Q3 2005 CLEANTECH INVESTMENT INCREASES 15% TO $425 MILLION

Largest Cleantech Quarter Ever, Cleantech Grows to the Sixth Largest Venture Capital Investment Sector

ANN ARBOR, MI, December 8, 2005 - According to the Q3 2005 Cleantech Venture MonitorTM, cleantech investment totaled more than $425 million in 69 separate Q3 deals. This is the largest quarter ever recorded for the cleantech category, representing a 15.3% increase from Q2 2005. In the 3rd quarter of 2005 Cleantech captured 8.1% of the $5.263 billion of venture capital invested in North America overall, up significantly from 6.1% in the previous quarter. Cleantech now ranks 6th in size behind Software, Biotechnology, Telecommunications, Medical Devices and Equipment and Semiconductors. The Monitor is compiled by the Cleantech Venture Network LLC, a for-profit membership organization bringing insight, opportunities and relationships to investors, entrepreneurs and service providers interested in clean technology.


"The cleantech sector continues to garner increased attention from major companies, including the recent announcement by British Petroleum to commit more than $8 billion over the next ten years into alternative and renewable energy, we will continue to see the tremendous growth reflected in the Q3 2005 numbers," said Nicholas Parker, chairman and co-founder of the Cleantech Venture Network LLC. "As we look forward to the year ahead we believe that we will see the number and range of capital committed to cleantech deals continue to grow at an exceptional, but measured tempo."

"In late October Cleantech Venture Forum VIII in Washington DC attracted more than 300 attendees and featured cleantech comments and observations from Senator Hillary Rodham Clinton, Under Secretary of Energy David Garman and William McDonough among many other insightful presentations," said Keith Raab, CEO and co-founder. "We are thrilled to bring the Cleantech Venture ForumTM back to San Francisco in 2006. The event will again be held at the San Francisco Marriot from March 21-23, as we look to continue the organization's successful cleantech deal flow services and research efforts into the New Year."

The most active investor in Q3 was EnerTech Capital with five investments in the quarter. Chrysalix Energy, Draper Fisher Jurvetson and Kleiner, Perkins, Caufield & Byers participated in a total of three financings each.

Key Q3 2005 Statistics:
• The Return of the Northeast: In an upset the Northeast reclaimed its number one position in cleantech investment with a record setting $141.4 million
• West Coast Depression: West Coast investment slipped to less than 10% of total capital committed to cleantech at $41.0 million, the lowest recorded quarter for the region since Q4 2002
• Energy Continues to Dominate: Q3 energy related investment increased 32.5% from Q2 capturing 59% ($251 million) of total cleantech investment, 38 of the 69 Q3 investments were energy related
• Water and Materials Doubles: Water Purification and Management ($61.5 million) and Materials Recovery and Recycling ($29 million) both saw increased investments increasing more than 50% respectively
• Materials and Nanotechnology Falter: Investment in materials and nanotechnology declined to $28.7 million in investment over only eight investments
• Environmental IT Slow to Build on 2004 Growth: With one Q3 deal, only 5 investments have been made in the sector in 2005 for a total of under $20 million combined, after a total of $60.3 million was invested into the category in 2004

About the Cleantech Venture Network, LLC
The Cleantech Venture NetworkTM LLC is a for-profit membership group that connects venture, corporate and institutional investors, entrepreneurs and service providers interested in clean technology through related information products, online services and the Cleantech Venture Forum series of events. The organization's mission is to accelerate the next and necessary wave of venture innovation and investment.

Cleantech Venture Network serves more than 900 affiliate investor member firms worldwide. The organization has tracked more than $4.2 billion invested in cleantech ventures since 2002, of which over $340 million has been raised by Cleantech Venture Forum presenting companies. Cleantech Venture Network has offices in Canada, Europe and the US. Further information can be found at www.cleantech.com or by calling (+1) 517-223-9607.

Cleantech Venture Network invites companies and investors engaged in commercializing or investing in cleantech to apply for membership as a Company or Investor. Companies should contact Lauren Bigelow at lauren{at}cleantech.com and investors should contact Keith Raab at keith{at}cleantech.com.


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