------------            -----------------------------------------
         Jean Deleage, General Partner                        Jean Deleage, Member


         /s/ Jean Deleage                                     /s/ Guy Nohra
--------------------------------------------            -----------------------------------------
         Jean Deleage                                         Guy Nohra


         /s/ Garrett Gruener
--------------------------------------------
         Garrett Gruener






                                  Attachment A


Alta Partners provides  investment  advisory services to several venture capital
funds including Alta California  Partners,  L.P. and Alta Embarcadero  Partners,
LLC. Alta California Partners, L.P. beneficially owns 1,117,439 shares of Common
Stock and 97,766 shares of Convertible Exchangeable Preferred Stock (convertible
into  416,023  shares  of  Common  Stock).   Alta  Embarcadero   Partners,   LLC
beneficially  owns 24,961 shares of Common Stock and 2,234 shares of Convertible
Exchangeable  Preferred Stock  (convertible  into 9,506 shares of Common Stock).
The respective  general partners and members of Alta California  Partners,  L.P.
and Alta  Embarcadero  Partners,  LLC exercise sole voting and investment  power
with respect to the shares owned by such funds.

Certain  principals  of Alta  Partners are general  partners of Alta  California
Management  Partners,  L.P.  (which  is a  general  partner  of Alta  California
Partners,  L.P.) and  members  of Alta  Embarcadero  Partners,  LLC.  As general
partners  and members of such  entities,  they may be deemed to share voting and
investment  powers over the shares held by such funds.  The  principals  of Alta
Partners disclaim beneficial  ownership of all such shares held by the foregoing
funds, except to the extent of their proportionate pecuniary interests therein.

Mr. Jean Deleage,  Director,  is a general partner of Alta California Management
Partners, L.P. (which is the general partner of Alta California Partners,  L.P.)
and a member of Alta Embarcadero Partners,  LLC. Thus he currently shares voting
and  dispositive  powers over the  1,117,439  shares of Common  Stock and 97,766
shares of Convertible  Exchangeable  Preferred Stock  (convertible  into 416,023
shares of Common Stock)  beneficially owned by Alta California  Partners,  L.P.,
and  the  24,961  shares  of  Common  Stock  and  2,234  shares  of  Convertible
Exchangeable  Preferred  Stock  (convertible  into 9,506 shares of Common Stock)
beneficially owned by Alta Embarcadero  Partners,  LLC. He disclaims  beneficial
ownership of all such shares held by the foregoing funds except to the extent of
his proportionate  pecuniary interests therein. He holds Stock Options for 5,454
shares of Common Stock granted  11/15/1996 which were fully vested on 11/15/2001
and will expire on 11/15/2006.

Mr. Garrett Gruener is a general partner of Alta California Management Partners,
L.P.  (which is the general  partner of Alta  California  Partners,  L.P.) and a
member of Alta  Embarcadero  Partners,  LLC. Thus he currently shares voting and
dispositive  powers over the 1,117,439  shares of Common Stock and 97,766 shares
of Convertible  Exchangeable Preferred Stock (convertible into 416,023 shares of
Common Stock)  beneficially  owned by Alta  California  Partners,  L.P., and the
24,961  shares of Common  Stock and  2,234  shares of  Convertible  Exchangeable
Preferred  Stock  (convertible  into 9,506 shares of Common Stock)  beneficially
owned by Alta Embarcadero  Partners,  LLC. He disclaims  beneficial ownership of
all  such  shares  held by the  foregoing  funds  except  to the  extent  of his
proportionate pecuniary interests therein.

Mr. Guy Nohra is a general partner of Alta California Management Partners,  L.P.
(which is the  general  partner  of Alta  California  Partners,  L.P.).  Thus he
currently  shares voting and  dispositive  powers over the  1,117,439  shares of
Common  Stock and 97,766  shares of  Convertible  Exchangeable  Preferred  Stock
(convertible  into 416,023  shares of Common Stock)  beneficially  owned by Alta
California  Partners,  L.P. He disclaims beneficial ownership of all such shares
held by the foregoing funds except to the extent of his proportionate  pecuniary
interests therein.

Alta Partners is a venture  capital firm with an office in San  Francisco.  Alta
Partners is California Corporation. Alta California Partners, L.P. is a Delaware
Limited Partnership,  and Alta Embarcadero Partners, LLC is a California Limited
Liability Company.