Martlet Venture Management at the Final Stage to be Acquired By European Venture Capital Firm.

Business Editors

MONTREAL--(BUSINESS WIRE)--June 28, 2000

Martlet Venture Management Limited (CDNX:MVM) announced today that its discussions to be acquired by a publicly traded European Venture Capital firm, Knorr Capital Partners AG (KCP), are reaching final stages.

KCP's CEO Thomas Knorr commented, "This step will secure KCP's entry into the U.S. market, as this young listed VC company has branch offices in Boston, Silicon Valley as well as in Honk Kong and other cities. It also has a clearly structured, promising investment portfolio, currently comprising of six companies in the software and internet industries."

KCP is expected to issue up to 700,000 shares form its authorized capital in order to complete the transaction on the basis of a share exchange. MVM's management would undertake to hold their KCP shares for an extended period and to maintain association with the company for the long term. The specific terms of the transaction are currently being negotiated and both companies hope to sign a definitive agreement in the near future.

The proposed transaction would be at arms-length and is subject to obtaining all required regulatory body and shareholder approvals. MVM has formed a special committee of the Board of Directors to assess the fairness of the proposed transaction from a financial point of view to the shareholders of MVM and to provide a recommendation to the Board in this regard.

Martlet Venture Management is an international catalyst organization, which assists client partners by providing them with operation capital and management expertise to position them for successful initial public offerings or strategic merger "events". Martlet's partners have operational experience in areas such as strategic and product marketing, sales management, and financial planning and control. Additionally, Martlet can provide access to global indirect channels to rapidly build international presence.

Martlet's shares are traded on the Canadian Venture Exchange under the symbol (MVM).

The Canadian Venture Exchange has neither approved nor disapproved of the information contained herein.