PRIVEQ Capital Funds

PRIVEQ Capital Funds’ portfolio company Frantic Films picks Red Apple

TORONTO, CANADA - PRIVEQ Capital Funds (“PRIVEQ”) is pleased to announce that one of its portfolio
companies, Frantic Films Corporation (“Frantic Films”), has acquired Red Apple Entertainment Corporation (“Red
Apple”). Red Apple is one of Canada’s best known producers of factual live action television content.

Based in Toronto, Red Apple has been delivering programming since 2000 and has 175 hours of production in its
library. Red Apple is best known for its Gemini Award-winning series (Chef School and Opening Soon) and
documentaries (Gamer Revolution) for leading Canadian broadcasters.

The acquisition of Red Apple is a significant step towards Frantic Films’ growth objectives and strengthens its
management team and creative talent. It also provides further diversification to Frantic Films’ customer base. Both
PRIVEQ and Frantic Films are very pleased with the acquisition of Red Apple and are excited about the continued
organic growth and consolidation opportunities for Frantic Films.

About Frantic Films Corporation

Frantic Films is a producer of live action television and commercial content. Frantic Films has built a tremendous
industry presence creating award-winning, intelligent, engaging and innovative programming for television and film,
as well as producing world-class commercials for local, national and international markets.
In addition to industry nominations and awards for the quality and creativity of its products and services, Frantic
Films has won numerous corporate awards for its leadership and overall financial performance.

FFor more information about Frantic Films Corporation please visit www.franticfilms.com.

About PRIVEQ Capital Funds

Founded in 1994, PRIVEQ manages several private equity portfolios with assets of $85 million. In April 2006, PRIVEQ completed the final closing of PRIVEQ III Limited Partnership, the firm's third private equity fund. Led by BDC Venture Capital, Teachers' Private Capital and Export Development Canada, total committed capital for PRIVEQ III Limited Partnership is $57 million. PRIVEQ provides tailor-made equity solutions to profitable and growing companies through a highly expedited investment approach coupled with real value-added assistance post-investment. PRIVEQ invests initial equity capital of $3 - $7 million for expansion capital purposes as well as to facilitate management buy-outs and buy-ins for profitable niche service, distribution, and manufacturing companies located within 5 hours of Toronto, Canada.

Contact Information

PRIVEQ Capital Funds
1500 Don Mills Road, Suite 711
Toronto, Ontario, M3B 3K4

Tel: (416) 447-3330
Fax: (416) 447-3331

Brad Ashley, Managing Partner ______________ Ext. 222
Kevin Melnyk, Partner ______________________Ext. 230
Lee Grunberg, Vice President ________________Ext. 232
Jennifer Wang, Associate ___________________Ext. 233

For additional information about PRIVEQ Capital Funds, please visit www.priveq.ca.