Portfolio Companies:

• MagnaDrive is Seattle, Washington-based leader in power transfer technologies that enable electric motors, diesel engines, blowers, fans and pumps to operate more reliably and efficiently.

• MagnaDrive's Adjustable Speed Drives (ASDs) and the MagnaGuard Coupling employ a patented torque transfer technology using rare earth magnets. The benefits of this technology are a lack of harmonics, elimination of vibration, misalignment tolerance, more efficient motor operations, insensitivity to power quality and "soft" start and stop, all of which result in reductions in equipment and maintenance costs and increased efficiency. In addition, they greatly improve power quality to the load.

• The MagnaDrive ASD has achieved energy savings up to 66% in a variety of industrial and commercial applications.

• The company currently has introduced a 1500hp product, is developing a 5000hp product and is geared toward introducing a 30,000hp product by 2004. The 5000hp unit will penetrate larger scale (3.75MW) distributed generation applications. The 30,000hp unit will bring the above-mentioned MagnaDrive benefits to large scale generation facilities.

• The Power Fund participated in $12.5m fundraising round which will close this fall.

• Positioned to become one of the leading suppliers of high power DC-to-DC converters (also known as bricks) for datacom and telecom applications

• Bricks will increasing be in demand as datacom and telecom migrate to distributed power architectures which are a more reliable alternative to the existing centralized power architecture

• A leading server-level microprocessor supplier has selected SynQor as the brick-of-choice for a new generation of microprocessors; this will be a $1b market opportunity by 2004

• Customers include Nortel, Intel, Lucent, Cisco, Compaq and Tellabs

• The market for high power bricks will exceed $6b by 2003; SynQor is one of 3 or 4 high power brick producers

The Power Fund is investing in what is expected to be the final, pre-IPO round of $10m