Toronto, April 26, 2001 - Kilmer Capital Partners Limited is pleased to announce the first closing of the Kilmer Capital Fund L.P. at $104 million. The new Fund is expected to reach $125 million later this year.

The Fund will target investments in established mid-market Canadian companies in industries with strong growth potential. "We have developed a successful model for financing traditional proven businesses with high growth opportunities in the new economy," stated Anthony Sigel, Managing Partner of Kilmer Capital Partners Limited. Typical investments will range in size from $10 million to $25 million, with transaction sizes of up to $100 million. The Fund will provide patient equity to companies seeking financing for expansion, management buyouts, industry consolidations, restructurings and going private transactions. The Fund will consider transactions involving both control and significant minority investment positions.

Kilmer Van Nostrand Co. Limited ("KVN") the investment holding company controlled by Lawrence Tanenbaum is sponsoring the Fund. Leading Canadian institutions backing the Fund include the Ontario Municipal Employees Retirement System, Royal Bank Capital Partners, The Canadian Medical Protective Association, Bank of Nova Scotia, Bank of Montreal Capital Corporation, BMO Nesbitt Burns Equity Partners Inc. and the Toronto Dominion Bank.

The sponsor of the Fund has successfully helped a number of Canadian entrepreneurs grow their businesses into leading companies in their industries. "Beyond providing capital to facilitate a situation we work very closely with management in a collaborative fashion to accelerate growth by providing operational and M&A support. The current weak economic climate is ideal for our active investment approach," stated Arnie Gross, Managing Partner of Kilmer Capital Partners Limited. The investment orientation of the Fund stems from our sponsor's deeply rooted operational history. Over the past 20 years through the completion of more than 20 mergers and acquisitions, KVN built The Warren Paving and Materials Group Limited, into Canada's largest national road paving company, with revenues in excess of $600 million.

KVN has been actively investing in private equity since 1994 and has generated exceptionally attractive investment returns. Well known for its investment in Maple Leaf Sports & Entertainment Ltd., the owner of the Toronto Maple Leafs, Toronto Raptors and the Air Canada Centre, KVN has also backed other highly successful companies including SMTC Corporation and Coretec Inc. There are currently six companies remaining in the KVN portfolio. The managing partners of the Fund are Larry Tanenbaum, Anthony Sigel, Michael Griffiths, Arnie Gross and Doug Peel.

Information:

Anthony Sigel Managing Partner Kilmer Capital Partners Limited (416) 815-4989

Arnie Gross Managing Partner Kilmer Capital Partners Limited (416) 815-4989