GrowthWorks Capital Ltd.

GrowthWorks Capital Ltd.

April 17, 2009 17:56 ET

GrowthWorks Capital Ltd.: Retail Venture Capital Funds Get Boost from Provincial Governments Across the Country

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 17, 2009) - GrowthWorks(i) is pleased with the recent announcements made by three provincial governments, which have put forward amendments to legislation to increase the provincial tax credit for retail venture capital funds, including GrowthWorks managed funds.

"I applaud the decision made by these provincial governments who are keen to ensure a steady flow of venture capital is available to their small and medium-sized businesses," said David Levi, President and CEO of GrowthWorks. "The increase of provincial tax credits coupled with the level playing field in Saskatchewan will certainly make it more attractive for people to invest in our managed funds, which directly affect entrepreneurs and new and innovative businesses across the country."

On March 17, the New Brunswick government announced a proposed increase in the provincial tax credit from 15 percent to 20 percent, as well as an increase in the maximum annual eligible investment from $5,000 to $10,000.

On March 19, the Quebec government announced a proposed increase to the provincial tax credit from 15 percent to 25 percent for Fondaction, the highest provincial tax credit available for retail venture capital funds in the country.

On March 26, the Newfoundland and Labrador government announced a proposed increase to the provincial tax credit from 15 percent to 20 percent, effective for the 2009 tax year, with an annual eligible investment maximum increased to $10,000, matching that of Nova Scotia and New Brunswick.

In the same month, the Saskatchewan government announced in their budget speech that they would match the provincial tax credit for federal retail venture capital funds, like GrowthWorks Canadian Fund and GrowthWorks Commercialization Fund, in that province. To date, only provincially registered funds were able to offer a maximum $5,000 investment limit.

"It is clear these provincial governments recognize that improving access to venture capital is a direct driver of new technology development, innovation, job creation and economic growth in their respective provinces," said Levi.

On April 16, GrowthWorks announced an increase in the administration fee paid by GrowthWorks Atlantic Venture Fund to its Manager from 1.25% to 2.0% of the average net assets of the Fund, effective September 1, 2009. This increase was previously disclosed in GrowthWorks Atlantic Venture Fund's prospectus.

About GrowthWorks (www.growthworks.ca)

GrowthWorks™ managed funds provide investment capital for Canadian companies and tax-advantaged investment opportunities for Canadian investors. GrowthWorks(i) manages approximately $700 million in assets through the Working Opportunity Fund (EVCC) Ltd., GrowthWorks Atlantic Venture Fund Ltd., GrowthWorks Commercialization Fund Ltd. and GrowthWorks Canadian Fund Ltd. GrowthWorks identifies, analyzes and structures investments in companies with high growth potential. Particular emphasis is placed on IT, Life Sciences and Cleantech sectors. Building on more than 17 years of investment expertise, GrowthWorks is a leader in Canadian venture capital management.

(i) GrowthWorks refers to affiliates of GrowthWorks Ltd. and includes: GrowthWorks Capital Ltd., manager of the Working Opportunity Fund (EVCC) Ltd.; GrowthWorks WV Management Ltd., manager of GrowthWorks Canadian Fund Ltd. and GrowthWorks Commercialization Fund Ltd.; and GrowthWorks Atlantic Ltd., manager of GrowthWorks Atlantic Venture Fund Ltd. GrowthWorks is a registered trademark of GrowthWorks Capital Ltd. ENSIS is a registered trademark of ENSIS Capital Corporation.

The New Brunswick, Newfoundland and Labrador, Saskatchewan and Quebec announcements do not affect the federal tax credit available to share purchases of GrowthWorks managed funds. There can be no assurance that the amendments to legislation will be passed as proposed or at all. Tax credits are subject to certain conditions, including repayment if shares are not held for at least eight years. Commissions, trailing commissions, management fees and expenses all may be associated with investments in RVCs. RVCs are not guaranteed, their values change frequently and past performance may not be repeated. Read the prospectus. before investing. Effective November 29, 2005, the Fund purchased the assets of Canadian Science and Technology Growth Fund Inc. and Capital Alliance Ventures Inc. in exchange for Class A shares distributed to former shareholders of each of those funds. Effective October 24, 2008, GrowthWorks Canadian Fund purchased the assets of ENSIS Growth Fund Inc. in exchange for Class A shares distributed to former shareholders of that fund. Effective December 16, 2005, GrowthWorks Atlantic Venture Fund Ltd. purchased the assets of Workers Investment Fund Inc. in exchange for Class A shares (Balanced Series) distributed to former shareholders of that fund.

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