INVESTMENT CRITERIA

Often the process to appraise potential investments begins with a written business description; as short as a white paper or an executive summary, or as long as a business plan accompanied by supporting appendices. The key information that we ultimately need includes:

Market requirements and characteristics:

• Product features, functions, and benefits
• Risks associated with technology development, market conditioning, sales distribution, and management development
• Track records of the founders
• Resources required to mature the concept into a self-sustaining company

Allegis Capital is looking for visionary founders and winning managers, compelling products and technologies, the ability to create and lead future markets through "unfair advantage", manageable technical and competitive risks, opportunities for leverage through corporate limited partners, ROI potential, and realistic exit strategies.

We consider the following criteria to be among the most important when evaluating investment opportunities:

Qualified Management: An experienced, dedicated management team with a sense of urgency. In those cases where skills or experience are missing, we can provide help. We have significant experience with executive searches for all levels of management, both for open and replacement positions.

Strong Business Fundamentals: The opportunity should be in a large market characterized by rapid, high-growth. A company's products or services should be proprietary, providing early competitive barriers to entry.

Capital Requirements: All potential investments should be based upon reasonable projections of financial performance. Additional capital requirements, both from equity and debt, or through generation of internal positive cash flow, are analyzed to contemplate and plan an orderly capital formation process.

Exit Strategy: The ability to liquidate an ownership position in an investment should be well understood. Entrepreneurs and investors should share the same strategic goals to be successful.

Contact us and we will be happy to supply you with references to entrepreneurs who can tell you about the Allegis difference. Talk to our portfolio CEO's and they will tell you that working with Allegis makes a significant difference when you have limited time, investment dollars and the competitors fighting for market share.

ALLEGIS CAPITAL AND ENTREPRENEURS FOUNDATION

Allegis Capital is proud to partner with Entrepreneurs Foundation, helping emerging companies to incorporate community involvement and philanthropy into their culture and values. Allegis Capital partners volunteer as EF board members and advocates, and many Allegis Capital portfolio companies are current EF member companies, including Apprion, Collinear, IronPort Systems, LGC Wireless, and PacketDesign. Allegis Capital is dedicated to integrating community programs into companies from day one, and in 2006 earned EF's Venture Capital Award of the year.

Entrepreneurs Foundation is a non-profit organization dedicated to engaging high growth companies in corporate citizenship and philanthropic efforts so that new and leveraged resources are generated for community benefit. Since inception, Entrepreneurs Foundation's 150 participating companies have created foundations and programs that are making a positive impact in the social sector. To date, EF and its participating companies have engaged 10,000 employees who have contributed more than $5 million to support 140+ non profit and social benefit organizations, worldwide. For more information about Entrepreneurs Foundation, visit www.efbayarea.org.