Mr' Patrick J' Keating General Manager IS Venture Capital Turkey

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Mr. Patrick J. KeatingGeneral ManagerIS
Venture CapitalTurkey
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Mr. Patrick J. Keating

• Former Managing Director, Strateji Securities,
  Istanbul
• Banking Experience Morgan Stanley Dean
  Witter Merrill Lynch Hambrecht Quist
  Investment Banking

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Venture Capital Industry Turkey

• April 2004

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Institutional Venture Capital Industry
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Traditional Venture Capital Business Model
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Non-traditional Venture Capital Business Model
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Venture Capital Industry Investment Stages
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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

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U.S. Venture Capital Average Returns, 2000
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One of the best U.S. VCs results
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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

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Probability of Success
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Turkish Venture Capital Industry
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Turkey Institutional Venture Capital Companies

• Venture Capital Investments Trusts (VCIT)
• - Vakif Venture Capital Investment Trust
• - Is Venture Capital Investment Trust
• GP/LP Venture Capital
• - AIG Blue Voyage Fund
• - Turkven Partners

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Is Venture Capital

• Is 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 Is Kuleleri Kule2 Floor8
• 4. Levent 34330, Istanbul
• website www.isrisk.com.tr
• Phones 90 212 325 17 44
• Fax [phone]

Employee Breakdown 1 General Manager 1
AGM/Investment Manager 2 FinanceAccounting 4
Investment Analysts 1 Driver 1 Secretary
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Is Risk Shareholders
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Where are We Investing?
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Turkey

• Geographical Profile
• Total 780,580 sq km
• Land 770,760 sq km
• Water 9,820 sq km
• (Slightly larger than Texas)

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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

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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

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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.

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Turkey Enterprise DefinitionsSmall-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.

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SME Growth Factors
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The Opportunity The Capital GapU.S.500,000
3.0 Million
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Is Risk Portfolio
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Fourth Investment Nevotek Software
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Microelectronics Value Chain
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Why Nevotek?

• Strong Management
• Demonstrated Product Demand and Differentiated
  Technology
• Large Fast-Growing Domestic and Global Market
• Scalable Business Model
• Predictable Exit

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Mr. Patrick J. KeatingGeneral ManagerIS
Venture CapitalTurkey