INNOVATION OHIO LOAN FUND OPEN FOR APPLICATIONS

FOR IMMEDIATE RELEASE
January 21, 2004

Columbus, OH -- State Development Director Bruce Johnson today announced that the Request for Loan (RFL) process is now open for the Innovation Ohio Loan Fund (IOF). The IOF is designed to provide financial assistance to companies that are developing projects that will generate new high-value jobs, increased tax revenues and a more competitive and robust presence in targeted industry sectors. Interested parties may apply for the first funding round through March 1, 2004. Projects will be selected on a competitive basis.

“The Innovation Ohio Loan Fund fills an identified gap in available financing, and targets established firms that have exhausted traditional sources of debt capital,” Director Johnson said. “I encourage all qualified businesses that are interested in IOF assistance to apply for these funds.”

The IOF was created as part of Governor Bob Taft’s Third Frontier Project to assist existing Ohio companies develop next generation products in industry sectors that include: advanced materials; instruments, controls and electronics; power and propulsion; biosciences; and information technology. The Fund has received an initial capitalization of $50 million and will eventually be a $100 million revolving loan fund.

The IOF can finance up to 75 percent of a projects allowable costs from $250,000 to a maximum of $5 million. Allowable innovation costs include but are not limited to: the cost of building acquisition, construction, renovation, enlarging or improving existing facilities; the acquisition and installation of equipment for eligible innovation projects; research and development; obtaining or creating any requisite software or computer hardware; product testing; and the protection of intellectual properties. The IOF will not provide funding to refinance existing debt obligations.

Applicants will submit RFL proposals to the Ohio Department of Development (ODOD), which will then conduct an administrative review of each proposal for completeness and forward the application to a third party, independent reviewer. The ODOD will conduct a financial feasibility review of the highest scoring projects and make funding recommendations to the Development Financing Advisory Council (DFAC). The DFAC will make funding recommendations to the Director of the Ohio Department of Development and the State Controlling Board for final approval.

To view the Innovation Ohio Loan Fund Request for Loan, visit www.thirdfrontier.com.