Australian Venture Capital Industry Hosts Biggest-Ever Gathering.

Business Editors

SYDNEY, Australia--(BUSINESS WIRE)--Oct. 10, 2001

Record Attendance Highlights Growth of Australian Venture Sector,

Confirms Rising Interest in Private Equity

The Australian venture capital industry will host the biggest-ever gathering of venture capital executives in Australia tomorrow when national and international delegates attend the opening day of AVCAL 2001.

International experts are to be prominent at the event, providing unique guidance on the venture sector at a time of uncertainty in the global economy.

"There is no better sign of the vitality of Australia's venture capital industry than the fact that our conference this year has attracted more interest than ever," said Mr Andrew Green, the executive director of the Australian Venture Capital Association Limited (AVCAL).

"The conference is booked out and we've even had to stop adding people to the wait-list," he said.

"One of the main reasons for the strong interest in our conference is the growing confidence in Australia's ability to commercialise our technology. This is partly due to Australian Federal Government initiatives such as Backing Australia's Ability, unveiled this year.

"We welcome initiatives such as the Australian Federation Fellowships, which have begun attracting some distinguished expatriate scientists resident in the US and encouraging them to return to Australia and continue their leading science research here," Mr Green said.

The conference, hosted each year by AVCAL, begins on Thursday October 11 and concludes on Saturday October 13 in Queensland, Australia.

Highlights of this year's conference include:

-- A record attendance of almost 500 delegates

-- A keynote speech by Senator the Hon. Nick Minchin, the Australian Federal
Government Minister for Industry, Science and Resources.

-- Plenary presentations by leading venture capitalists from Europe, the United
States and Asia, including: Mr Howard Cox, chairman elect of the US National
Venture Capital Association; Mr Edoardo Bugnone, chairman of the European
Private Equity and Venture Capital Association; Mr Marc Staal, chairman of the
Hong Kong Venture Capital Association; and Mr Adrian Beecroft, past chairman of
the British Venture Capital Association.

-- A session, expanded from last year, in which entrepreneurs will pitch their
business models to a panel of experienced venture capitalists (and receive
feedback in return).

-- A special session on the commercialisation of technology featuring: Dr Geoff
Garrett, chief executive of the CSIRO; and Dr Robin Batterham, chief scientist
of Australia and author of The Chance to Change, the report that influenced the
Australian Federal Government's Backing Australia's Ability innovation policy.

-- Presentations by executives from successful Australian companies backed by
venture capital, including: Mr Marc Dulude, chief executive of Moldflow
Corporation; Dr Chris Beare, director of business development at Cisco Systems
and former chief executive of Radiata; and Mr Steve Killelea, chief executive
of Integrated Research.

Industry growth

The expansion of the conference this year confirms the strength of the Australian venture capital industry, which set a new record in 2000 by raising more than A$1.2 billion during the year, according to the AVCAL 2000 Yearbook prepared by AVCAL and Venture Economics. The industry saw 42 new venture capital funds formed during the year, a record increase and twice the number of funds created in 1999.

International interest in Australia's venture sector continues to grow. Asian investors now account for more than 18 per cent of the committed capital at Australian venture capital funds. The percentage of capital from Australian sources in Australian funds fell from 96 per cent in 1999 to 76 per cent in 2000.

Investments from the US accounted for 3 per cent of the committed capital at Australian venture capital funds in 2000. While low, this is expected to grow as a result of the federal government's desire to make Australia an internationally competitive destination for venture capital investment.

"We see Australia as a very promising market for new venture opportunities," said Mr Edoardo Bugnone, founding partner of Argos Soditic, chairman of the European Private Equity and Venture Capital Association and a Plenary speaker at AVCAL 2001.

"There are closer ties being developed between Australian and European funds, adding to the momentum in Australian private equity."

There are also challenges ahead, according to Mr Howard Cox, a general partner at Greylock in Boston, chairman elect of the US National Venture Capital Association and a Plenary speaker at AVCAL 2001.

"Venture capitalists should be prepared to support their companies for longer periods of time in the current economic climate," said Mr Cox.

"However, innovation is just as important as ever and we continue to witness the rise of incredibly promising new companies - in Australia as well as the US."

About AVCAL

The Australian Venture Capital Association Limited (AVCAL) is the industry hub for members including investor groups, banks, incubators, angels, corporate advisers, technology companies, accountants, lawyers, government agencies and service providers that help support venture funds and private companies. AVCAL's venture members provide capital for early stage companies, later stage expansion, and finance for management buy-outs and management buy-ins of established companies. The investor members have A$6 billion either invested or available for investment. AVCAL's web address is www.avcal.com.au