TORONTO, June 8, 2007 – VenGrowth Private Equity Partners Inc. and its affiliates ("VenGrowth"), congratulate investee company Espial Group Inc. (“Espial”) following the successful completion of an initial public offering (“IPO”) on the Toronto Stock Exchange. Espial raised gross proceeds of approximately $25 million through the IPO.

VenGrowth is a major venture investor in Espial, investing in the Ottawa-based application software company through The VenGrowth II Investment Fund Inc. and two VenGrowth limited partnerships since August 2001.

Espial develops and markets modular Internet Protocol Television (“IPTV”) client and server middleware and applications that enable communications service providers to rapidly deploy IPTV services to their subscribers. Presently at an early stage of development, the IPTV industry is expected to grow at a compound annual rate of approximately 92% between 2006 and 2011.  

“Since VenGrowth’s initial investment in 2001, Espial has become a leading vendor in IPTV, with significant revenue growth from that sector over the past three years,” said Peter Seeligsohn, VenGrowth General Partner. “With over 50 customers and partners established worldwide, a public listing was the natural next step for this company and it’s excellent to see a renewed investment appetite for world-class Canadian technology companies such as Espial.”

“VenGrowth has been a key strategic partner for Espial as we have successfully established a leadership position in the rapidly expanding IPTV market in recent years,” said Jaison Dolvane, Espial Co-Founder and CEO.

About VenGrowth
With over $1 billion in assets under management, VenGrowth is Canada's largest private equity and venture capital firm managing both retail and institutional assets. Since 1982, VenGrowth's accomplished private equity managers have invested over $1.1 billion in over 180 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 180,000 individual investors and leading pension funds, banks, insurance companies and family foundations. Portfolio companies benefit from VenGrowth's substantial experience, resources, and hands-on investment style. VenGrowth's offices are located in Toronto (Corporate Headquarters) and Ottawa. For more information, please visit www.vengrowth.com.

About Espial
Espial provides open, modular, customizable, and carrier-grade IPTV middleware and applications that are deployed with communications and entertainment service providers around the world. Espial's Evo(R) IPTV Service Platform, which can be purchased as separate components or as part of a pre-integrated client-server solution, includes Evo(R) Client, Evo(R) Server, Evo Future-Proof Framework(TM) (FPF), Evo SkinTones(TM) and applications such as Electronic Program Guide, Video on Demand, Interactive Content Portal, Games, and Evo Browser.

Media Inquiries:
Angus Fisher
Manager, Media &Communications
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com