Qwest Emerging Biotech to merge into BC Advantage Funds

Vancouver, May 11, 2004 - BC Advantage Funds (“Advantage”) is pleased to announce that its Board of Directors has approved the merger of Advantage and Qwest Emerging Biotech (VCC) Fund (“Qwest”).

The Qwest portfolio is made up of six BC life science companies. In anticipation of the merger the Qwest portfolio was assessed by an independent Chartered Business Valuator and found to have a value of $3.75 million thereby providing Qwest investors with an internal rate of return on monies invested of 49.9% per annum. The Chartered Business Valuator further concluded that $10 of Qwest shares would currently have a Net Asset Value of $20.44, representing an aggregate return to Qwest investors of 104%, without incorporating the 30% tax credit; or 192%, incorporating the 30% tax credit.

Jim Heppell, the President and Life Sciences Fund Manager of Advantage, is the co-founder, CEO, President and Investment Committee Chair of Qwest. Mentor Capital, the Manager of Advantage, is also the Manager of Qwest.

“Qwest was our first fund and its portfolio is the template upon which the Advantage portfolio is being built,” said Jim Heppell. “We are very pleased with the returns we have been able to deliver to the Qwest investors over the last three years, and we believe that the merger with Advantage will provide them with excellent liquidity when they reach their redemption period.”

Frank Holler, CEO of Advantage stated “We are pleased to welcome the Qwest investors and portfolio companies to Advantage. Jim and his team at Qwest have built a strong portfolio of life science companies and we believe this portfolio will complement nicely the portfolio we are building at Advantage.”

Qwest was the lead investor in a $1.7 million seed round into Aspreva Pharmaceuticals (“Aspreva”) of Victoria, which closed on January 16, 2003. After meeting with a number of pharmaceutical companies, Qwest believed in Aspreva’s business model of partnering with pharmaceutical companies to maximize the value of their under-utilized assets. As lead investor, Qwest placed one of its directors on the Board of Aspreva to assist in its development.

Qwest’s investment into Aspreva was done at a pre-money valuation of US $4 million. Aspreva executed on its business model and entered into a significant partnership with a large pharmaceutical company. Aspreva recently completed a US$57 million private equity financing, at a pre-money valuation of US$65 million. This financing, one of the largest series “A” financings ever reported in North America, was carried out by several prominent US life science venture funds. Aspreva intends to use the proceeds of the financing to hire up to 110 people and to build out the company in Victoria.

About Advantage

Advantage is an early-stage life sciences and technology fund that offers anyone in BC the opportunity to participate in returns from some of our Province's most promising young technology and life science companies and to receive a 30% refundable tax credit from the BC Government.

Advantage was co-founded by Dr. Don Rix, Chairman of the Board; Frank Holler, CEO and Chairman of the Investment Committee; Jim Heppell, President and Life Sciences Fund Manager; Dr. Basil Peters, Technology Fund Manager; and David Raffa, COO and Investment Manager.

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