Private Equity Week Wire

WILLIAMSTOWN, MA — The managers of The
Berkshires Capital Investors, a venture capital firm based here with $21MM under
management, and Village Ventures, Inc. will collaborate to establish an early-stage
venture capital fund to invest in companies in the Capital Region of New York state.

BCI fund managers Russ Howard and Brad Svrluga said they would recruit an
Albany-based fund manager to help them manage the new fund, which has yet to be
named. Howard and Svrluga will remain based in their Williamstown, MA offices, where
they will continue to oversee BCI’s investments. They will also take very active leadership
roles in the operations of the Capital Region fund, traveling to the Albany area frequently.
The Albany fund is, like BCI, a Village Ventures affiliate.

MONTREAL – In the presence of Gilles Baril, Minister of State for the
Regions and Minister Industry and Commerce, Jacques Allard, Vice- chairman of
Innovatech’s Board of Directors, and Andree Corriveau, president and CEO, International
Financial Centre and other guests from the business community, Hubert Manseau,
president and CEO of Innovatech Grand Montreal, and Neal Hill, managing partner of
Venture Investment Management Company LLC (VIMAC), today announced a strategic
investment of $3 million US in Boston’s VIMAC Early Stage Fund L.P., a venture capital
company investing in start-up companies in the area of information technology and the
Internet.


OTTAWA — Solinet Systems, a developer of innovative solutions for
the next generation of core optical networks, today announced the successful completion
of a record breaking $93 million ($144M Cdn) round of venture financing. U.S. Venture
Partners (USVP) led this round, which ranks as Canada’s largest private equity infusion
into a telecommunications company, according to Macdonald and Associates of Toronto.
This brings the total venture capital raised by the company to $108 million ($167M Cdn) in
less than 12 months of operation.

This funding will allow Solinet to complete its product development, bringing to market
Solinet’s innovative core network solution. It will also allow Solinet to expand operations,
marketing and customer service capabilities.


SAN FRANCISCO — Rocket Network, the provider of the
industry standard global production network for audio professionals, today announced
receipt of $9.3 million from Cisco Systems, Vulcan Ventures and Weston Presidio in the
first close of a new round of investment.

Rocket Network has rapidly become the audio industry standard, reaching 95% of the
professional market through integration of Rocket technology into the products of leading
audio companies including Digidesign, Emagic, Euphonix, MOTU, and Steinberg. Both
Vulcan Ventures and Weston Presidio have previously invested in Rocket Network, and
have seats on the Company board.

ROCHESTER, NY — Element K, a leading provider of
corporate e-learning solutions for information technology and business skills training,
today announced the completion of an $18 million financing led by existing investor
Wasserstein & Co., LP.

This will enable Element K to advance its leadership position in the e-learning market
through continued development of innovative products, including a new instructional
design model, created to optimize integration of Element K’s born-on-the-Web e-learning
courses with classroom-based learning, and a state-of-the-art e-learning platform with
powerful learning management capabilities. It will also help the company to expand its
industry-leading content library and launch new strategic partnerships.

SUNNYVALE, CA — MetaEdge Corp., a leading
provider of business analytical applications, today announced it had received its second
major investment of $5 million to introduce its breakthrough C-Insight platform in the North
American market. The private placement was made by Pacific Wealth Consultant Ltd., a
wholly owned subsidiary of Hon Hai Precision Industry Co., Ltd., an international
manufacturer of computer, communication, and consumer electronics products.

NEW YORK — Rho Ventures today announced the final closing of Rho Ventures IV, L.P. with commitments of $435 million. The fund
will finance companies seeking seed through development stage funding in a broad range of industries including information technology, telecommunications and healthcare.
Rho Ventures IV marks the first time Rho Ventures has opened its funds to institutional investors including pension funds, banks and insurance companies. Rho Ventures IV’s
limited partners also include repeat investors from its prior three funds who are primarily wealthy families from both the US and Europe.

SAN DIEGO — Forward Ventures has announced the closing of Forward Ventures IV, a $256 million venture fund focused on life
sciences and health care.
With the closing of this fund, Forward becomes the largest life science venture fund headquartered in Southern California and focused exclusively on life sciences, including
biopharmaceuticals, medical devices and biotechnology.
Joining investors from Forward’s previous funds — Adveq; JAFCO Co., Ltd.; Portage Group Investors, LLC; and San Diego County Employees Retirement Association — are
new institutional investors Blue Dot Capital Pte. Ltd.; China Development Industrial Bank Inc.; Fairview Capital Partners; Henkel KgaA; Hunt Ventures; GIMV n.v.; Sofinov,
Societe Financiere D’Innovation Inc. (Montreal); and Tai Cheung Capital Limited. The management team of the new fund remains the same as in the previous fund, Forward
Ventures III: Stan Fleming; Ivor Royston, MD; and Jeff Sollender.

SYDNEY, AUSTRALIA — Redfern Photonics Pty Ltd, a world-leading developer and manufacturer of optical
telecommunications products, today announced it has completed its second major
external investment funding from a syndicate of internationally respected investors led by
Deutsche Bank’s private equity investment group, DB Capital Partners, that totalled over
A$54 million (US$28 million). GE Equity, Citicorp Equity Capital, Ericsson Deutsche
Technology Fund, the Australasian Technology Fund and Temasek Capital also
participated in the round. Additional funding may be raised in a second close of this
investment round should Redfern Photonics require additional expansion capital in the
coming months.

MIDDLETOWN, RI — KVH Industries (Nasdaq:KVHI) announced today the successful completion of its private equity financing with
the sale of 615,384 common shares priced at $6.50 per share to an institutional investor on Friday, May 25, 2001. This sale, valued at $4 million, had been previously approved
by KVH’s Board of Directors and shareholders at the company’s annual meeting and brings the total equity raised by the company since December 2000 to $19.5 million.
Needham & Company acted as placement agent for the financing. Proceeds of the placement will be used to finance the company’s Photonic Fiber and Mobile Broadband R&D
projects. KVH intends to register the shares by filing a Form S-3 during the second quarter ending June 30, 2001.

WALTHAM, MA — HubX, a global technology service
provider to the hospitality and travel industries, announces the second closing of its Series
A round of venture financing. To date, HubX has raised over $2.0 million in its initial round
of venture financing. The lead investors in the funding are Boston Capital Ventures and
Claflin Capital Management’s venture partnership, Black Diamond Fund, both located in
Boston, Massachusetts. The Series A round is expected to finance additional product
development as well as general operations through profitability.

NEWARK, CA InSonus Medical Inc. has completed a
$7 million round of private financing to complete the development of world’s smallest and
most inconspicuous hearing devices for the hearing impaired. The round was led by
Essex Woodlands Health Ventures, which also participated in the previous round. The financing was joined by US Bancorp/Piper Jaffray Ventures, also a major health care
investment firm.

For yesterday