TORONTO, September 21, 2006 - Leading private equity firm VenGrowth Private Equity Partners Inc. ("VenGrowth") has stressed the benefits of a "phased exit" for Canadian business owners considering their retirement strategy. The new VenGrowth Succession Planning Kit launched this week highlights the options available to Canadian business owners looking to maximize both financial and personal interests upon leaving their company.

"For many entrepreneurs, simply walking away from something they have spent years nurturing and building can be a difficult proposition, both in a business and emotional sense," says Graham McBride, VenGrowth Managing General Partner. "Our Kit explains an alternative that can enable entrepreneurs to phase out their operational and/or ownership control over time, an approach that can not only make it easier to 'let go' but can also help realize the maximum value for that business at the end of the day."

A phased exit, or "partial buyout", typically involves the introduction of a financial partner that will provide capital on the business' balance sheet in one form or another, taking on a portion of equity and a portion of risk in the business. Entrepreneurs can retain control over the business and the potential for further upside, while taking some personal risk off the table.

"There is a real benefit here for business owners in the sense that they can liquidate some of their hard work and secure some the upside that has been built up over the years," explains Mr. McBride. "The business owner also gains a partner who shares the same ultimate goal: maximizing the value of the business when the time comes for a full buyout. Often the financial partner will bring things to the table that help to increase that end value."

The phased exit enables business owners to start the succession process while they are still heavily involved in their business - a key recommendation within the VenGrowth Succession Planning Kit. The Kit addresses many of the key concerns of succession planning, including the questions that every Canadian business owner should be asking themselves in preparation for a successful exit.

Succession planning has been acknowledged as a significant issue as Canada's population ages and more and more business owners consider retirement. A 2005 study by the Canadian Federation of Independent Businesses revealed that 41% of owners of small and medium-size enterprises plan to exit their business over the next five years*. Only one third of those business owners have a succession plan in place - the majority of those are "informal" plans.

For more information on succession planning visit www.vengrowth.com. To order a copy of the VenGrowth Succession Planning Kit, email succession@vengrowth.com or call 1 800 832 7720 ext 245.

About VenGrowth's Traditional Industries Group
VenGrowth's Traditional Industries Group specializes in financing solutions for mid-market Canadian companies in traditional manufacturing and services industries that are expected to generate sustainable cash flows. The Group actively supports entrepreneur partners in the growth of their businesses and has extensive experience in guiding entrepreneurs through major business events including acquisitions, expansions, buyouts, phased exits, family transfers and IPOs. This group of VenGrowth professionals is led by Graham McBride, a highly regarded mezzanine financing expert with over 19 years of experience.

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 private equity managers have invested over $1.1 billion in over 180 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 180,000 individual investors and leading pension funds, banks, insurance companies and family foundations. Portfolio companies benefit from VenGrowth's substantial experience, resources, and hands-on investment style. VenGrowth's offices are located in Toronto (Corporate Headquarters) and Ottawa. For more information, please visit www.vengrowth.com.

Media Inquiries:
Angus Fisher
Manager, Media & Communications
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com

*Succession Can Breed Success, CFIB, June 2005