T H O M S O N F I N A N C I A L

1. T H O M S O N F I N A N C I A L IT.CAN RoundtableCanadian Venture CapitalOverviewApril 2006 Darrell PintoDirector, Global PE Performance

2. Q4 Dollars Rebound From Q3 to Keep Pace With 2004 LevelsDollars Invested and Companies Financed # Companies Financed Amount Invested ($ Millions)

3. Trend in Year Over Year Dollars Invested Shows StabilityDollars Invested and Companies Financed – Four Quarter Rolling Averages # Companies Financed Amount Invested ($ Millions)

4. 2005 Activity Finishes on Par with 2004Dollars Invested and Companies Financed $5,930MM $3,748MM $2,647MM $2,616MM $1,836MM $1,829MM $1,674MM 1,015 Co’s 815 Co’s 740 Co’s 687 Co’s 645 Co’s 581 Co’s 591 Co’s 1999 2000 2001 2002 2003 2004 2005

5. Canada Lags US in Relative TermsDisbursements: Canada & US Amount Invested ($ CDN Billions)

6. Relatively Greater Number of Companies Financed in CanadaNumber of Companies Funded: Canada & US # Companies Financed

7. 4 M&A: $130 bil (disclosed deals only) 3 PRIVATE EQUITY: $49 bil 2 EQUITY: $1524 bil 1 BONDS: $867 bil Canada’s Financial Markets in 2004

8. PRIVATE EQUITY 3 Venture Capital is a Distinct Asset Class Announced Financings (2004 – June 2005) Attributes • Largely Equity • Active • Long Term EQUITY = 75% DEBT = 19% OTHER = 6%

9. PRIVATE EQUITY 3 Canada’s Private Equity Industry is Young Canadian Funds Segmented by Age

10. US VC Maturity versus Canada# of VC Funds by Vintage Year

11. PRIVATE EQUITY 3 Ontario and Quebec are the Main Consumers of VC 2005 VC Dollars Disbursed ($ Millions)

12. N.A. Context: Ontario and Quebec Finish in 7th and 9th Place2005 VC Disbursements Ranking by Province and State (Cdn$ MM) • Currency conversions made at deal dates – 2005 Exchange rate fluctuated between $1.20 and $1.16 • US data as per the MoneyTree survey conducted by PWC/Thomson Venture Economics/NVCA

13. Montreal Tops 2005 Canadian VC ActivityDollars Invested by Major Urban Centres 2005 $1.829 Billion 2004 $1.836 Billion

14. 3.3 Times More Invested in US Firms in 2005 Amounts Invested per Company, Canada & US Amount Invested ($ CDN Millions)

15. VC Disbursements Relative to GDP Has Stabilized After the Sharp Decline Since 2000 VC Disbursements Relative to GDP Trends • Although this metric has declined uniformly since 2000 across North America, there has been a relative stabilization after 2003 • Quebec ranked first in 2004 with its VC disbursements amounting to 0.237% of its GDP. • Ontario and BC both shared second rank with 0.158% which was only slightly higher than the national average of 0.141%. Source for GDP data: Statscan and US Bureau of Economic Analysis

16. Overall 2005 Fundraising Activity Surpasses 2004 by One ThirdNew Capital Commitments Amount Raised ($ Millions)

17. Individuals Pensions Corporations Government Endowments Insurance Other Foreign Sources of Capital Differ Between Canada and the US (2004) CANADA Total VC$ Raised = $1.7 B Total Buyout$ Raised = $1.9 B US Total VC$ Raised = US$17.5 B Total Buyout$ Raised = US$45.5 B

18. The Global VC Perspective … Patterns Look SimilarVC Invested Canada, US and Europe CANADA (Cdn $ bil) US (US $ bil) Europe (€ bil) TBD

19. Canada’s Global Ranking in GDP and VC Disbursements Top 10: 2004 GDP by Nation Top 10: 2004 VC Disbursements by Nation 5thRanking 9thRanking All figures in $Cdn bil All figures in $Cdn bil

20. Canada’s Global Ranking in VC Deal Activity 2004 Number of VC Deals by Nation 2004 Average Deal Sizes by Nation* 3rdRanking 24th Ranking All figures in $Cdn mil • Excludes Nations with < 10 deals in 2004

21. IT Dollars Invested Down Marginally on Year over Year BasisDollars Invested and Completed Transactions in IT # Financings Amount Invested ($ Millions)

22. Software, Communications and Networking Lead IT in 2005Dollars Invested in IT by Sub-Sector

23. VCs Continue Investment into Existing PortfoliosIT Dollars Invested, New vs. Follow-On ($ bil) $4.3 $2.6 $1.7 $1.0 $0.9 $0.8

24. Half of Disbursements Directed to Early Stage CompaniesIT Dollars Invested, Early vs Late Stage ($ bil) $4.3 $2.6 $1.7 $1.0 $0.9 $0.8

25. Foreign Investment Sustains Stabilizing Trend in IT Expenditures in CanadaDollars Invested in Canadian Companies ($ billions) IT Domestic Investors $4.3 Foreign Investors $2.6 $1.7 $1.0 $0.8 $0.9 Non-IT Domestic Investors Foreign Investors $1.7 $1.1 $0.9 $0.9 $0.9 $0.8

26. Most 2005 IT Deals Under $20 MMDistribution of 2005 IT Announced Deals ($ 000s) Entrisphere Inc. Cornice Inc. Meriton Networks Tropic Networks Nextone Communications Simpler Networks BelAir Networks Intellon Corp. JumpTap Inc.

27. Top 10 (Disclosed) VC Deals of 2005 C&N C&N C&N C&N C&N * Includes foreign participation

28. VC-Backed IPOs and M&As, Published Examples in Q4 2005

29. Canadian VC-backed IPO and M&A Exit Trends# of Exits and Average Disclosed Transaction Sizes # VC-Backed Exits IPO Average Disclosed Offering/Transaction Sizes ($ MM) M&A

30. Canadian PE Investment Returns Net Investment Returns for Periods ended June 30, 2005

31. Former VC-backed Companies Perform Relatively Better than Non-VC backed Public PeersPost Venture Capital Index versus Other Public Market Benchmarks 1-year returns* 3-year returns* PVCI PVCI * as of January 24, 2006

32. www.canadavc.com Questions? Darrell PintoDirector, Global PE Performance Email: Darrell.Pinto@thomson.com