iTech Capital Notes Elastic Networks' Filing of a Registration Statement with the SEC

Business Wire, July 11, 2000

Business Editors

TRONTO--(BUSINESS WIRE)--July 11, 2000

iTech Capital Corp.(TSE:ITE.) (iTech) noted that Elastic Networks Inc. (Elastic) announced on June 30, 2000 that it had filed a registration statement with the Securities and Exchange Commission to register an as yet undetermined number of shares of its common stock for sale to the public. Elastic designs, develops and markets advanced digital subscriber line (DSL) communications products. Chase H & Q, Robertson Stephens and UBS Warburg are serving as the managing underwriters. Elastic anticipates that the offering will commence in September 2000.

Elastic was originally formed in January 1997 as the Elastic Networks Group of Nortel Corp. and began doing business as a separate company in May 1999. Nortel Corp. holds a 62.8 percent interest in the Company.

iTech, a business development company, which focuses on growth companies in the telecommunications, wireless technologies and B2B e-commerce sectors, made an equity investment of US$1,500,000 in Elastic on February 14, 2000 in a $20,900,000 round of Series B of Redeemable Convertible Participating Preferred Stock. The other principal investors in the round included Pequot Private Equity, L.P., Manufacturers Life Insurance Co. (USA) and Texas Instruments Inc. Over the last 12 months, iTech has made investments in eight emerging private technology companies including Elastic.

Learn more about Elastic by visiting its Web site. http://www.elastic.com