FTII Returns 100% of Invested Capital to All Early Investors

September 30, 2007

As a result of gains, and liquidity, we’ve recently realized in our portfolio, we are pleased to announce that FTII has returned 100% of their invested capital to each of our early investors, who will each still hold 38% of the shares they originally purchased.

The ParaSun Exit and Our Philosophy

ParaSun was a large holding and it produced a good return. With the completion of the ParaSun sale to Uniserve, FTII had more cash than we could invest well.

Our philosophy is to keep FTII small and produce the highest returns we can. We are also advocates of optimum, incremental financing strategies. This means we invest our capital at a relatively regular rate. But a big exit like ParaSun returns a lot of cash all at once.

This Tech Cycle and the Current Velocity of Tech Investments

It's also still early in this tech cycle. The 'velocity' and size of tech investments is still relatively small. As this tech cycle, or market rotation, gathers momentum we expect to see a greater number of good quality, larger tech investment opportunities.

Returning Our Early Investors' Capital

To avoid having excess cash, and diluting our future returns, we asked all of our investors who invested at $10.00 per share if they would be agreeable to receiving back all of the capital they had invested. All agreed.

While we do not give tax advice, our understanding is that this is a return of capital and therefore a non-taxable event to our shareholders.

Their Current Shareholdings

These investors all redeemed at our current NAV of $16.20 per share. Each of our original shareholders has received all of their capital back and still holds 38% of the number of shares they originally purchased.

We are pleased that our initial gains, and exit, have allowed us to provide our investors with a full return of capital in approximately two years.

Sincerely,