The Honourable Robert G. Thibault, Minister of Fisheries and Oceans and the Member of Parliament for West Nova, and Geoff Regan, Member of Parliament for Halifax West, announced more than $17.7 million in AIF funding for Nova Scotia projects today, on behalf of the Honourable Gerry Byrne, Minister of State for the Atlantic Canada Opportunities Agency (ACOA).

The Government of Canada has selected five innovative projects that will receive funding under the Atlantic Innovation Fund (AIF). The projects will help boost Atlantic Canada's capacity to compete in the global, knowledge-based economy.

Valued at close to $35 million, the projects will contribute to the growth of new and emerging industries such as telecommunications, educational software, and marine-based nutraceuticals.

"The private sector in the Nova Scotia area continues to increase its activity in Research and Development," said Mr. Thibault. "These projects demonstrate what the Government of Canada is trying to achieve with the Atlantic Innovation Fund - to stimulate partnerships among universities, research centres and industry leaders with the goal of moving more of our cutting-edge research from the labs into the marketplace."

"The private sector in the Greater Halifax area continues to be very active in Research and Development," explained Mr. Regan. "Our region is proud to showcase the talents of these professionals throughout the world where innovation is helping shape the economy of the future."

Although not able to attend the news conference, Minister Byrne stated, "Atlantic Canada is seeing growth in a number of new and emerging sectors and our traditional industries are increasingly adopting new technologies that are helping them to better compete outside the region. I am confident these projects will lead to the development of new business opportunities and export markets, and the creation of good quality jobs for Atlantic Canadians."

The following projects will receive AIF funding:

· CrossOff Inc. of Sydney will receive up to $1.8 million to expand the capability and marketability of its patented DNA MatrixO system, a unique anti-counterfeiting solution that uses DNA-laced ink to visibly or covertly tag and protect products, brands and intellectual property. Total value of the project: $3.2 million.

· Kanayo Software Inc. of Halifax will receive up to $3.1 million to develop a peer-to-peer decision optimization software, a `just-in-time' clinical education tool that will help health care professionals receive information about best practices for patient care and intervention strategies. Total value of the project: $4.4 million.

· MathResources Incorporated, a Halifax-based software development firm will receive up to $2 million to develop a framework for an innovative mathematics learning content management system for kindergarten to grade 12. Total value of the project: $2.8 million.

· Ocean Nutrition Canada Ltd. of Bedford, one of the world's leading innovators in the field of marine-based nutraceuticals, will receive up to $6 million to develop a new process for microencapsulated Omega 3 fatty acids for use in targeted foods. Total value of the project: $14 million.

· The Telecom Applications Research Alliance (TARA) of Halifax will receive up to $4.8 million to build on its successful R&D commercialization model and help Atlantic companies become world leaders in the telecommunications field, including the creation of a world-class wireless testing facility. Total value of the project: $10.47 million.

On July 2nd, Minister Byrne officially announced that a total of 47 projects throughout Atlantic Canada would receive total funding of $155 million through the Atlantic Innovation Fund's first Request for Project Proposals.

Overall, the 47 initiatives, including the ones announced today, now represent total project costs valued at nearly $370 million.

The project proponents have leveraged additional funding from a variety of private sector and public sector sources, including contributions from national funding programs such as the Canada Foundation for Innovation and Technology Partnerships Canada.

On July 2nd, Minister Byrne also announced that he would be initiating a second round of AIF funding by issuing a Request for Project Proposals in the coming weeks.

The $300-million Atlantic Innovation Fund is a five-year Government of Canada initiative that is administered by ACOA. It is designed to build the economy of Atlantic Canada by increasing the region's capacity to carry out leading edge R&D that directly contributes to the development of new technology-based economic activity in the region. Specifically, the Fund is aimed at increasing the R&D being carried out in Atlantic research facilities leading to the launch of new ideas, products, processes and services.

For more information or to view downloadable photos related to Atlantic Innovation Fund Project Announcements - Round One, follow the links below:

Atlantic Innovation Fund
http://www.acoa-apeca.gc.ca/e/financial/aif/index.shtml

ACOA's Photo Album
http://www.acoa-apeca.gc.ca/mediaroom/photo/archives/2002/July.shtml

Canada’s Innovation Strategy
http://www.innovationstrategy.gc.ca

- 30 -

Peter A.H. Graham 
Office of the Minister of State for ACOA
Office: (613) 957-9959
Cell: (613) 294-1990


Jennifer Savoy
Office of Minister Thibault
(613) 996-0076


Kim Blanchette						
Atlantic Canada Opportunities Agency - Nova Scotia	
Office:  (902) 426-9613					
Cell: (902) 456-7094	

Innovative Development of DNA MatrixTM CrossOff Inc.

