[news 2005 - 2006]

PARTEQ Innovations offers unique treasury services to spinoff companies

June 9, 2006

For immediate release

KINGSTON, ON -- PARTEQ Innovations, the technology transfer office of Queen's University, is pleased to announce the launch of an innovative financial service for its spinoff companies .

Recognizing that emerging companies regularly face short-term cycles of cash surpluses or shortfalls, PARTEQ Treasury Services will assist its startups in managing these fluctuations by offering two unique financing instruments.

PARTEQ Treasury Services will leverage its pool of existing resources to offer more attractive interest rates than spinoff companies may be able to secure by themselves on temporary surplus cash; PARTEQ will also provide short-term loans to spinoff companies, provided those loans are secured by the companies' Scientific Research and Experimental Development (SR&ED) Investment Tax Credits.

PARTEQ is the first technology transfer office in Canada to offer these financing arrangements. Since 1987 PARTEQ has been instrumental in the founding of approximately 40 early stage companies.

“The purpose is to provide a rapid, easy vehicle for spinoffs to manage immediate, short-term fluctuations in their cash cycles,” says John Molloy, President & CEO of PARTEQ Innovations.

“Most spinoff companies earn SR&ED tax credits, and they all experience cash flow problems from time to time,” he explains. “PARTEQ Treasury Services allows these companies to leverage our infrastructure, our financial strengths and our long-term relationships with the banking community to obtain the best possible rates on their money.”

“This unique tool builds on the spinoffs' pre-existing relationships with PARTEQ and allows the companies to address immediate cash-related issues quickly and easily,” says Paul Vickers, Director of Finance at PARTEQ.

For example, a company looking to PARTEQ Treasury Services for a short-term bridging loan against a pending SR&ED tax credit could see the funds in their account in just a few days, he says. “We are already closely involved in helping the spinoffs manage their finances. This is just another way for us to improve that process, and to make their lives a little bit easier.”

PARTEQ Treasury Services will be made available to PARTEQ startup companies and where appropriate, to other early stage companies as well.

“Our unique structure and our relationship with Queen's University allow us to break new ground in this area,” Mr. Molloy says. “We have made it our business to do what we can to improve the process of advancing university-generated discoveries to market. PARTEQ Treasury Services is one more example of this.”

Contact:
John Molloy,
President & CEO
P: 613. 533. 2342
E: jmolloy@parteqinnovations.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.

PARTEQ's spinoff and associated companies include Neurochem Inc. of Montreal, Datec Coating Corp. of Milton, ON, EnerWorks Inc. of London ON, Cytochroma Inc. of Markham ON and AdapCS Canada Corp., AtheroChem Inc., BKIN Technologies Inc., Performance Plants Inc., Qubit Systems Inc. and Pathogen Detection Systems Inc., all of Kingston, ON.
www.parteqinnovations.com