[news 2007 - 2008]

Queen’s University receives $589,000 from PARTEQ Internet Ventures Fund

June 26, 2008

For immediate release

KINGSTON, ON – PARTEQ Innovations, the technology transfer office of Queen’s University, is pleased to announce that Queen’s will receive $589,000 from Covington Capital Corp. resulting from the university’s investment in the PARTEQ Internet Ventures Fund.

PARTEQ, in partnership with Covington, established the $2.5 million PARTEQ Internet Ventures Fund in 2001. A labour-sponsored Community Small Business Investment Fund, the PARTEQ fund focused on investing in early-stage Canadian internet and e-commerce companies. In 2003 the fund made an investment in PlateSpin Ltd., a Canadian internet startup company specializing in advanced automation software solutions for data centres. Earlier this year the Toronto-based PlateSpin was acquired by Novell, Inc. of Waltham, MA for $205 million, making it one of the most successful exits in the venture capital marketplace over the past 12 months.

“PlateSpin is an excellent example of the importance of venture capital in funding and developing Canada’s talented entrepreneurs, and in stimulating innovation and economic growth and development,” says John Molloy, President and CEO of PARTEQ Innovations. “PARTEQ and Queen’s are fortunate in having the opportunity to partner with Covington in turning innovative ideas and research into Canadian venture success stories.”

In less than five years PlateSpin grew from a small enterprise of just over 10 employees to a company with a global presence, notes Philip Reddon, Managing Director of Covington Capital Corp. “PlateSpin is a true success story and a testament to what can be achieved with the right combination of venture capital support, a talented team, and the identification of the right market opportunity,” he says.

Queen’s is one of two Ontario universities to receive returns from the deal. University of Western Ontario also invested in PlateSpin via its UWO Internet Ventures Fund. Both funds are managed by Covington.

The return of capital to PARTEQ and UWO represents the successful completion of the life-cycle of these CSBIF programs, says Mr. Reddon. “From raising capital throughout Ontario and deploying that capital to fund local entrepreneurs, to then returning significant proceeds back to the founding partners is exactly what the CSBIF program was created to achieve,” he says.

Contact:
John Molloy, President and CEO
PARTEQ Innovations
P: 613. 533. 2342
E: jmolloy@parteqinnovations.com

About Covington Capital Corporation:
Founded in 1994, Covington Capital Corp. (www.covingtonfunds.com) is one of Canada’s largest and most experienced venture capital investors. Covington Capital manages over $450 million in venture capital assets on behalf of institutional and retail investors. These funds invest in small-and-medium businesses throughout many industry sectors. Headquartered in Toronto, Covington Capital is an affiliate of Affiliated Managers Group, Inc. AMG is an asset management company with equity investments in a diverse group of boutique investment management firms. AMG’s strategy is to generate growth through the internal growth of its existing Affiliates, as well as through investments in new Affiliates.