Covington Group of Funds Investee PlateSpin Ltd. To Be Acquired for USD$205 Million

Leader In Data Centre Management Software To Be Acquired by

Toronto, Ontario
February 26, 2008

Covington Group of Funds (“Covington”) is pleased to announce that Novell, Inc. has entered into a definitive agreement to acquire Covington investee PlateSpin Ltd. (the “Company”) for USD$205 million (all cash transaction). The acquisition was announced by Novell on Monday February 25, 2008 and is expected to close in Novell’s second fiscal quarter of 2008, subject to the satisfaction of closing conditions.

As one of the seed investors in the Company, and one of the largest investors in PlateSpin, Covington has played a significant role in the growth and success of PlateSpin. In less than five years since the Company’s inception, PlateSpin has emerged as a leader in the virtualization of the data centre and has changed the way businesses throughout the world manage their technology resources. Providing their clients with the flexibility and efficiencies to improve service, lower costs has made PlateSpin one of Canada’s most notable emerging growth companies. The Company’s products will allow Novell to provide their clients with a deeper and more robust platform to manage their virtual infrastructure systems and will act as a cornerstone to the Novell enterprise Linux and IT management strategy.

With a significant equity investment in the Company, Covington has secured a very strong return on its initial investment for its shareholders. “We are extremely pleased with this transaction and what it means to our shareholders,” states Phil Reddon, Managing Director, Covington Capital Corp. “PlateSpin’s story is a testament to what can happen in the venture capital marketplace when a company develops products to meet its customers’ current needs, as well anticipate future industry trends, to effectively deliver reliable, cutting-edge solutions for the long-term. Covington’s involvement in PlateSpin clearly underscores the role a venture partner can play in providing support for Canadian enterprises to become industry leaders at a global level,” adds Mr. Reddon.

“The ability of PlateSpin to realize its corporate vision is a direct result of the right combination of the Company’s capability to develop unique software solutions and the strategic direction of investment partners such as Covington. Our partners have provided both the financing and long-term operational guidance that has ultimately resulted in what should be one of the most notable Canadian technology related transactions of the year,” notes Stephen Pollack, founder and CEO PlateSpin Ltd.

PlateSpin is held within the Covington Strategic Capital Fund and Covington VentureFund Series I, II, & II, Covington Venture Fund – New Millennium Series, as well as two of Covington’s CSBIFs.

About PlateSpin Ltd.

PlateSpin provides a unified suite of solutions to help enterprises adopt, manage and extend their use of server virtualization in the data center. PlateSpin’s patent-pending conversion and optimization technology liberates software from hardware platforms, allowing servers to be streamed over the enterprise network from any source to any destination. This freedom of movement ensures the best fit between server resource supply and application workload demands.

Global 2000 companies use PlateSpin solutions to lower costs and solve today’s most pressing data center initiatives such as server consolidation, disaster recovery and hardware migration. PlateSpin was recently awarded the 2006 International Business Award for Best Company and the 2006 Virtualization Technology of the Year Award (UK). The company ranked second on the 2007 Deloitte Technology Fast 50 ranking of the fastest-growing technology companies in Canada and fifth on the eighth annual PROFIT HOT 50 for emerging growth companies. For more information please visit

About Covington Group of Funds

Founded in 1995, Covington Group of Funds ( is one of Canada’s largest and most experienced venture capital fund providers. Covington Group of Funds manages over $450 million in venture capital assets on behalf of institutional and retail investors. These funds invest in small-and-medium businesses throughout many industry sectors. The Covington Group of Funds, headquartered in Toronto, is an affiliate of Affiliated Managers Group, Inc. AMG is an asset management company with equity investments in a diverse group of boutique investment management firms. AMG’s strategy is to generate growth through the internal growth of its existing Affiliates, as well as through investments in new Affiliates. AMG’s innovative transaction structure allows individual members of each Affiliate’s management team to retain or receive significant direct equity ownership in their firm while maintaining operating autonomy. In addition, AMG provides centralized assistance to its Affiliates in strategic matters, marketing, distribution, product development and operations.

For more information please contact:
Fiona Robertson
EVP Sales and Marketing
Covington Group of Funds

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