Sarbanes-Oxley - Big Cost, Little Benefit

Washington, D.C.—Sarbanes-Oxley, the federal law aimed at protecting investors from corporate abuses, is actually hurting investors by preventing them from growing wealth, according to a new study published June 7, 2007 by the Competitive Enterprise Institute.

“Enacted after major corporate scandals, the law increases penalties for fraud, but it also contains many mandates that unduly restrict legitimate entrepreneurs,” writes the study’s author, John Berlau, the director of CEI’s Center for Entrepreneurship.

But the costs of the 2002 law affect investors, too, warns the study. If “companies do not have the same access to the markets that Wal-Mart and Home Depot did in their early years,” investors “do not have the same opportunity to build wealth with them.” Berlau notes that since “emerging growth companies [are] an important part of diversified portfolios,” Sarbanes-Oxley’s barriers to firms going and staying public could have negative effects on the portfolios of the retiring Baby Boom generation.

The report, SOXing It to the Little Guy: How Sarbanes-Oxley Hurts Small Investors and Entrepreneurs, identifies major flaws in the law, showing it can’t be merely “tweaked.” These include:

· Section 404, the law’s most costly provision. “Section 404 forces auditors and executives to sign off not only on the accuracy of a company’s financial statements, but also on its ‘internal controls,’ a vague term which the law does not define,” Berlau explains.

· Section 301 is another problem. It “mandates the one-size-fits-all requirements that only ‘independent’ directors sit on companies’ audit committees, intruding on the cohesiveness and efficiency of different types of boards.”

· Section 201 “prohibits a company’s auditor from performing any other services for the firm,” a prohibition which has “caused costly duplication of many accounting tasks.”

Other critics of the current regulatory climate have included House Democratic Leader Nancy Pelosi, Home Depot co-founder Bernie Marcus, and Motley Fool investing columnist Bill Mann.

Berlau calls for a thorough overhaul of the law. He proposes an alternative stock venue free of Sarbanes-Oxley and other SEC requirements, in which fraud would still be punished, but “investors would be able to choose how many preexisting rules are necessary.”

Read the study http://www.cei.org/gencon/004,05954.cfm.

Baja Fresh Mexican Grill
Fast Fix Jewellery
Mr. Pretzels
Carlâ s Jr. â a Division of CKE
HomeWatch Care Givers
Papa Johnâ s International

Investors may register on line at http://www.buyusa.gov/canada/en/675.html

For more information or to register for the event please contact: Viktoria Palfi at 416-595-5412 ext. 229 or Calin Ratis at 416-5955412 ext. 223.

Sandvine's founding team receives 2007 'Entrepreneur of the Year' award

OTTAWA - Celtic House Venture Partners announced that the founding team of portfolio company, Sandvine received Canada's Venture Capital & Private Equity Association's (CVCA) 14th Annual 'Entrepreneur of the Year' Award. Dave Caputo, Co-founder, President and CEO of Sandvine, was honoured at the Gala Evening at the CVCA's 2007 Annual Conference in Halifax last night on Tuesday May 29, 2007.

"Sandvine has succeeded and exceeded expectations in a time when there has been a 'crisis in confidence' in the venture industry in this country," said Andrew Waitman, Managing Partner of Celtic House Venture Partners. "The company, a poster child for a well-executed venture deal, has demonstrated that Canadian entrepreneurs can build a world-class business, deliver real benefits to the Canadian economy, and win without being bought out early by US acquirers."

In March 2006, Sandvine was listed on London's AIM Exchange, raising $37 million and achieving a market cap of over $230 million at its first day of closing. Sandvine was listed on the TSX in October 2006, raising a further $13 million. As of May 28, 2007, Sandvine (TSX:SVC) had a market capitalization of approximately $580 million - the highest market cap of any Canadian VC-backed IT company that has gone public since 2000 according to venture industry data.

In September 2001, Sandvine secured C$20 million in seed financing. This seed financing round, led by Celtic House, was one of the largest in Canadian venture history. In just over 5 years since, Dave Caputo and co-founders Mark Morin (Chief Technology Officer), Brad Siim (COO and VP Engineering), Don Bowman (VP Consulting Systems Engineering), and Tom Donnelly (EVP Marketing & Sales) have grown Sandvine from the concept stage into a leading developer of intelligent broadband network management solutions.

"I am honoured to accept this award on behalf of the talented team at Sandvine. This team has truly embodied the entrepreneurial spirit with their passion, drive, and innovation. I look forward to continuing this adventure and building world-class broadband products and solutions," said Dave Caputo, Co-founder, President and CEO of Sandvine.

Sandvine's founding team was the same team that built and sold PixStream in December 2000 to Cisco Systems for C$500 million in stock. "Having seed-funded a successful venture like PixStream, I knew we had a winning team. When the founders approached us to start-up Sandvine, I wanted to ensure that the company was well-funded so that they could properly execute on their ambitious plan," added Waitman.

“When we first affiliated with the brand in 1992, the Coldwell Banker Canadian master franchise was owned by CBREC,” explains Benninger, “so for us, this event is like coming home. We’re very excited about having an even stronger voice in how the brand is marketed and gaining more immediate access to Coldwell Banker systems and tools. And on a personal level, I’m looking forward to working more closely with Sherry Chris, CBREC’s Chief Operating Officer. Sherry and I have known each other for over 25 years, since we both worked together here in Kitchener.”

Sherry Chris, who joined Coldwell Banker Real Estate Corporation as its chief operating officer in 2006 is a Canadian citizen who spent the first 23 years of her real estate career in Canada before moving to the U.S. in 2003 to accept the presidency of a regional real estate franchise operating in 10 states. A familiar face in Kitchener-Waterloo and throughout southern Ontario, Chris earned her undergraduate and MBA degrees from the University of Western Ontario.

In her current role, Chris directs CBREC’s operations, education, mortgage and field services programs. She also focuses on communication between Coldwell Banker corporate headquarters, Canadian operations, regional offices and an affiliate network of nearly 4,000 offices and 130,000 agents worldwide. Under the new operating structure, Gary Hockey and Ron Hunter, respectively president and COO of Coldwell Banker Canada will report to Chris.

“Sherry is intimately familiar with the Canadian real estate industry, our regulatory requirements and the unique characteristics of the Canadian marketplace,” confirms Benninger. “Now being more closely aligned with the brand, we will all benefit from Sherry’s active involvement in the Canadian operation.”

Recently, Chris had an opportunity to return to her Kitchener-Waterloo roots when she was the keynote speaker at the Coldwell Banker Peter Benninger Realty annual awards breakfast on Thursday, April 5 at The Waterloo Inn and Conference Centre.