VENTURE MICHIGAN FUND: FREQUENTLY ASKED QUESTIONS

1. What is the Venture Michigan Fund?

The Venture Michigan Fund ("VMF") is a venture capital fund investment program that has been formed under the Michigan Early Stage Venture Investment Act of 2003 ("VMF Act"). VMF seeks to promote Michigan's economic health by assisting in the creation of new jobs, new businesses and new industries in Michigan through the creation of a fund-of-funds, the Venture Michigan Fund I, LP ("VMF-I" or "Program") that would invest in venture capital managers that invest primarily in Michigan-based early stage companies.

2. What are the investment objectives of the Program?

The Program seeks to:

• Achieve a superior internal rate of return on venture capital investments while contributing to the economic development of the State of Michigan;
• Enhance and diversify the economic base of Michigan by fostering the creation and growth of new jobs, new businesses, and new industries within the State, and through investment in certain businesses that focus on areas including, but not limited to, alternative energy technology, high-technology, and healthcare;
• Promote the retention of businesses and jobs through investments in Michigan-based businesses;
• Encourage the development and growth of a vibrant Michigan-based venture capital community;
• Help to facilitate the transfer of technologies from the State's various universities and research institutions to the private sector;
• Help to attract investments from both regional and national venture capital funds; and
• Help to facilitate public and private partnerships within the State.

3. What is the source of financing for VMF-I?

VMF-I raised a 14-year debt financing from Deutsche Bank guaranteed by $200 million of tax vouchers provided by the State. After taking into account interest and other Program-related expenses, this will provide approximately $95 million of new capital to the Michigan venture community over the next three years; furthermore, depending upon the returns generated by the underlying funds, there is a possibility that more capital will become available for investing at a later date.

4. Has Credit Suisse provided financing to VMF?

Yes, Credit Suisse has provided $5.0 million to VMF.

5. What are the basic investment guidelines for the Program?

Some of the investment guidelines that the Program seeks to follow include:

• Local, regional and national fund managers;
• First-time and established fund managers;
• Venture capital funds, primarily those that focus on seed and early stage investments; and
• Diverse industry exposure across underlying portfolio companies.

6. What are some of the investment restrictions as per the VMF Act?

Some of the investment restrictions as per the VMF Act include:

• No more than 15% of the total capital commitments shall be invested in a single venture capital fund; and
• The amount of capital committed to a given fund shall not exceed 25% of the manager's total assets under management .

7. Over what period would VMF-I commit capital to venture capital funds ?

VMF-I would seek to make commitments to venture capital funds over a period of up to three years.

8. How many fund managers would VMF-I invest in?

Approximately 10-12 fund managers.

9. What is VMF-I's process / timeline for evaluating fund managers?

The key steps involved in VMF-I's fund manager evaluation process include:

a. Issue a Request for Proposal;
b. Review and shortlist responses;
c. Request for completing the detailed questionnaire;
d. Review of detailed questionnaire / on-site meetings; and
e. Final selection .

As a first step, VMF-I has already requested VC managers that have an interest in the Program to provide any available offering materials such as marketing presentations and/or private placement memorandums. VMF-I has already mailed a copy of this to a number of fund managers that could potentially have an interest in the Program. To obtain a copy of this document, please select the 'Venture Capitalists' tab from the main menu or click on the following link: http://www.venturemichigan.com/venturecapitalists.htm.

VMF-I expects that the complete fund manager evaluation process (steps 'a' through 'e') could take up to 6-8 weeks from the date of receipt of initial responses to the Request for Proposal.

10. How should the response to RFPs be submitted? What is the deadline?

Bidders should submit their proposals by both email and hard copy. Please send electronic copies including all word and excel files to sean.o'donnell@credit-suisse.com . Two hard copies should be sent to the following address:

Sean O'donnell
Columbia Center
201 W. Big Beaver Road
Suite 950
Troy, Michigan 48084

Any questions regarding the specifications in the RFP should be sent via email to: sean.o'donnell@credit-suisse.com .

If a fund manager is not currently raising capital, it c ould still respond to the RFP since VMF-I expects to make commitments to funds over a period of up to three years. Respondents should provide any materials they currently have and indicate in an accompanying letter the status of their investment / fundraising timeline. VMF-I will also be seeking future submissions at later dates over the next three years. For further information on submission of RFPs, please select the 'Venture Capitalists' tab from the main menu or click on the following link: http://www.venturemichigan.com/venturecapitalists.htm.

11. Will submissions be evaluated as soon as they are received?

Yes, VMF-I expects to begin its analysis as soon as it receives submissions.

12. If I'm an entrepreneur seeking to raise capital, whom should I contact?

Please contact Credit Suisse's Michigan office and we will make introductions to potential fund managers that might be able to assist you.

13. Who is the primary contact person for this Program?

Robert D. Payne III
Manager, Michigan Office
Credit Suisse
Customized Fund Investment Group
2000 Town Center, Suite 1900
Southfield, Michigan 48075
Office: (248) 945-7373
Fax: (248) 945-7374
E-mail: bob.payne@credit-suisse.com

Descriptions in this FAQ sheet with respect to VMF-I's strategy and fundraising, and its investment processes were designed as general summaries and were not intended to be and should not be relied upon as a comprehensive description of VMF-I's policies. For further details of VMF-I's strategy and processes, you should contact the designated contact person in Credit Suisse's Michigan office.