Valuation Guidelines for the Canadian Venture Capital and Private

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					                               Valuation Guidelines for the
                     Canadian Venture Capital and Private Equity Sector


May 11, 2004 (Toronto, ON) - The CVCA - Canada’s Venture Capital & Private Equity Association
has released guidelines which will govern the valuation of unrealized venture capital and private
equity investments. These guidelines were prepared in conjunction with Réseau Capital and may
be reviewed on the CVCA’s website (www.cvca.ca).

The guidelines reflect extensive discussions which have taken place with venture capital and
private equity fund managers and with institutions which invest in these funds. The CVCA
expects that the introduction of the guidelines will result in greater consistency and transparency
within the venture capital and private equity industry with regard to valuations. In the future,
industry performance data released by the CVCA will be based on these guidelines. As a result,
the CVCA believes that this data will be more useful to investors and policy makers in their
assessment of investment performance.

"These valuation guidelines have been drawn from the best of existing international practice and
are the result of extensive discussions within the CVCA.” said John Bradlow, chair of CVCA’s
Valuations Committee. “We are confident that the guidelines make the Canadian venture capital
and private equity industry a leader in this area."

The CVCA recognizes that international standards are evolving rapidly on the subject of the
valuation of venture capital and private equity investments. While no clear consensus exists at
present, it remains the firm commitment of the CVCA to work with other national associations to
develop a global standard which will facilitate the comparison of investment performance between
countries.

CVCA
The CVCA - Canada’s Venture Capital & Private Equity Association, was founded in 1974 and is
the association that represents Canada’s venture capital and private equity industry. Its almost
900 members are firms and organizations which manage the majority of Canada’s pools of capital
designated to be committed to venture capital and private equity investments. The CVCA fosters
professional development, networking, communication, research and education within the venture
capital and private equity sector and represents the industry in tax and regulatory matters.

For further information, please contact John Bradlow at (416) 645-3799.