Toronto, April 14, 2004. VenGrowth Capital Partners (“VenGrowth”), a leading private equity firm with over $1 billion in assets under management, is the top choice for investors in national Labour Sponsored Investment Funds (“LSIFs”), following another dominant fundraising season. VenGrowth today announced it raised $102.7 million in new capital for the VenGrowth LSIFs for the period from March 6, 2003 to March 1, 2004. The fundraising success will allow the VenGrowth LSIFs to provide critical follow-on funding to emerging portfolio companies and capitalize on additional outstanding investment opportunities. This marks the seventh consecutive RRSP season that VenGrowth LSIFs have been the sales and market share leader among Ontario-based LSIFs.

The results were posted by VenGrowth’s three currently available LSIFs (the “VenGrowth Funds”): The VenGrowth II Investment Fund Inc. (“VenGrowth II”), The VenGrowth Advanced Life Sciences Fund Inc. (“VenGrowth Advanced Life Sciences Fund”) and The VenGrowth Traditional Industries Fund Inc. (“VenGrowth Traditional Industries Fund”). The VenGrowth Funds were ranked as the top three selling Ontario-based LSIFs for the RRSP fundraising season.

VenGrowth Funds: Fundraising Activity from March 6, 2003 to March 1, 2004

*as of March 26, 2004

"We appreciate this tremendous vote of confidence from our advisors and shareholders," said Deborah Gray, Senior Vice President Sales & Marketing, Managing General Partner of VenGrowth. "Our industry-leading sales position is an overwhelming endorsement of VenGrowth's experienced investment team, our proven investment strategy and track record."

VenGrowth ranks as one of a handful of top-tier Canadian venture capital firms capable of raising and deploying significant capital during even the toughest private equity fundraising environments – periods that tend to yield abundant investment opportunities. The private companies in LSIF portfolios typically require a series of important funding rounds before they are ready for an “exit” event such as listing on a public stock exchange (IPO) or a purchase by a strategic acquirer. VenGrowth has capitalized on its strong financial position in a weaker economic environment over the past three years, investing in a broad range of attractive private companies at attractive valuations.

“Shareholders in the VenGrowth Funds stand to benefit from our ability to provide capital to new and existing portfolio companies as the private equity environment continues to climb out of the recent trough,” explained Dave Ferguson, Managing General Partner of VenGrowth. “We believe we are entering the next phase of the venture capital cycle where it will be increasingly possible to generate shareholder returns by exiting mature portfolio companies.”

Life Sciences attracting healthy attention

Canadians’ growing appreciation of the health care sector in an aging society was evident in the VenGrowth Advanced Life Sciences Fund’s industry-leading fundraising effort. In just its third year, The Fund attracted $39.9 million in capital, ranking first for all Ontario-based LSIFs by funds raised. The Fund was the most active diversified life sciences group in Canada from March 6, 2003 to March 1, 2004, deploying $40 million to eight biotechnology, diagnostic and other special life sciences companies with products focused on multiple unmet medical needs.

VenGrowth’s current flagship Fund, VenGrowth II, garnered a substantial $39.3 million in new capital in what was its final fundraising season. VenGrowth has confirmed that VenGrowth II will soon close to new investors as the portfolio moves into a maturity phase. With over $514.0 million in net assets as of March 26, 2004, the Fund is well positioned to supply crucial follow-on funding to its diversified portfolio of companies. The decision to cap the Fund is designed to maximize return potential for shareholders. VenGrowth II deployed $88.3 million to 23 innovative companies from March 6, 2003 to March 1, 2004.

VenGrowth was the most active Canadian venture capital investor managing both retail and institutional assets from March 6, 2003 to March 1, 2004, deploying a total of $148 million to 31 high-growth companies through its retail funds. Over the same period, VenGrowth also led venture capital investment in the Ottawa area, a key technology cluster. VenGrowth expects its active investment approach in the recent “buyers market” to benefit shareholders with improved returns as valuations begin to reflect an improved private equity environment.

About VenGrowth

With over $1 billion in assets under management, VenGrowth is Canada’s largest private equity and venture capital firm managing both retail and institutional assets. Since 1982, VenGrowth’s accomplished team of seasoned private equity managers has invested over $1 billion in 169 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 160,000 individual investors as well as leading pension funds, insurance companies and family foundations. Portfolio companies benefit from VenGrowth’s substantial experience, resources, and hands-on, value-added investment style. VenGrowth is 100% independently owned by employees that are dedicated to generating superior returns for shareholders in its Funds. VenGrowth’s offices are located in Toronto (Corporate Headquarters) and Ottawa. VenGrowth Capital Partners refers to VenGrowth Capital Partners Inc. and its affiliates. For more information, please visit www.vengrowth.com

About VenGrowth II

VenGrowth II is a broadly diversified, core venture capital fund focused on innovative growth industries for superior long-term return potential. Launched in 2000, VenGrowth II is Canada’s largest national LSIF with over 100,000 existing investors. The Fund’s portfolio is diversified across a broad range of predominantly later-stage companies and industry sectors spanning Internet infrastructure, enterprise software, communications, semiconductors, life sciences, traditional industries and special growth opportunities. This diversified approach is designed to offer investors the combined benefits of high return potential and lower risk. The Fund is managed by a team of specialized VenGrowth professionals with extensive operational and industry experience. The Fund also leverages the expertise of an external advisory board including high profile members of U.S. and Canadian business communities. In addition, the professionally managed Fund offers investors long-term performance potential, 100% RRSP-eligibility and, through its LSIF structure, eligibility for substantial tax credits. The Fund had net assets of $514.0 million as of March 26, 2004.

About VenGrowth Advanced Life Sciences Fund

The VenGrowth Advanced Life Sciences Fund Inc. focuses on advanced investment opportunities within Canada’s high growth life sciences sector. Launched in 2002, the Fund has invested over $80 million in a diversified portfolio of companies - elevating VenGrowth to a leadership position among investors in the burgeoning life sciences area. Sectors targeted by the Fund include biotechnology, pharmaceuticals, diagnostics, medical devices and imaging products and other special life sciences opportunities. This diversified approach is designed to offer investors the combined benefits of high return potential and lower risk. The Fund is managed by a team of specialized VenGrowth professionals led by Dr. Luc Marengčre, a highly regarded scientist and venture manager. The Fund also leverages the expertise of an external advisory board including leading members of the North American medical and life sciences communities. In addition to expert management, the Fund offers investors long-term performance potential, 100% RRSP-eligibility and, through its labour sponsored investment fund structure, eligibility for substantial tax credits. The Fund had net assets of $165.3 million as of March 26, 2004.

About VenGrowth Traditional Industries Fund

The VenGrowth Traditional Industries Fund Inc. is VenGrowth’s most conservative LSIF to date. Launched in 2003, the Fund focuses on predominantly small and medium sized Canadian companies in traditional manufacturing and services industries that are expected to generate sustainable cash flows. The Fund invests primarily using debt instruments with the objective of generating interest and dividend income to the Fund (typically known as mezzanine financing) as well as long-term capital appreciation. The Fund is managed by a team of specialized VenGrowth professionals led by Graham McBride, a highly regarded mezzanine financing expert with over 17 years of experience. In addition to expert management, the Fund offers investors long-term performance potential, 100% RRSP-eligibility and, through its LSIF structure, eligibility for substantial tax credits. The Fund had net assets of $23.5 million as of March 26, 2004.

For further information:

Ed Dermit,
Vice President, Marketing
VenGrowth Capital Partners Inc.
(416) 967-2392
ed@vengrowth.com