25 August 2005

The New Zealand Venture Investment Fund (VIF) is now calling for Proposals from experienced Venture Capital Fund Managers or firms, to establish or manage a VIF Seed Fund under the VIF Fund of Funds Programme.

It is expected that 2 or 3 new VIF Seed Funds will be established and will focus on New Zealand early stage investment opportunities. The Fund(s) could be part of an existing or new Fund that has a wider investment mandate. The VIF Seed Fund(s) will be privately managed on internationlly accepted commercial terms. It is expected that there will be strong institutional investor interest in this new investment round and in the fund managers that are selected by VIF.

VIF is seeking Fund Managers with appropriate Venture Capital investment experience. Knowledge of the New Zealand science and technology industry and investment opportunities (perhaps through a local partner), combined with strong international Venture Capital linkages, will be a prerequisite for the successful applicant.

VIF will commit capital for investment in the selected VIF Seed Fund(s), alongside private investors secured by the Fund Manager, on a 1:2 ratio.  An option is available for the private investors to buy out VIF's share in the VIF Seed Fund(s) up to the end of year five of the fund life, on attractive terms. VIF has NZ$35 milion available for investment in this new investment round and can invest up to $25 million into an individual VIF Seed Fund.

VIF is a Venture Capital Fund of Funds established by the New Zealand Government, to accelerate the growth of the New Zealand Venture Capital industry. Five Venture Capital Funds have been established under the VIF Programme to date.

For full details of the VIF Programme and to download the Application Guidelines please refer to the VIF website: www.nzvif.com. Application Guidelines can also be obtained from the New Zealand Venture Investment Fund office by telephoning (649) 917 9528 or by email request to contactus@nzvif.com.

Applications close at 5pm NZST (GMT+11), 12 September 2005.

To find out more about investing in New Zealand, refer to: www.investmentnz.govt.nz