Investing in Yorkshire Breakfast Seminar Thursday 28 June 2007

Welcome from Richard Bamford Executive Chairman

Jonathan Diggines Chief Executive

EV in the Yorkshire region - introduction EV well established in the North of England £55 million under management Seminar to demonstrate EV’s spread of activities/funds targeting Yorkshire Opportunity to meet the teams investing in the region Introduction to some of our portfolio companies

EV well established in the North of England

£55 million under management

Seminar to demonstrate EV’s spread of activities/funds targeting Yorkshire

Opportunity to meet the teams investing in the region

Introduction to some of our portfolio companies

EV - background Independent specialist venture capitalist Working out of Preston, Leeds and Rotherham Team of 18, with long experience Third most active venture capital investor in the UK, again, and ninth in Europe during 2006 * £25 million available for investment in Yorkshire now * Source: Ernst & Young Venture Capital Insights Report 2004-2005 and 2005-2006

Independent specialist venture capitalist

Working out of Preston, Leeds and Rotherham

Team of 18, with long experience

Third most active venture capital investor in the UK, again, and ninth in Europe during 2006 *

£25 million available for investment in Yorkshire now

* Source: Ernst & Young Venture Capital Insights Report 2004-2005 and 2005-2006

EV – regional funds under management Technology three funds - £34 million investing in technology RisingStars Growth Fund I RisingStars Growth Fund II SYIF Pilot Seedcorn Fund Start ups Proof of concept Pre-revenue Through to AIM listings, Series A fundings and trade sales Dedicated, specialist investment team Institutional funds – investing for return

Technology

three funds - £34 million investing in technology

RisingStars Growth Fund I

RisingStars Growth Fund II

SYIF Pilot Seedcorn Fund

Start ups

Proof of concept

Pre-revenue

Through to AIM listings, Series A fundings and trade sales

Dedicated, specialist investment team

Institutional funds – investing for return

EV – regional funds under management Mainstream venture capital Private equity ? Coalfields Enterprise Fund £10 million targeting the former English coalfield areas MBOs, MBIs, development capital and turnarounds

Mainstream venture capital

Private equity ?

Coalfields Enterprise Fund

£10 million targeting the former English coalfield areas

MBOs, MBIs, development capital and turnarounds

Julian Viggars Head of Technology Investment

EV’s Technology Investment Team Julian Viggars Head of Technology Investment Edward French Investment Director Dr Mark Rahn Investment Manager Dr Mark Wyatt Investment Director Tina Ward Fund Administrator

RisingStars Growth Fund I & II What do we do? provide start up and early stage seed capital to high growth technology businesses predominantly in the North of England investment range £50k to £1.5m What don’t we do just provide the funding

What do we do?

provide start up and early stage seed capital to high growth technology businesses

predominantly in the North of England

investment range £50k to £1.5m

What don’t we do

just provide the funding

What do we look for? Clever technology or novel ideas that will use technology Applications that will address large and global markets (£100m) A protectable position Clear exit potential Sensible founders

Clever technology or novel ideas that will use technology

Applications that will address large and global markets (£100m)

A protectable position

Clear exit potential

Sensible founders

Early stage technology investment £34 million of funds available for early stage technology investment Lead deals – 38 to date Creating businesses, not just investing Proof of concept investing to fail quickly clear risk management by investment in stages Best people 55 executive and non-executive posts identified and filled to date Board positions when necessary Exit opportunities under constant review Ability to attract further syndicated funding c. £30m third party funds attracted alongside RisingStars Growth Fund I

£34 million of funds available for early stage technology investment

Lead deals – 38 to date

Creating businesses, not just investing

Proof of concept

investing to fail quickly

clear risk management by investment in stages

Best people

55 executive and non-executive posts identified and filled to date

Board positions when necessary

Exit opportunities under constant review

Ability to attract further syndicated funding

c. £30m third party funds attracted alongside RisingStars Growth Fund I

RisingStars Growth Fund - highlights Quoted Investments Provexis – 3p, value £12.5m, £2.1m refinancing March 2007 Plant Impact – listed October 2006 at 38p now 50p, value £11.7m Trade Sales Next Device – 2.1 x cash plus uncapped earn out 84% IRR SpiraTech – 1.2 x cash (£2.1 million potential) > 30% IRR Series A Fundings Blue Prism £1m Endeavour / MSIF Femeda £1.4m Acceleris / NStar / Trapezia Acal £1.6m Carbon Trust / Synergis

