Dear Prospective Investor,

The Early Stage Capital Expansion Fund has been established to provide investors with significant tax-exempt returns from a diversified investment portfolio in private companies across a range of industries. The Fund will seek to invest in Small to Medium-sized Enterprises (SMEs) requiring capital for the commercialisation or expansion of proven technology, products and/or services with domestic, global and/or niche market potential.

The Fund is targeting a tax-exempt return on each individual investment of 15%-plus per annum.

It is expected that a significant number of these investment opportunities will come through the Fund’s associations with Non Executive Management Pty Ltd (nem) and its national network of referrers, which includes accounting firms and business bankers.

As part of the Fund’s investment strategy, the founders of the General Partner have successfully received conditional registration of the Fund as an Early Stage Venture Capital Limited Partnership (ESVCLP). This program is jointly administered by the Australian Taxation Office (ATO) and Innovation Australia, an independent statutory body that oversees Federal Government innovation and venture capital programs through the Department of Innovation, Industry, Science and Research. The Fund will receive unconditional registration following the commitment of a minimum of $10m by investors, as required under the Venture Capital Act 2002.

We believe the Early Stage Capital Expansion Fund’s major investment advantage, is based upon the association with nem and the nem network, the support to be provided to investment companies, the potential significant investment returns it is capable of achieving over the medium to long term, the comparatively low fee structures associated with its management, and the tax-exempt status for investors.

In applying for an investment in Early Stage Capital Expansion Fund, please read the Information Memorandum and all Sections in full, in particular Sections 3, 11 and 18 in relation to investment risks, and confirm so on the enclosed Application Form.

I am pleased to be associated with the establishment and management of this fund, and look forward to participating with you as an investor and Chairman.

On behalf of the Board, I commend this Information Memorandum to you and look forward to welcoming you as a Limited Partner Investor in the Early Stage Capital Expansion Fund.

Yours Sincerely

Peter Vial
Chairman

31 May 2010