FCC invests in Industrial Life Sciences fund

Regina, Saskatchewan, October 30, 2006 - Farm Credit Canada (FCC) is committing $50 million to create Canada's first Industrial Life Science fund, Avrio Ventures Limited Partnership.

Avrio Ventures has been established to capitalize on the convergence of Agricultural Science and Industrial technology that is occurring in three sectors; Industrial Bio-Products, Food Technology and Nutraceutical Ingredients.

“FCC is proud to be the lead investor in this new venture capital fund,” says John Ryan, FCC President and CEO. “Our commitment of $50 million is the first step towards building a new generation of Canadian companies that will help shape the future of Canada's bio-economy. Opportunities exist for these companies to build new markets, create new distribution channels and commercialize advances in science that will benefit many different types of Canadian producers. This new fund also firmly supports the Government of Canada's focus on agricultural science and innovation.” Avrio Ventures will have a national focus with offices in Calgary, Toronto and Montreal.

“This fund will help Canada reach its potential as a world leader in the production and processing of biomass for use in the creation of energy, functional foods and uses in human and animal healthcare,” says Jim Taylor, one of the founding partners of Avrio Ventures. “With this commitment, FCC is taking the lead in getting others to make long-term commitments to these emerging sectors.”

The general partnership of Avrio Ventures consists of Jim Taylor and Aki Georgacacos, who both played a significant role in the success of FCC Ventures, the venture capital division of FCC since 2002. Kirchner Investment Management Corporation (KIMC) is a corporate general partner. KIMC has a proven track record both as a business operator and a transactional expert in the venture capital business.

The founder and CEO of KIMC is Bud Kirchner, who brings over 35 years of entrepreneurial, operational, transactional and international experience. He was named Ernst & Young Entrepreneur of the Year in 1994 and the Quality Institute of Canada's Entrepreneur of the Year in 1995.

“Advances in these three sectors are occurring very quickly with several significant global drivers creating a very interesting opportunity,” says Kirchner. “Our team is excited about being a partner in the only fund like this in Canada. Our operational experience and ability to build global strategic networks will go a long way to helping build value for all investors.”

“The new fund's investment strategy is based on the success and knowledge gained from our venture capital experience since 2001,” says Ryan. “KIMC's deep operational experience and their history of building value for portfolio companies will serve the fund well. I expect the success of this fund will create new opportunities for Canada's bio-economy and will lead to increased venture capital funding for emerging companies in Canada.”

The fund targets growth-to-commercialization-stage businesses in three emerging sectors: Industrial Bio -Products, Food Technology and Nutraceutical Ingredients. End user applications include things like alternative energy, edible food packaging, functional foods and traditional food products with a longer shelf life.

FCC created FCC Ventures and first offered venture capital in 2002 as part of the Farm Credit Canada Act, enacted by Parliament in June 2001, to help address the changing and complex nature of agricultural businesses. FCC Ventures will continue as an active division within FCC pursuing other opportunities to support agriculture through venture capital investments.

FCC is Canada's largest provider of business and financial services to farms and agribusiness. Operating out of 100 offices located primarily in rural Canada, FCC employees are passionate about the business of agriculture. A healthy portfolio of $12 billion and 13 consecutive years of portfolio growth are a reflection of our customers' success.

KIMC provides venture capital and private equity investment management and advisory services, as well as participates as a General Partner in funds through its proprietary capital management group. Through the collective experience of its team, which is composed of operators, fund managers and transaction specialists, the right mix of individuals are assembled to achieve a client's and partner's specific investment objectives. Clients and partners include diversified, sector specific, regional and government managed investment funds and institutional investors. KIMC is a member of the Kirchner Private Capital Group family. For more information please see our website at www.kirchnerimc.com.

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For more information, please visit the following websites:
www.AvrioVentures.com
www.fcc-fac.ca
www.fccventures.ca

Or contact:

Chris Clemett (English)
Public Relations
Farm Credit Canada
306-780-7351

Mireille Bilodeau VongPhit (bilingual)
Public Relations
Farm Credit Canada
306-780-8630

Jim Taylor (bilingual)
Partner
Avrio Ventures
403-701-0079

Bud Kirchner
Founder and CEO
Kirchner Investment Management Corporation
403-215-5491