Swiss Private Equity Firm VenGrow Corporate Finance AG, launches Matterhorn Fund 2006 ans selects contraco´s M&A Group as advisor

Launch of $100 Million Fund is VenGrow’s Response to the Rapid Growth of the Buyout Market for Small and Mid-sized Swiss Companies in the Precision Mechanical, Electrical and Engineering industries (MEM industries) as well Financial Services Sector. These Swiss industries are renowned worldwide for their efficiency, innovation and technical leadership.

ZURICH, SWITZERLAND and BOSTON, MA (May 9, 2006) – VenGrow Corporate Finance, AG, a leader in Swiss private equity, structured finance and equity research, announced today it will proceed with the formation of a Swiss-based investment fund specifically designed for international investors looking to invest in Switzerland’s buyout and business succession market which has significantly expanded due to recent tax rulings and regulatory changes in Switzerland’s finance sector. VenGrow seeks to raise $100 million to support initial deal flow. To support a global participation in the fund’s limited partnership, VenGrow named Europe-based Contraco as principle advisor.

The Matterhorn Fund 06 will focus on established small and medium-sized high growth companies in Switzerland’s core growth sectors of precision mechanical, electrical and engineering industries (MEM industries) as well as financial services. VenGrow pursues a proven Buy-and-Build strategy by setting-up sector clusters to optimize business potential and growth. VenGrow launched the Matterhorn Fund 06 based upon the active interest of investors in its European Buyout Fund I. The structure of the new fund will allow for limited partner participation from global markets and will offer a reduced minimum participation requirement due to broad-based private investor desires to invest within a Swiss private equity fund. VenGrow is one of only a few licensed private equity fund General Partners in Switzerland.

“We believe there are over 700 small to mid-sized target companies in Switzerland impacted per year by recent banking changes which effect their ability to engage in business succession transactions and structured finance solutions with the traditional Swiss banking system, and offer our new fund a deal flow not seen in most private equity markets,” said Andreas Buenter, VenGrow’s Managing Partner & Founder.  “Contraco offers our fund’s global limited partners a single-source partner possessing the unique cultural skills required to support a fund launch in Switzerland, experience in growing and improving service and technology-based companies, as well as having access to capital markets throughout the world.”

“VenGrow’s insight into the shift of transaction capital from traditional Swiss banks towards the few private equity funds operating in Switzerland reflects their role as a market leader,” Jonathan Holley, Contraco’s Executive Vice President of M&A Services, said in Zurich today.  “The outside investor views Switzerland as a country with one of the most advanced financial services markets in the world.  Whereas this is, indeed, true for commercial and private banking, the private equity buyout sector is just now gathering momentum.  We are excited to be VenGrow’s partner at this moment in the Swiss market”.

The Matterhorn Fund 06 will open May 15, 2006 for prospective investors.

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South Korea´s HANWHA Venture Capitol Corp. announces formation of Korea Global Investors Fund and selects emerging market specialist CONTRACO as advisor

Launch of $100 Million Private Equity Fund Focused on South Korean Next Generation Information Technology, Biotechnology, Manufacturing, and Consumer Electronics Industries is the Largest South Korean Private Equity Initiative Targeted at International Investors.

SEOUL, KOREA and BOSTON, MA (Feb. 21, 2006) - Hanwha VC, the venture capital arm of South Korea’s financial services and manufacturing conglomerate Hanwha Group, announced today it will proceed with the formation of a new investment fund specifically designed for international investors looking to invest in South Korea, and named Europe-based Contraco as principle advisor.

The Hanwha Korea Global Investors Fund will focus on early-to-mezzanine stage funding of high growth companies in South Korea’s rapidly expanding next generation information technology, biotechnology, manufacturing, and consumer electronics industry segments. Unlike most South Korean private equity funds which have traditionally raised capital from within South Korea due to regulatory guidelines in the past, Hanwha’s new Fund is aimed at taking advantage of South Korea’s recent encouragement of private equity funds to include international investors. The selection of Contraco, supported by its regional operating companies Contraco Asia and Contraco USA, reflects Hanwha’s goal of securing fund participation from European, North American, Latin American and Asian investors.

“The aggressive growth and high returns on investments being achieved in the private equity market in South Korea has generated significant interest from the international investment community, and we believe that inclusion of these investors will strengthen portfolio company growth, diversity, and profitability,” said H. J. Park, Hanwha VC’s Vice President of Investments. “We believe Contraco’s presence in and commitment to the South Korean market allows potential global investors in the new Fund to gain a more complete understanding of investing and doing business in South Korea given Contraco’s current work with Korean customers in the new fund’s target investment sectors.”

A feature of the new fund which is new to South Korean private equity will be the allocation of a portion of the fund to support joint ventures of South Korean companies outside of South Korea. South Korea has been the showcase of joint ventures in the consumer electronics sector, notably in flat panel displays and mobile phones. This feature will allow the fund to participate in pan-Asian expansion of portfolio companies.

“We are honored that Hanwha VC sees Contraco’s core business of helping companies expand globally is as important, if not more so, to the investment community than the routine service of raising capital,” said Jonathan Holley, Contraco’s Executive Vice President of Professional Services. “It is Contraco’s goal not only to successfully assist Hanwha in launching its new fund, but to improve the understanding of the amazing market growth being experienced in South Korea. The technology and manufacturing innovation taking place here rivals Silicon Valley - China-centric investors are missing a more mature market with equivalent returns on capital”.

The Korea Global Investors Fund will open March 1, 2006 for prospective investors.

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Contacts:

Hanwha VC Corp
Seok-Won “Steven” Yoon 
Phone: +82 2 568 4982 (331)  

Contraco USA
Private Equity Services
Phone: +1 239 390 3170
Email: koreafund@contraco.net