GrowthWorks Atlantic Ltd.

GrowthWorks Atlantic Ltd.

January 16, 2006 11:59 ET

GrowthWorks Atlantic Venture Fund Makes New Investments and Plans Further Growth

HALIFAX, NOVA SCOTIA--(CCNMatthews - Jan. 16, 2006) - As GrowthWorks Atlantic Venture Fund begins its second RRSP sales season, Investment Advisors are pursuing the valuable tax credits offered by an investment in the Fund for their clients. In addition, investors are keen to support businesses in the Atlantic provinces.

"We have had incredible interest and support from Investment Advisors across Atlantic Canada," said Thomas J. Hayes, President and CEO of GrowthWorks Atlantic Venture Fund. "We are pleased that so many Advisors are recommending their clients purchase shares of our Fund which specifically invests in Atlantic Canadian businesses."

In addition to raising capital, the Fund has been actively investing in companies in Atlantic Canada over the past year. In November, the Fund invested $450,000 in AnyWare Group based in Saint John, New Brunswick. Also in 2005 the Fund invested $450,000 in Halifax Film Company.

"We also have term sheets out for three new investments," said Hayes. "Two of these investments are in Nova Scotia and one is in New Brunswick. We are also looking at opportunities in Newfoundland and Labrador."

At the end of 2005 GrowthWorks Atlantic Venture Fund merged with Workers Investment Fund in Fredericton, New Brunswick bringing the Fund's net assets to approximately $24 million and making the Fund the largest labour-sponsored investment fund based in Atlantic Canada.

"We have had a very eventful year," said Hayes. "We planned to grow the business quickly and expected there would be a strong interest from Investment Advisors. We are pleased that interest from entrepreneurs and investors is just as strong."

The Fund received a receipt for its final prospectus for its Balanced and 06 Commercialization series of shares on December 28, 2005. The Fund provides tax incentives for Atlantic Canadians to invest in up and coming companies in their home provinces. In addition to RRSP tax savings, eligible investors can receive 15% federal tax credits and 15% provincial tax credits (20% in Nova Scotia) resulting in up to $3,500 in tax savings on a $5,000 RRSP investment.

In December 2005, the New Brunswick provincial government extended the New Brunswick Labour-Sponsored Venture Capital Program through the 2006 taxation year. The provinces of Nova Scotia and Newfoundland and Labrador offer the program on an ongoing basis.

About GrowthWorks Atlantic Venture Fund

GrowthWorks Atlantic Venture Fund is an Atlantic Canadian venture capital fund that provides tax savings for investors and investment capital for Atlantic Canadian businesses.

GrowthWorks(i) ( is a recognized leader in venture capital fund management with proven experience in the raising and managing of capital. GrowthWorks™ managed funds, including GrowthWorks Atlantic Venture Fund, the Working Opportunity Fund, GrowthWorks Canadian Fund, and GrowthWorks Commercialization Fund, have approximately $800 million in combined assets.

(i)GrowthWorks refers to affiliates of GrowthWorks Ltd. and includes GrowthWorks Atlantic Ltd., manager of GrowthWorks Atlantic Venture Fund Ltd., GrowthWorks Capital Ltd., manager of the Working Opportunity Fund (EVCC) Ltd., and GrowthWorks WV Management Ltd., manager of GrowthWorks Canadian Fund Ltd. and GrowthWorks Commercialization Fund Ltd.

The Fund offers Balanced and Commercialization series of shares. Venture investments are allocated to a series based on the series' investment program. Approximately $1.6 million of the net assets of the Fund is allocated to Commercialization series and the remainder is allocated to Balanced series. Commissions, trailing commissions, management fees and expenses all may be associated with investments in labour sponsored venture capital corporations (LSVCCs). Please read the Fund's prospectus before investing. LSVCCs are not guaranteed, their values change frequently and past performance may not be repeated. Tax credits are subject to certain conditions including repayment if shares are not held for eight years and annual maximums depending on province of residence. There is no provincial tax credit program in PEI. RRSP contribution tax savings are subject to certain conditions, are not unique to the Fund and amounts are taxable when withdrawn.

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