OVP Venture Partners and Yaletown Venture Partners Co-Lead U.S. $5M Round in GenoLogics

VANCOUVER, British Columbia & SEATTLE -- Series A Investment Is First Software Deal in Western Canada Closed In Last 5 Years by a Major Pacific Northwest U.S. Venture Capital Fund

GenoLogics Life Sciences Software Inc., a life sciences open bioinformatics platform company, today announced that it has completed a $5 million (U.S.) round of financing co-led by Seattle headquartered OVP Venture Partners and Vancouver, B.C. based Yaletown Venture Partners. OVP is the first venture firm in the Northwest U.S. to lead a Series A software investment in Western Canada in more than five years. Yaletown and OVP are also joined in the Series A round by the Working Opportunity Fund managed by GrowthWorks Capital Ltd. of Vancouver, B.C., one of Canada's largest venture capital managers.

GenoLogics is building a bioinformatics software platform for the life sciences global marketplace, initially specializing in the emerging high growth field of proteomics research. Proceeds of the investment will be used to expand the company's sales and marketing, product development and corporate initiatives.

"With the closing of our Series A funding, GenoLogics is in an ideal position to scale the company to satisfy the growing demand for our technology," said Michael Ball, CEO of GenoLogics. "We couldn't ask for a more experienced cross-border U.S.-Canadian investment team to help us build and position the company as a market leader."

Research studies show a data explosion is taking place due to the completion of the Human Genome Project and an increasing use and availability of new advanced technologies used to measure and analyze molecules in close to real time. As a result, many aspects of proteomics research (and specifically the study of proteins within cells), is focused around early disease detection including cancer.

Because of the wider use of these tool sets, scientists have begun to explore the interaction and regulation of proteins by being able to identify their presence and concentration under a variety of experimental conditions. According to the National Cancer Institute, this type of proteomics research could allow physicians to monitor patients' responses to molecularly targeted drugs and help them determine whether particular drugs are working effectively during treatment.

According to OVP and Yaletown, a typical single proteomics experiment, using just mass spectrometry, can generate more than 2 gigabytes of data in just a couple of hours. GrowthWorks adds that currently scientists and labs are straining to use existing software tools to manage these immense data sets.

"An integrated open software platform is needed to help the life sciences sector adjust to the explosion taking place in the market," said OVP General Partner Chad Waite. "GenoLogics is one of the very few players to develop an environment which will create an integration standard for all instruments in the market. The company also is our sixth Northwest investment in Bio-IT within the last 6 months."

GenoLogics has a number of installed customers, including the Genome BC Proteomics Centre, Oregon Health Sciences University and the University of Texas Medical Branch.

Steve Hnatiuk, partner at Yaletown Venture Partners added, "We were attracted to GenoLogics' ability to transform the way life sciences data is collected, managed, analyzed, and communicated in major research institutions and pharmaceutical and biotech companies -- capabilities their customers enthusiastically embrace. An opportunity of this magnitude attracts strong investment partners and we're thrilled to be joining forces with a Northwest venture firm the caliber of OVP to move this exciting software company forward."

GenoLogics was founded in 2002 and has until to date, been funded by founders including James DeGreef, family and angel investors. Company CEO, Ball, is an experienced software executive. From 1995 to 2000 Ball held senior marketing and sales positions at Creo Products Inc. in Vancouver and Western Europe while the company grew from $70 million to $750 million Canadian. Prior to Creo, Ball spent 7 years at DEC.

In conjunction with this financing, OVP general partner Waite, Yaletown partner Hnatiuk, and GrowthWork's investment manager Maria Pacella have joined GenoLogics' board of directors.

About GenoLogics

Headquartered in Victoria, B.C., GenoLogics develops bioinformatics solutions that help life science and pharmaceutical laboratories, specializing in the emerging field of proteomics research, to manage, integrate and analyze enormous volumes of scientific and lab data to advance health science research. As proteomics technologies progress from the research lab into commercial drug and clinical diagnostics applications, GenoLogics is continuing to develop additional functionality in its software to meet these unique needs. For more information, please go to www.genologics.com

Over its 22 year history as an early-stage venture firm, OVP has been funding industry leading start ups in the Pacific Northwest. In that period, OVP has invested in more than 80 companies and has driven 22 successful IPO's and 27 merger and acquisition events. The firm currently has $500 million in capital under management.

With a Pacific Northwest focused strategy and regional presence in Seattle and Portland, OVP seeks opportunities that are at the intersection points between the market's next big waves and those technology strengths native to the region. OVP's focus is on investments in the areas of the network edge and mobility, the corporate data center, imaging and the digital home, computational biology, and nanotechnology.

The OVP team includes six investing partners: Chad Waite, Lucinda Stewart and Dr. Rick LeFaivre in Seattle; Dave Chen, Gerry Langeler and John Hull in Portland. Partner Chad Waite serves on the Board of the National Venture Capital Association (NVCA).

OVP believes that as part of its regional venture role, it operates not just as an active investor in the best teams and companies, but also as an active member of the regional technology community and a catalyst in creating the region's next growth opportunities. For more information, please go to: www.ovp.com.

About Yaletown Venture Partners
Based in Vancouver, B.C., Yaletown Venture Partners is a venture capital firm that invests time, expertise, and money in seed and early-stage technology companies. Yaletown is a hard-working partner of choice for experienced technology entrepreneurs starting new companies in Western Canada and for investment partners seeking quality deal opportunities. Backed by several of Canada's largest institutional investors, Yaletown focuses on Western Canada's vibrant information technology and energy technology clusters. Yaletown's four investing partners bring a combined seventy years of early-stage company-building and transaction expertise to each portfolio company. For more information, visit www.yaletown.com.

About GrowthWorks

GrowthWorks refers to affiliates of GrowthWorks Ltd. GrowthWorks (www.growthworks.ca) is a recognized leader in venture capital fund management with proven experience in the raising and managing of capital. GrowthWorks(TM) managed funds, including the Working Opportunity Fund (EVCC) Ltd., GrowthWorks Canadian Fund, GrowthWorks Commercialization Fund, and GrowthWorks Atlantic Venture Fund, have a combined $700 million in assets. GrowthWorks has a team of skilled and knowledgeable investment professionals with a combined 200 years of experience. The investment team has a proven track record of identifying, analyzing, and structuring investments in emerging sectors. GrowthWorks is a registered trademark of GrowthWorks Capital Ltd.