[news 2007-2008]

PARTEQ, Trellis Capital Corp. work together to leverage value of Ontario Commercial Investment Fund

For immediate release

November 9, 2007

KINGSTON/TORONTO, ON -- PARTEQ Innovations, the technology transfer office of Queen’s University, is pleased to announce that it has established a unique collaboration with Trellis Capital Corporation, a Toronto based private venture capital fund, to facilitate investment in early stage technologies developed out of university research.

The arrangement enables Trellis to make investments in emerging companies as the Limited Partner in the University Commercialization Fund L.P., established by PARTEQ as a registered Ontario Commercial Investment Fund (OCIF).

The OCIF program was established by the Ontario Ministry of Research and Innovation in 2005 to provide investment capital for high-risk technology businesses resulting from research at postsecondary institutions and research hospitals. Investors in eligible companies receive an additional investment from the province of Ontario in the form of grants equaling 30 per cent of each investment. PARTEQ has formed five venture capital funds now registered as OCIFs.

Through this OCIF Partnership, Trellis recently completed a follow-on investment in Datec Coating Corp, a Toronto-based advanced materials company developed out of research at Queen’s University. In keeping with its mission, Trellis has been working closely with Datec to help enhance its value.

“The OCIF is a good vehicle for anyone who wants to invest in a technology coming out of university research,” says John Molloy, President and CEO of PARTEQ. “We have developed a good relationship with Trellis through their involvement in Datec, so it seemed a logical next step for them to become the limited partner in the University Commercialization Fund. We feel that this is a novel approach to leveraging the value in an OCIF that offers value to both investors and investees.”

“This type of investing fits well with our investment philosophy of playing an active role with our investee companies – including, where appropriate, an operational role to help the company achieve its commercialization objectives,” says Dominic Talalla, managing partner of Trellis. “We look forward to investing in companies commercializing technology developed at Queen’s and other Ontario universities.”

“Trellis actively looks for compelling technologies developed at Canadian universities, in addition to investing in post-commercialization companies,” says Sunil Selby, managing partner of Trellis. “Our experience with Datec has shown us that there is considerable value to be realized through investing in these emerging technology companies, and we are very pleased to be offered this partnership with PARTEQ.”

Contact:
John Molloy
President & CEO
PARTEQ Innovations
P: 613. 533. 2342
F: 613. 533. 6853
jmolloy@parteqinnovations.com

Dominic Talalla
Managing Partner
Trellis Capital Corp.
P: 416. 398.8420
F: 416. 398.1799
E: talalla@trelliscapital.com

About Trellis Capital Corporation:
Trellis is a private venture capital fund that provides growth capital to proprietary technology companies in the Industrial, Manufacturing, Alternative Energy, Environmental, Electronic and Material technology sectors. These companies derive their competitive advantage through the development, or unique utilization of technology in the products or services they sell.
http://www.trelliscapital.com/

About Datec Coating Corp.:
Datec Coating Corporation is an advanced materials company that has developed a suite of patented sol-gel and composite material systems offering cost-effective, easily processed finished products in a broad range of applications, from corrosion and wear protection to non-stick finishes and innovative thick-film heating solutions.
www.dateccoating.com

About PARTEQ Innovations:
PARTEQ Innovations is the not-for-profit technology transfer arm of Queen’s University. PARTEQ works with Queen’s researchers and the business and venture capital communities to bring early stage technologies to market. Since 1987 PARTEQ has been instrumental in the establishment of nearly 40 companies developing a variety of products, from potential drugs for Alzheimer’s, cancer and heart disease to automated bacteria detection for water systems, solar-powered appliances, and advanced materials used in the plastics, automotive, aerospace and household appliance industries. While primarily focused on discoveries generated by Queen’s University, PARTEQ also offers its services to the Royal Military College of Canada, Kingston General Hospital, and the University of Toronto.
www.parteqinnovations.com