Quoted Investments

Provexis – 3p, value £12.5m, £2.1m refinancing March 2007

Plant Impact – listed October 2006 at 38p now 50p, value £11.7m

Trade Sales

Next Device – 2.1 x cash plus uncapped earn out 84% IRR

SpiraTech – 1.2 x cash (£2.1 million potential) > 30% IRR

Series A Fundings

Blue Prism £1m Endeavour / MSIF

Femeda £1.4m Acceleris / NStar / Trapezia

Acal £1.6m Carbon Trust / Synergis

Develops natural and non-toxic products to improve plant healthcare £30k initial deal in 2003 followed by tranches, then merged with trading business in 2005 Built team added Chairman, FD and NXD RSGF board rep AIM flotation Q4 2006 valuation c. £9m at IPO current market cap. c.£13m Total investment £870k Return (current NAV) £2.44m “ Sustainable green agrichemistry” IP secured Licensing talks IPO Field trials Corp. restructure

Develops natural and non-toxic products to improve plant healthcare

£30k initial deal in 2003 followed by tranches, then merged with trading business in 2005

Built team

added Chairman, FD and NXD

RSGF board rep

AIM flotation Q4 2006

valuation c. £9m at IPO

current market cap. c.£13m

Total investment £870k

Return (current NAV) £2.44m

RisingStars Growth Fund II Currently £13.75 million – looking to increase Four deals completed to date - £326k invested, further £734k committed Yuuguu – software for screenshare applications Integrated Hydrogen Solutions – technology for the new hydrogen economy – storage and release Chromatide – chemical synthesis of large molecules nCapsa – software for consumer electronics Expect to have completed a further ten deals by December 2008

Currently £13.75 million – looking to increase

Four deals completed to date - £326k invested, further £734k committed

Yuuguu – software for screenshare applications

Integrated Hydrogen Solutions – technology for the new hydrogen economy – storage and release

Chromatide – chemical synthesis of large molecules

nCapsa – software for consumer electronics

Expect to have completed a further ten deals by December 2008

Edward French Investment Director

Early stage technology investment spread

Early stage technology investment spread

Femeda – starting point Opportunity identified for new “home treatment for female Urinary Inco.” Disposable “slendertone for the pelvic floor” Existing applicant “unsuitable for investment” Legacy Products

Opportunity identified for new “home treatment for female Urinary Inco.”

Disposable “slendertone for the pelvic floor”

Existing applicant “unsuitable for investment”

Femeda – now Introduced: Chairman, CEO, engineering and clinical leads Helped in-licence technology from a UK university £1.4m Series A completed Approaches on route-to-market deals Alison Kibble, CEO

Introduced: Chairman, CEO, engineering and clinical leads

Helped in-licence technology from a UK university

£1.4m Series A completed

Approaches on route-to-market deals

nCapsa – starting point Very strong technology founder Great market opportunity Software for improving the user-interface of consumer electronics IP protection

Very strong technology founder

Great market opportunity

Software for improving the user-interface of consumer electronics

IP protection

nCapsa – now Recruited Chairman, NXD, FD (nearly CEO!) First investment: testing route-to-market Larger sum followed to build out product and engage with customers Early partnership with Silicon vendor MoU with STB manufacturer Investor interest in £2m round

Recruited Chairman, NXD, FD (nearly CEO!)

First investment: testing route-to-market

Larger sum followed to build out product and engage with customers

Early partnership with Silicon vendor

MoU with STB manufacturer

Investor interest in £2m round

Yuuguu – starting point Good founding team Pre-launch demonstrator Massive opportunity - collaboration tools & esp. screensharing Revenue model unclear www.yuuguu.com

Good founding team

Pre-launch demonstrator

Massive opportunity - collaboration tools & esp. screensharing

Revenue model unclear

www.yuuguu.com

Yuuguu – now Introduced Chairman 3000 users, growing rapidly First revenues from conference calls Interest from various VC’s in follow-on round (first term sheet in) (Webex sold for $4,300m!) We introduced two new people to the team, and follow-on investors

Introduced Chairman

3000 users, growing rapidly

First revenues from conference calls

Interest from various VC’s in follow-on round (first term sheet in) (Webex sold for $4,300m!)