CrossOff Inc. is a Canadian-based services company with operating units focused in the areas of anti-counterfeiting and brand protection, corporate IT training and consulting, and property management. The company possesses a unique proprietary anti-counterfeiting solution, a DNA-based tracking technology, which uses DNA-laced ink to tag and protect valuable products, brands, and intellectual property. The patented technology combines identifiable DNA (deoxyribonucleic acid) gene segments and ink, DNA MatrixTM, that may be applied as either a visible or covert security marker on any tangible surface. The marker is virtually impossible to decode. With assistance from the Atlantic Innovation Fund, the company proposes to expand the capability and marketability of the existing DNA MatrixTM.

The project involves two separate and distinct research and development components. First, the company will develop an automated DNA extraction and analysis system that will provide greater flexibility when conducting DNA analysis. The portable unit will enable field analysis as opposed to within the confines of a laboratory setting. The second aspect of the project involves developing DNA authentication markers that will remain stable for 100 years, thereby extending the marketability of the company's products.

The company will undertake the project at its research facility in Halifax, Nova Scotia. The project will create thirteen new jobs and maintain twelve existing positions. The value of the worldwide counterfeit market is estimated to be $385 billion US. Company management is confident that its DNA MatrixTM anti-counterfeiting system will be extremely effective in combating this type of fraud. Upon commercialization of this project, the benefits to Atlantic Canada are tremendous given the global appeal of the product and the project's focus on enhancing the product marketability.

The project, with total costs of approximately $3.2 million, will receive up to $1.85 million from the Atlantic Innovation Fund over a two-year period.

Contact information: Kim Long, Vice President, Partnership Development Bob Pelley, Vice President, Research and Development CrossOff Inc. Suite 207, 70 Crescent Street Sydney, NS B1S 2Z7 Tel.: (902) 567-1146

---------------------------------------

Peernet Kanayo Software Inc.

Established in 1999, Kanayo Software Inc. is a Halifax- based software development company in the emerging field of peer-to-peer communication design and architecture. In collaboration with Aventis Pharmaceuticals, and with support from the Atlantic Innovation Fund, the company will develop a peer-to-peer decision optimization software. Initially the software will be used to develop a health care informatics application that will allow health care management to identify and select appropriate patient care and intervention strategies.

Kanayo is working with Aventis Pharmaceuticals to develop PeerNet: a novel clinical education and hospital- based cost-benefit optimization tool. This tool will help clinicians stay current with best medical practices and hospital standards related to managing thromboembolic risks. To achieve the optimal cost-effectiveness for their institutions, the tool will also help hospital administrators merge best medical practice with a comprehensive understanding of cost impacts. PeerNet combines its core optimization capability with a "Just-in- Time" education (JIT) tool. The JIT components of PeerNet will provide the clinical staff with an educational intervention at the moment a clinical decision is being made. The education will be specific and relevant to the particular patient situation, and optimized to achieve the institution's health and cost management goals. The educational intervention is comprehensive in that it helps the clinician understand the latest "best- practice" clinical thinking relevant to the patient decision being made and it incorporates the hospital's own unique guidelines and protocols for the treatment of patients. The tool will also be capable of sharing and disseminating cumulative clinical experience between institutions. No patient-confidential information is ever gathered or disseminated. This project will create and maintain twenty high-paying positions at the company. The economic benefits of this project to Atlantic Canada are significant in terms of increased sales and increased research capacity in the health care and information technology industries.

The project, with total costs of $4,400,000 million, will receive up to $3,100,000 million from the Atlantic Innovation Fund over a five-year period, in addition to funding from private sources.

Contact information: Michael Heller President and CEO Kanayo Software Inc. Suite 212, 1660 Hollis Street Halifax, NS (902) 422-1282

---------------------------------------

Online Mathematical Learning: an E-learning Opportunity MathResources Incorporated

Established in 1996, MathResources Inc. is a Halifax based software development firm devoted to the development of powerful resources for the math classroom. MathResources staff includes mathematicians, teachers and programmers working together to enable students to enjoy the resources of technology in learning about math.

