2. Managing VC investments 13 th February 2003 David Ward MTI Partners (www.mtifirms.com)

3. MTI’s History Founded in 1983 with first fund (MTI) of £9m Second fund MTI Ventures raised 1990 - £15M, and third fund MTI3 raised £30m in 1997 All now fully invested with MTI (2.7X) and MTIV realised in whole or majority part –MTI3 - 65% cash returned, balance of portfolio still strong The current fund - MTI4 had a final closing in Jan 01 – £ 105m, currently ~ 40% invested or committed

4. MTI’s Principal Features - I Substantial operational CEO experience of MTI executive team Extensive participation in management of investee companies by MTI executive team Focus on UK early stage technology - investing series A or B with £1m - £5m; expecting to double commitment during life of investment Invests in companies that have unique and protectable IPR in the general technology sector including: –IT software & hardware –Comms software & hardware –Materials Science –Industrial products –Biotech (e.g. medical devices)

5. MTI’s Principal Features - II Long standing and stable executive team - currently 7 investment professionals + 2 support professionals “Best of Breed” performance in high technology early stage venture capital UK centric, based in Watford and London Limited Partners are long term investors, mostly Institutional Pension funds (MTI funds are 10 year duration)

6. Example Investment Focus - I Software –Security – Armoursoft & Phocis –NMS – Chevin & Viewgate –Data mining – IntelliQ –Image handling – iBase –Document management - Formscape Communications –Hardware – Citel –Services – Message Pad –Fabless chip - DCT

7. Example Investment Focus - II Materials Science –Carbon fibre – ACG –Display technology – STL –Specialist inks - Sherwood Life Science –Drug discovery – Hunter Fleming –Healthcare software – ex investee

8. Thank you! David Ward MTI Partners Web: www.mtifirms.com Email: dward@mtifirms.com www.mtifirms.com