Minister Martin Launches €70m Bank of Ireland Kernel Capital Partners Fund II, based in Cork

It is the first fund launched outside of Dublin under Enterprise Ireland’s €175m Seed and Venture Capital Programme

Minister for Enterprise Trade and Employment Micheál Martin T.D., today (Thursday 22^nd November 2007) announced the establishment of the €70m Bank of Ireland Kernel Capital Partners Fund II, managed by Kernel Capital Partners and bringing their investment funds to €110m. It is first fund to be established outside of Dublin under Enterprise Ireland's €175m Seed and Venture Capital Scheme 2007-2012. This new fund comprises a €20m investment from Enterprise Ireland, €20m from Bank of Ireland and a further €30m investment from private sector investors.

Making the announcement the Minister said: “I am delighted to announce the creation of the €70m Bank of Ireland Kernel Capital Partners Fund II. The fund is targeted at dynamic Irish companies at all growth stages, across a broad range of industry sectors. I would like to congratulate Kernel Capital Partners, Bank of Ireland, Enterprise Ireland and the individual investors who contributed significant finance and resources in making this new fund a reality”.

Commenting on the announcement Frank Ryan, CEO Enterprise Ireland said: “I am particularly pleased to welcome this fund and the significant private sector investment involved in it. Furthermore I would like to acknowledge Bank of Ireland’s continuing commitment to the venture capital sector.

Commenting on the announcement Niall Olden, Founder and Managing Director of Kernel Capital Partners said: “What makes Kernel Capital Partners different is our streamlined approach to investment appraisal, speed of decision and the experience and guidance that our team brings to our investee companies. We are pleased that Bank of Ireland, Enterprise Ireland and our private sector partners, who all invested in our previous funds, have substantially increased their commitment to this new fund.”

Commenting on Bank of Ireland’s involvement in the fund, Damian Young, Head of Small Business Segments said: “This latest investment from Bank of Ireland demonstrates our commitment to investing in innovative business ventures. We are particularly pleased to increase our investment with Kernel Capital Partners, as this rapidly expanding company provides a mechanism for new and growing businesses to secure additional financing.”

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For Further Information Contact:

Jerry O’Connor, Press Advisor, Department of Enterprise, Trade and Employment 01 6312200

Sarah O'Callaghan, Press Officer, Enterprise Ireland – 01 8082000

Notes to Editors

€70m Bank of Ireland Kernel Capital Partners Fund II

The funds have been sourced from Bank of Ireland (€20m), Enterprise Ireland (€20m) and private investors (€30m), Tom Jones, Ralph Parkes and Michael Parkes. The amount invested per company is expected to be in the range of €2m - €10m (smaller amounts available where appropriate and larger amounts available in syndication). For more details on the fund see: http://www.kernelcapital.ie

Kernel Capital Partners

Kernel Capital Partners is one of Ireland’s largest and most active venture capital firms. The €70m Bank of Ireland Kernel Capital Partners Fund II has confirmed Kernel Capital Partners as one of the largest venture capital firms in the country. The firm has invested across a wide range of industry sectors throughout Ireland. Technology investments include, Cork based Farran Technology (Sold), and MP Stor, Clare based Chip Sensors & Dublin based Yuroe Broadband (T/A Smart Telecom). Life Science investments include Limerick based Stokes Bio and Dublin based Merrion Pharmaceuticals while more general investments include Dublin based Therapie Group and Cork based Mini Storage. In addition to the above funds Kernel Capital Partners have been engaged to monitor the investment portfolio of Bank of Ireland Venture Capital Ltd.

About Bank of Ireland Business Banking

Bank of Ireland Business Banking offers a business start-up package, with specialist propositions for the franchising, intermediary, food and beverage sectors, comprehensive business finance options and access to an award winning Business On Line internet service. Bank Of Ireland also provide a switching pack to facilitate business customers switching business current accounts. Services are delivered through a network of 85 Senior Business Managers, 175 Business Managers, 270 Branch Managers and a dedicated Enterprise Support Unit committed to funding Start-Ups and developing SMEs. Bank of Ireland also provides a Business Adviser based in every branch nationwide.