1. Business Development Bank of Canada TechExpo 2004

2. Page 2 Business Development Bank of Canada Who we are and What we do Consulting Services Financial Services Investment Services –Venture Capital –Subordinate Financing Where to find us

3. Page 3 Who we are Canada’s small business bank since 1944 Self-sustaining crown corporation – profitable! Play complementary role to all major commercial lenders Over $8 Billion asset base – over $2 Billion in annual lending 22,000 clients; Customer Satisfaction over 90% Approx. 80 branches

4. Page 4 What we do Financial Services Venture Capital Subordinate Financing Consulting Group

5. Page 5 BDC Consulting Fully-customized value-added service offerings –Productivity, human resource management, quality, growth, export, e-business BDC is a leading national provider of ISO (quality) consulting market Fiscal 2003 achievements –Repeat business reached 46% –Completed 3,625 projects –Total revenues of $18.2 million 5

6. Page 6 Financial Services Traditional term lending 95% of the Bank’s overall lending activity A number of different financial solutions but one common theme – money for viable businesses – NO GRANTS! Two products to look at: –Innovation –Co-Vision

7. Page 7 Innovation Financing To support Canadian Business that have opportunity for growth or process improvement but lack funds including MBO situations A working capital loan with lower security requirements than term loans Eligibility all BDC eligible clients Loans up to $250K Security against fixed assets not always required Pricing ranges from 3.5 over our base rate and up based on company strength

8. Page 8 Co-Vision To promote the creation of new viable businesses New businesses –A business being established for the first time –An established business that has not registered 12 consecutive months of sales Business Plan Repayment over 6 years (includes 1 yr deferred payment) >$50,000 – secured by fixed assets <$50,000 – personal guarantee

9. Page 9 Investment Group: Venture Capital One of largest VC groups in Canada –Established in 1975 –Over $400M in Assets Invests in all stages of company lifecycles (seed through expansion Focuses on: –Technology-based business –-High growth potential –Positioned to be a dominant player in their market

10. Page 10 Investment Group: Subordinate Financing Mezzanine, Quasi-Equity, sub-debt, junior debt, etc… many different names but same common principal….. Hybrid of debt and equity…depending on how it’s structured. Subordinate refers to the fact that we are behind senior lenders.

11. Page 11 Sub-Debt (cont’d) Provide clients with a flexible financing tool that has equity type properties without ownership dilution Appropriate financing of growth opportunities can lead to greater profitability and viability Looked on favourably by financial partners – often viewed as equity for covenant calculations Competitive advantage in the market place. Look at deal sizes ranging from $250k - $5.0M first round Partner with all other players Not only high-tech focused

12. Page 12 Sub-Debt - Applications Sub-debt can be used in three different applications… 1.Growth Capital 2.Management buyouts/buy-ins 3.Mergers and acquisitions

13. Page 13 Conclusion Our ONLY focus is growing and assisting Canadian Businesses BDC tries to fill market gaps to meet the needs of Canadian Businesses

14. Page 14 Where to find us www.bdc.ca 1-888-INFO-BDC Visit the Branch at 55 Metcalfe