1. Presentation to Venture Association of New Jersey 3/16/04

2. Creates public/private partnerships to bridge financing gaps Effective financing resource for small businesses EDA helps attract & retain businesses

3. How the EDA assists businesses: Technical assistance Financing assistance Real Estate Development

4. Technology Programs Seed Capital Program Technology Funding Program Tax Transfer Certificate Program Springboard Fund

5. Eligibility: –Technology that exhibits strong likelihood of commercialization –Formal detailed business plan –Strong management team –Operate within emerging technology sector –In established business/incubator location –Have begun product testing –Able to raise capital from other sources New Jersey Seed Capital Program

6. Structure: Loans to businesses with established emerging technology that require capital to bring product to market Funding: Single loan or in tiered increments

7. Seed Capital Program FEATURES Source of early stage capital from $250,000 for W/C and $500,000 for F/A not to exceed $500,000 combined; up to 5 years Federal Discount Rate at approval with a floor of 3%. Flexible repayment of principal and interest BENEFITS Bridge the gap between equity and conventional debt Enables company to access full funding Improves cash flow with low cost financing

8. Technology Funding Program Projects of up to $5 Million – Partner with Bank 25% direct EDA participation up to maximum of $500,000 EDA guarantee up to 50% - Maximum of $1 million for Working Capital - Maximum of $2 million for Fixed Assets EDA interest rate is variable – based on Prime rate – currently at 3% or Fixed based on comparative treasury with a floor of 4%.

9. New Jersey Technology Fund Program - Eligibility Received venture capital, other investor financing and/or raising funds through an IPO/private placement Received or close to obtaining regulatory approval Licensing arrangements with/selling to established companies Historic financial statements showing limited cash flow/profitability Reasonable forecasts of profits/cash flow to reach key milestones Detailed business plan

10. Technology Business Tax Certificate Transfer Program Unused net operating loss (NOL) carryovers Unused research and development tax credits to corporate New Jersey taxpayers Allows new and expanding technology and biotechnology businesses to sell (for at least 75% value of benefits) their: Business must have less than 225 employees $40 million available annually

11. Technology Business Tax Certificate Transfer Program 2003 189 Participants $260,000 per company $40 million disbursed

13. Springboard Fund Features Investments in early stage NJ Tech. Bus. Recoverable grant between $50K - $250K Competitive process – selection of best tech start-ups with greatest chance of success Easy terms Benefits State sponsored support of technology at critical point of growth Repayment linked to bus. revenue up to 10 years Supports job creation and revenue generation for NJ in technology sector Unsecured and interest free

14. www.njeda.com