PHLburg Technologies, Inc.

PHLburg Technologies, Mirantis and Landbridge Capital Set Up a Venture Foundation

March 10, 2005

The new venture foundation, a joint project of PHLburg Technologies, Mirantis and Landbridge Capital, will promote filling up the lacunas on the Russian venture capital market. It is no secret that in today’s Russia it is hard to find an investor for a technology project at an early stage of its development. To date almost all the hi-tech venture capital has been invested in a limited number of companies, which had achieved a certain degree of success with their technologies at a fairly advanced stage (e.g. Cybico, RBC, IBS, Ru-Net Holdings and some others).

The Venture Foundation announced by PHLburg Technologies will provide the exact amount of capital to enable two of the three start-up companies to grow from scratch to the level of a medium-sized business capable of attraction direct investments.

According to the Venture Foundation organizers, PHLburg President Neil B. Godick continues his meetings with major US and European investors. In particular he has made presentations at Stanford within the framework of the US-Russia technology symposium, in Milan at a meeting with the Italian business community, and in Detroit at a meeting with Ford Company specialists. The basic theme of the presentations was the prospects of investing in Russian technology business. According to Mr. Godick, many major American and European companies have already shown interest in the activities of PHLburg and in particular in the Venture Foundation project. So far, the list of potential investors has not been disclosed, but the question of partnership will be considered within the next few months.

The Venture Foundation is prepared to start its work in Russia immediately. At present it has US$1.5 mln and connections with major Western investors at its disposal. The only obstacle is the lack of information on promising projects.

The difficulties with the information search for technology projects that require financing are rooted in the underdevelopment of Russia’s innovation infrastructure. Setting up science and engineering parks and technology transfer centers will help solve these problems.

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