Global Venture Capital Firm ETF Group Ramps Up U.S. Presence; Former J.H. Whitney, Eureka Broadband Executives Join VC to Support, Grow U.S. Operations.

Business/Technology Editors

NEW YORK--(BUSINESS WIRE)--June 12, 2001

Switzerland-based ETF Group, named European Venture Capitalist of the Year in 2000, continued its U.S. expansion with the hirings of Robert Logan and Robert W. Vanech, announced today from the company's New York offices. Logan will serve as vice president of ETF Group Inc., while Vanech was named director of business development. The appointments are effective immediately.

"Although the Venture Capital climate has cooled dramatically over the past year," said Michael Sheldon, president of ETF Group Inc., "the underlying pace of technology and productivity improvements continues unabated. In addition, our portfolio companies need our support and guidance more than ever. The key for our firm is to balance development of our existing portfolio companies with new investments. Bob and Robert will help us find and achieve that balance and establish a major presence in the U.S. at a time when many other VC firms are significantly scaling back."

"Current valuations are extremely appealing, but there are still more business plans than there is capital," said Logan, who will support the company's new investments in several key developing technology sectors, including supply chain management, security, network management, next generation network tools and outsourcing. "The technology companies we are looking to invest in must be able to demonstrate real cost savings, revenue enhancement or other forms of ROI for their customers. Fortunately, this isn't anything new for ETF Group, which has always recognized the importance of technologies that can help a company's bottom line."

Vanech, meanwhile, will make sure ETF Group's existing portfolio companies have the resources and expertise they need to deliver on this vision. "Most venture-backed technology companies all need help with sales and driving profits; my background as a recent entrepreneur and operator give me keen insight into helping our portfolio companies hit their objectives," said Vanech.

Robert Logan comes to ETF Group from J.H. Whitney & Co., where he served as vice president, Internet and software and saw more than a $400 million capital appreciation in the portfolio he managed. Logan was responsible for sourcing, evaluating, structuring and executing investments in early and later stage venture capital opportunities in Internet, infrastructure and software companies. Prior to J.H. Whitney, Logan served as product manager with Gartner Group's consulting practice, where he helped Fortune 500 firms build strategic plans to address Internet initiatives, Y2K plans, and other corporate IT decisions. Before that, Logan spent nearly ten years in the aeronautics industry. At the Sikorsky Aircraft Division of the United Technologies Corporation, Logan served as manager of quality systems, aircraft assembly, where he was tapped by the division president to lead a team that successfully achieved ISO 9000 certification. Logan started his career at Rockwell International, where he served as a project engineer for the Space Station Freedom and the Space Shuttle's Main Engine Programs. Logan holds a Bachelor's of Science in aeronautical engineering from Purdue University and a Master's of Business Administration from Pepperdine University.

Robert W. Vanech joins the company from Eureka Broadband Corporation, part of ETF Group's portfolio, which he founded and grew from startup to over 250 employees with $30 million in annual sales. Vanech was responsible for managing the Company's corporate and branch sales, marketing and customer care organizations, and for product strategy and development. Vanech served as president and sat on the Board of Directors at Eureka for three years. From 1990 until he founded Eureka in 1997, Vanech worked for MCI (now, Worldcom) where he led MCI's Investment Program in New York City. Throughout his eight year career at MCI, Vanech held various sales and management positions where he earned national recognition as a consistent top sales and revenue producer. Vanech holds a Bachelor's of Science in finance from Boston College.

About ETF Group

Part of a global network of offices in North America, Europe and Asia, ETF Group Inc. provides privately held high-tech companies with the resources and expertise needed to accelerate their international time-to-market and reduce market entry strategy error.

ETF Group is an international value-added venture capital company that helps emerging businesses become global technology leaders. Headquartered in Switzerland, ETF Group maintains a portfolio of about 60 companies and maintains a valuation of more than U.S. $500 million. Emphasizing enabling technologies in the telecommunication, media and technology sectors, ETF Group seeks out long-term investments in companies positioned to take advantage of opportunities in the current global technology landscape. For more information, visit the company's Web site at www.etfgroup.com.