Canadian Science And Technology Growth Fund-Compliance With Nova Scotia Minimum Investment Criteria.

LONDON -- As of August 31, 2004, Canadian Science and Technology Growth Fund Inc. (the "Fund") had not fully satisfied the provisions of the Nova Scotia Income Tax Act regarding minimum investments. The Fund has invested a total of $2.2 million in the Province, approximately $1.2 million less than required as of this date.

The Fund continues to seek out investment opportunities in Nova Scotia and is considering several but has not yet been sufficiently satisfied to commit invested funds to such projects.

The Fund's management is engaged in ongoing discussions with the Ministry of Finance in Nova Scotia concerning the investment targets required by the legislation. Based on these discussions, management of the Fund expects that the Fund will be subject to a $240,000 refundable penalty. Furthermore, management expects the required investments would be made during the fiscal year ending August 31, 2005, at which time we expect the penalty amount would be refunded.

ABOUT CSTGF 

Canadian Science and Technology Growth Fund (CSTGF) Inc. is a national labour-sponsored venture capital fund that focuses on investing in private technology companies. Talvest Fund Management (a division of CIBC Asset Management Inc.) provides administration and marketing support. Find out more about CSTGF at www.cstgf.com or www.fullartoncapital.com .