"Ireland -- New Land of Opportunity" Says Irish Deputy Prime Minister at Silicon Valley Meeting.

SAN JOSE, Calif.--(BUSINESS WIRE)--June 25, 1998--Speaking today at a meeting sponsored by Enterprise Ireland, the Irish Deputy Prime Minister Mary Harney launched the Millennium Entrepreneur Fund, a $1.5 million effort to encourage U.S.-based Irish technologists to bring their ideas to life in Ireland.

The goal of the fund is to assist 10 new high potential start-ups over a 3 to 4 year period with up to $150,000 each in seed capital, in return for an equity stake. Minister Harney made the announcement at the conclusion of a partnership mission that brought senior executives from 21 Irish technology companies to several U.S. cities to discuss business partnerships with U.S. corporations. The mission is jointly organized by the U.S. Small Business Administration and Enterprise Ireland, the business development support agency to Irish industry.

The group consists of companies in the software and electronics industries, as well as a number of "linkage" ventures that operate as sub-contractors to the Irish-based subsidiaries of corporations such as Dell, 3Com and Hewlett Packard. Three similar missions since 1995 have thus far yielded 49 strategic agreements and a further 20 are expected this year.

Minister Harney said that for both overseas and native investors, Ireland has become "a new land of business opportunity" over the past decade. According to the U.S. Department of Commerce, the average rate of return earned by U.S. manufacturers in Ireland is 25%, close to four times the EU and world average. "In addition to these greenfield investment opportunities," said the Minister, "there is strong profitable growth potential for both U.S. and Irish companies through strategic alliances where each party brings unique expertise, infrastructure or local knowledge to the partnership. Several young Irish-owned technology enterprises are becoming serious international players and are attractive partnership prospects for U.S. corporations seeking access to European markets and seeking to strengthen their technology base."

"It is this facet of development we are encouraging with this mission, while highlighting, through the Millennium Entrepreneur initiative, the immense opportunities for Irish nationals who make Ireland their home base for international development," Minister Harney added.

The new fund is jointly sponsored by LM Ericsson, Bank of Ireland, prominent Irish industrialist Neil McCann, Enterprise Ireland and the European Union. This initiative follows closely on the Opportunity Ireland initiative launched in March to highlight the jobs potential in Ireland for electronics engineers and software specialists. Details of Irish companies seeking such personnel are available on http://www.forbairt.ie/opptun.htm and http://www.nsd.ie.

Hugo Paemen, Head of the European Commission Delegation in Washington, welcoming the new fund, said: "Irish people overseas have played a significant role in the economic development of many countries, not least the U.S. Today's new opportunities for successful individuals to bring back their skills and expertise to Ireland are most encouraging. I see the fund not only contributing to Ireland's further development, but also as a sign of increasing transatlantic co-operation."

Enterprise Ireland is a new Irish government agency focused on developing Irish-owned export industry in all sectors. It has offices throughout the world, including two in the U.S., in Palo Alto, Calif. and New York City. -0-

For Fund Application Information Contact:

Ireland:
Dr. Tony Shiels or Catherine Grant of Enterprise Ireland
Tel. [phone]; Fax [phone]; email [e-mail],
[e-mail].

USA:
Larry Mone, Enterprise Ireland, Palo Alto, Calif.
Tel. [phone]; Fax [phone]; email [e-mail]
Nick Mernagh, Enterprise Ireland, N.Y.
Tel [phone]; Fax [phone]; email [e-mail]


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