In collaboration with Dalhousie University, and with support from the Atlantic Innovation Fund, the company will develop a framework for an innovative mathematics learning content management system for kindergarten to grade twelve. The project will use innovative teaching methods and new technological tools to enhance the learning of mathematics. The project will include the development of an online mathematics learning web portal. Considerable emphasis will be placed on how to use technology to teach mathematics - the interconnections between the events that happen onscreen and the mathematical content those events are designed to teach.

This project will create thirteen high-paying positions at the company. The economic benefits of this project to Atlantic Canada are significant in terms of increased sales and increased research capacity in the educational software industry.

The project, with total costs of $2,852,550 will receive up to $2,000,000 from the Atlantic Innovation Fund over a five- year period, in addition to funding from private sources.

Contact information: Ron Fitzgerald President and CEO MathResources Incorporated. 5516 Spring Garden Road Halifax, NS Tel.: (902) 429-1323

---------------------------------------

Development of Microencapsuled Omega 3 for Functional Foods Ocean Nutrition Canada Ltd.

Ocean Nutrition Canada Ltd. (ONC) is a rapidly expanding life science company built on a foundation of science and proprietary technologies. ONC is one of the world's leading innovators and researchers of quality marine-based nutraceuticals and functional food ingredients. With the current project, the company will develop a patentable microencapsulation technology and production process for the encapsulation of Omega 3 Long Chain Polyunsaturated Fatty Acids suitable for use in targeted food formats. The project positions ONC as a world leader in the emerging field of microencapsulation of fatty acids and functional food ingredient delivery systems.

ONC is provincially incorporated and has been under its current ownership since 1997. ONC supplies the world with the highest quality packaged marine-based dietary supplements, health and nutritional ingredients, and clinically proven functional food ingredients from its cGMP manufacturing facilities in Nova Scotia to primary markets in the United States, Europe, and Asia.

ONC operates the largest and most sophisticated privately held research and development facility for marine-based natural products in Canada and employs thirty-six scientists in research and development, including eleven staff with doctoral degrees. ONC's research and development focuses on the discovery of new marine-based bio-active compounds, new sources of known nutrient compounds, composition and characterization of new compounds, clinically validated efficacy and safety, and proprietary extraction, processing, and delivery methods.

Development and commercialization of the unique new technologies outlined in ONC's plans will build innovation capacity in the region and provide significant economic benefits to Atlantic Canada. The project is expected to create over thirty new jobs in the short-term (12 to 18 months) and significantly more in the medium to longer term. The project, with total costs of $14,032,610, will receive up to $6,000,000 from the Atlantic Innovation Fund over a five-year period.

Contact information: Dorothy F. Spence Business Unit Manager, Functional Food Technologies Ocean Nutrition Canada Ltd. 757 Bedford Highway Bedford, NS B4A 3Z7 (902) 457-8118

---------------------------------------

Building on Success Telecom Applications Research Alliance (TARA)

Located in Halifax, Nova Scotia, TARA is a public-private partnership that provides cutting-edge telecommunications research and development facilities, technology expertise, seed investments, and business mentoring to firms within the information technology sector. TARA is a membership- based organization with a mandate to assist companies to become world leaders in the development and exploitation of IT Telecom applications and services. TARA's membership comprises three principal partners including Nortel Networks, Aliant Telecom, Cisco Systems, and more than forty members throughout Atlantic Canada. In addition, TARA hosts the global management centre for the Cisco Certified Internetworking Expert (CCIE) program, as well as the Master of Engineering in Internetworking program in affiliation with Dalhousie University.

Since 1995, TARA has been a catalyst for the development and growth of the IT Telecom sector in Nova Scotia. TARA's activities have been instrumental in building a cluster of expertise: enhancing the profile of the sector and contributing to economic development. This project will build on the organization's successful commercialization model and will facilitate the development and commercialization of IT Telecom products and services in Atlantic Canada. In collaboration with regional and national partners, TARA will expand its operations throughout Atlantic Canada and establish a world-class wireless testing facility.

This project will create economic benefits for Atlantic Canada by building a critical mass of expertise and resources in the telecommunications sector, encouraging applied research, building industry receptor capacity, facilitating the development of new products and services and generating increased sales and exports for local communications and information technology companies.

This project, with total project costs of $10,473,281 will receive up to $4,800,00 from the Atlantic Innovation Fund over a five-year period.

Contact information: Wayne Bussey President & CEO TARA Halifax, NS (902) 421-6022