Mr. Patrick J. KeatingMr. Patrick J. Keating

General ManagerGeneral Manager

IS Venture CapitalIS Venture Capital

TurkeyTurkey

• Former Managing Director, Strateji Securities, Istanbul

• Banking Experience: Morgan Stanley Dean Witter Merrill Lynch Hambrecht & Quist Investment Banking

Mr. Patrick J. KeatingMr. Patrick J. Keating

Venture Capital Industry: Turkey

April 2004

Institutional Venture Capital Industry

Traditional Venture Capital Business Model

Non-traditional Venture Capital Business Model

Venture Capital Industry: Investment Stages

Results of Venture Capital Investing in the U.S. Technology Industry: 1970 - 2000

Three Decades of Venture Capital Investment Yields 7.6 Million Jobs and $1.3 Trillion in Revenue: Research Finds That $36K of VC Investment Creates a US Job

U.S. Venture Capital Average Returns, 2000

One of the best U.S. VC’s results…

Matrixs’ best bet…

It paid U.S.$.20 cents per share for optical networking company Sycamore Networks Inc. in 1998 and sold it in 2000 at U.S.$107.00 dollars per share, for a gain of 53,400%

Probability of Success

Turkish Venture Capital Industry

Turkey: Institutional Venture Capital Companies

Venture Capital Investments Trusts (VCIT):

- Vakif Venture Capital Investment Trust

- İş Venture Capital Investment Trust

GP/LP Venture Capital:

- AIG Blue Voyage Fund

- Turkven Partners

İş Venture Capital

İş Venture Capital was established in October 2000, incorporated in Turkey as a joint stock company with U.S.$30.0 million in paid-in capital.

Address : İş Kuleleri Kule:2 Floor:8 4. Levent 34330, Istanbul

website : www.isrisk.com.trPhones : +90 212 325 17 44Fax : +90 212 270 58 08

Employee BreakdownEmployee Breakdown

1 General Manager

1 AGM/Investment Manager

2 Finance&Accounting

4 Investment Analysts

1 Driver

1 Secretary

İş Risk Shareholders

Where are We Investing?

Turkey

Geographical Profile

Total: 780,580 sq km

Land: 770,760 sq km

Water: 9,820 sq km

(Slightly larger than Texas)

Turkey: People

Population: 68,106,469

Age Structure:

0-14 years: 27.2% (male 9,422,242; female 9,082,840) 15-64 years: 66.4% (male 22,978,251; female 22,243,477) 65 years and over: 6.4% (male 2,013,926; female 2,368,733) (2003 est.)

Average Age:

Male: 26.7

Female: 27

Total: 26.8

Turkey: Educational System(1999-2000 School Year)

Levels of Education Number of Number of Number of

Schools Students Teachers

Preschool 9,992 251,596 15,596

Primary School 43,324 10,053,127 324,924

Secondary School 6,168 2,444,407 143,469

General High Schools 2,663 1,506,379 70,249

Voc. & Tech. High Schools 3,505 938,028 73,220

University: Undergraduate 78 1,330,241 N/A

University: Graduate N/A 74,838 N/A

Total 65,730 16,598,616 627,458

Turkish Economy: Profile

Employment:

Employed in Agriculture: 43%

Employed in Services: 40.3%

Employed in Industry: 16.7%

Cash Crops: Wheat, barley, cotton, sugar beets, sunflower, potato, tobacco, vegetables, dried fruits, fresh fruits, nuts, ornamentals.Natural Resources: Hydro-Electric power, chromium, copper, tungsten, phosphate, boron, barite, bentonite, manganese, zinc, magnesite, perlite, wolfram, asbestos, bauxite, lead, mercury, sulphur, emery, meerschaum, marble, aluminium, iron, coal, crude oil, forests, livestock. Agricultural Exports: Hazelnuts, pistachio, figs, dried raisins and apricot, pulses, tobacco, citrus, pome and stone fruits, melons, vegetables, tomato products, cut flowers, processed food, poultry meat, cereals, cotton, tea.Other Exports: Manufactured goods, minerals, textile, thread, ready-to-wear clothing, leather, machinery, mechanical appliances, furniture, carpets, rugs, automobiles, buses, pharmaceuticals, man-made filaments, glass and glass-ware products, articles of iron and steel and aluminum.Major Trading Partners: OECD, EU, Middle-East and CIS countries, Russian

Federation.

Turkey: Enterprise Turkey: Enterprise Definitions:Definitions:

Small-Scale Entreprises: less than 50 employeesMedium-Scale Entreprises: between 50 and 200 employeesLarge-Scale Entreprises: more than 200 employees

In Turkey, the number of small and medium-sized enterprises (SMEs) exceeds 200,000 and, increasingly, they are becoming the driving forces of its dynamic economy.

Small Scale Industry 98,4%

Large Scale Industry

0,5%

Medium Scale Industry

1,1%

SME Growth Factors

The Opportunity: The Capital “Gap”U.S.$500,000 – 3.0 Million

İş Risk Portfolio

Fourth Investment: Nevotek Software

Microelectronics Value Chain

Why Nevotek?

• Strong Management

• Demonstrated Product Demand and Differentiated Technology

• Large Fast-Growing Domestic and Global Market

• Scalable Business Model

• Predictable Exit

Mr. Patrick J. KeatingMr. Patrick J. Keating

General ManagerGeneral Manager

IS Venture CapitalIS Venture Capital

TurkeyTurkey