We introduced two new people to the team, and follow-on investors

Summary Wide range of sectors of interest Typically pre-revenue investing Massive opportunity is vital Happy to help build the company

Wide range of sectors of interest

Typically pre-revenue investing

Massive opportunity is vital

Happy to help build the company

Paul Taberner Investment Director

The Coalfields Enterprise Fund investment team Paul Taberner Investment Director Wayne Thomas Investment Director Tina Ward Fund Administrator

Coalfields Enterprise Fund - overview £10 million fund managed on behalf of Department for Communities and Local Government (formerly Office of the Deputy Prime Minister) New and existing SMEs located in or looking to relocate into the former English coalfield areas Includes large proportion of Yorkshire All stages considered, including pre-revenue and early stage Most sectors considered, although some exclusions under State Aid rulings Equity, mezzanine and loan funding of £40,000 to £500,000 with follow-on funding available 50% matched funding required Can lead transactions and participate in larger syndicate packages

£10 million fund managed on behalf of Department for Communities and Local Government (formerly Office of the Deputy Prime Minister)

New and existing SMEs located in or looking to relocate into the former English coalfield areas

Includes large proportion of Yorkshire

All stages considered, including pre-revenue and early stage

Most sectors considered, although some exclusions under State Aid rulings

Equity, mezzanine and loan funding of £40,000 to £500,000 with follow-on funding available

50% matched funding required

Can lead transactions and participate in larger syndicate packages

Coalfields Enterprise Fund - objectives To address the ‘equity gap’ in the former English coalfield areas Provide investment to growing and sustainable businesses which have exhausted ‘traditional’ sources of debt finance Leverage other lending/investment Sustain economic development, regeneration and stimulate employment Make a commercial return, thereby recycling the funds To do so by taking an equity share in the business and adding value to the management Not grants or ‘soft’ loans

To address the ‘equity gap’ in the former English coalfield areas

Provide investment to growing and sustainable businesses which have exhausted ‘traditional’ sources of debt finance

Leverage other lending/investment

Sustain economic development, regeneration and stimulate employment

Make a commercial return, thereby recycling the funds

To do so by taking an equity share in the business and adding value to the management

Not grants or ‘soft’ loans

Why approach the Coalfields Enterprise Fund? Dedicated fund for the coalfield areas of Yorkshire & Humberside Investments targeted to support and encourage growth Flexible funding packages Added value through:- support and advice from EV access to other coalfield regeneration and support programmes access to wider business advice from and experience of EV Straight forward, no-nonsense and rapid application process

Dedicated fund for the coalfield areas of Yorkshire & Humberside

Investments targeted to support and encourage growth

Flexible funding packages

Added value through:-

support and advice from EV

access to other coalfield regeneration and support programmes

access to wider business advice from and experience of EV

Straight forward, no-nonsense and rapid application process

The Coalfields Enterprise Fund current portfolio Now comprises 14 businesses with a total of £3.9m invested or allocated to the portfolio Leverage of 3.4 times monies invested - £13.3 million Businesses based throughout England, with half the portfolio based in the Yorkshire region Operating across many different sectors Comprising start-up and early stage businesses (high risk) through to more mature and lower risk companies Actively looking to expand the portfolio and very much “open for business”

Now comprises 14 businesses with a total of £3.9m invested or allocated to the portfolio

Leverage of 3.4 times monies invested - £13.3 million

Businesses based throughout England, with half the portfolio based in the Yorkshire region

Operating across many different sectors

Comprising start-up and early stage businesses (high risk) through to more mature and lower risk companies

Actively looking to expand the portfolio and very much “open for business”

Doncaster based Design and manufacture nozzles used in global electronics industry 85% of product exported CEF funding to support relocation to larger premises and investment in tooling to expand range of manufactured products METRO TECHNOLOGIES LIMITED

Doncaster based

Design and manufacture nozzles used in global electronics industry

85% of product exported

CEF funding to support relocation to larger premises and investment in tooling to expand range of manufactured products

Sheffield based Manufacture forged rings for aerospace, oil and power generation sectors CEF funding facilitated management buyout from Gardner Aerospace Group Invested alongside management and bank – total funding package circa £3 million TC WILD LIMITED

Sheffield based

Manufacture forged rings for aerospace, oil and power generation sectors

CEF funding facilitated management buyout from Gardner Aerospace Group

Invested alongside management and bank – total funding package circa £3 million

Sherburn in Elmet based Design and manufacture sports equipment used in the education sector CEF funding helped new owners buy a sleepy business destined to close Looking to expand production and now selling direct to the educational sector Also establishing direct web-based offering to grass root sports clubs PMF PRODUCTS LIMITED

Sherburn in Elmet based

Design and manufacture sports equipment used in the education sector

CEF funding helped new owners buy a sleepy business destined to close

Looking to expand production and now selling direct to the educational sector

Also establishing direct web-based offering to grass root sports clubs