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OTTAWA, Ontario/SAN JOSE, California -- BitFlash Inc., an emerging leader in Internet software development which is bringing 'smart graphics' to wireless devices and the Internet, today announced that it has raised $10.5 million CDN in venture financing. The funding is comprised of $7.5 million CDN in equity investment from Skypoint Telecom Fund, Working Ventures Canadian Fund, and the CBC Pension Fund; and a venture debt investment by MM Venture Partners of $3 million CDN. Other investors include Antoine Paquin, President and CEO of Philsar Semiconductor, and Stephan Opalski, Partner at Skypoint Capital Corp. The funding will be used to grow the company's research and development, sales and marketing organizations, and to productize the company's cross-platform graphics technologies.

"This development puts us one step closer to achieving our goal - enabling rich graphics to be published to wireless devices and all Internet platforms." said Frederic Charpentier, President and Chief Technology Officer, BitFlash. "This financing will enable us to invest heavily in research and development - areas that are vital in maintaining our competitive edge and to bring our current technology to market."

BitFlash has developed an advanced, cross-platform graphical rendition engine that will allow electronic content publishers, e-commerce service providers, and users of the Internet to publish and view all types of graphics on all wireless and desktop Internet-enabled platforms. The first commercial implementation of this core technology will be in the form of the BitFlash Wireless Graphics Server, scheduled for release in Q1, 2001. The company also plans beta releases prior to the final release. The product will address the emerging demand for content publishing tools specifically geared to Internet-ready wireless devices, which are predicted to reach 100 million units in use by 2003.

"The company is in a position to fundamentally change the way wireless device users experience the Internet," said Leo Lax, CEO and founder of Skypoint Capital Corp. "We have had a longstanding and strong relationship with BitFlash and have been excited to watch the company's progress."

"We were immediately impressed by the depth of the BitFlash solution in rendering pixel-accurate images across multi-platforms," said Minhas Mohamed, managing partner of MM Venture Partners. "They have focused on a sector that best showcases some of the top attributes of their technology - specifically the ability to render images in memory and bandwidth constrained devices, such as today's cell phones. We believe BitFlash is a true pioneer in enabling tomorrow's wireless Internet devices and look forward to working with this strong management team."

Rich, desktop-level graphics have not been available on wireless platforms to date, because of bandwidth, processor and memory limitations in the wireless environment. BitFlash's engine makes rich, scalable, interactive wireless graphics a reality due to its extremely optimized, cross-platform, operating system-independent features, and to its small memory footprint requirements.

"We are very impressed with the technical capabilities of the team that Frederic has assembled," said Tim Patterson, Vice President, Investments, Working Ventures. "We are looking forward to the release of BitFlash's server product, scheduled for Q1, 2001."

"The prospects for BitFlash's technology are tremendous," said [Contact & title], CBC Pension Fund. "This company will open up the wireless device market to experience a richer and more substantial Internet viewing experience, and enable entirely new wireless applications which will help drive the entire wireless market."

BitFlash, which had four employees in June of last year, has grown to 35 people and is expecting to more than double that number by the end of the year.

About BitFlash Inc.
BitFlash is comprised of world-class experts in low-level graphics, with in-depth graphics and Java market knowledge. BitFlash's advanced Java-based graphics engine will bring smart graphics to wireless devices and the Internet. The company is headquartered in Gloucester, Canada, with sales operations in San Jose, California. For more information, please visit the company web page at

About CBC Pension Fund
[Information to be provided.]

About MM Venture Partners
MM Venture Partners is the General Partner of the $150 million GATX/MM Venture Finance Partnership. This privately held venture capital fund focuses exclusively on public and private technology companies in Canada. MM Venture Partners has focused specifically on a niche in the capital markets by providing venture debt financing to Canadian information technology and biotechnology companies. The fund's partner, San Francisco based GATX Capital Corp., is a global diversified investor. For more information visit us online at

About Skypoint Capital Corp.
Skypoint Capital Corporation is a venture capital management firm that manages the Skypoint Telecom Fund, which focuses on telecommunications and information technology industries. The fund provides equity capital to new or growing businesses with the potential to become major enterprises. Our firm seeks entrepreneurs with the vision, ability and courage to operate in the always challenging, often elusive quest for marketable technology. The fund's capital is provided by institutions who believe in us, trust us and expect to achieve significant returns on their investments. We are fortunate to have many friends in the investment business who have capital and enjoy partnering with us in worthwhile venture investments. For more information, visit us online at

About Working Ventures
Working Ventures Canadian Fund is sponsored by the Canadian Federation of Labour and is one of Canada's largest national venture capital funds. Since inception, Working Ventures has invested over $650 million in 205 small and medium-sized businesses across Canada. The Fund has 115,000 shareholders and over $750 million in assets under management. Head Office is in Toronto and the Fund has investment offices in Saskatoon, Saskatchewan and Halifax, Nova Scotia.

For more information, please contact:

Nicholas Desbarats
BitFlash Inc.
Tel: 613-745-3232, ext. 106

Marisa Marzano
High Road Communications
Tel: 613-236-0909

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