The following information was taken and reproduced from promotional material by Vengrowth II Investment Fund Inc., titled "Smart Investor's Guide - Venture Capital Investing".

1	Benefit from 30% Tax Credits

In addition to an RRSP deduction, investors in the venture capital asset class receive up to 30% - 35%, in tax credits on the first $5,000 invested each year. The Federal and Ontario governments each offer up to $750 in tax credits for a combined total of $1,500 in annual tax savings. Your tax savings can easily be re-invested to help you achieve even higher investment returns, or applied to fund personal goals such as paying down your mortgage or saving for a child's education. It's a win-win situation in addition to accessing and supporting Canada's most promising companies, labour Sponsored Investment Funds enables you to achieve immediate tax savings.

2	Access a Top-Performing Asset Class

Proven to out-perform most major asset classes over the long-term, venture capital has the capacity to earn you outstanding investment returns. Venture capitalists work closely and actively with the companies they invest in so that over time, they can be purchased or go public at significantly higher values than the original investment. A venture firm's track record, reputation and investment strategy have a large bearing on the future success of its investments. VenGrowth Funds are guided by the most experienced and accomplished team; employing a proven investment strategy that has produced top-quartile returns for our shareholders.

3	Diversify for Strength

It is important for investors to achieve portfolio diversification in order to spread investment risk among asset classes, geographic exposure, investment styles and sectors. Retail venture capital funds are an outstanding opportunity to give your portfolio added diversification while tapping into a top-performing asset class. And since venture funds invest primarily in private companies, your portfolio is further insulated from public market volatility. With our proven investment strategy, VenGrowth invests in leading, Ontario-based companies diversified across many sectors and areas of business focus - a great opportunity to give your portfolio strength through diversification.

4	A Real Foreign Content Injection

An investment in an LSIF entitles you to boost foreign content within your RRSP to as much as 50%*. Maximizing your foreign content allows you to access a wider range of promising international investment opportunities. The foreign content rule works like this: Assume you have $100,000 in your RRSP, and $10,000 is held within the VenGrowth II Fund (at cost). This allows you to increase the overall foreign content within your RRSP by three times your cost of investment in the VenGrowth II Fund up to a maximum of 50% of the total value of your RRSP Your new foreign content limit is equal to:

3 x LSIF cost ($10,000 x 3)	$30,000
Existing foreign content limit (30%)	$30,000
TOTAL	$60,000
New Foreign Content Limit	$50,000	(50%)
With this calculation you take the lesser of $50,000 or 50% of your total RRSP. *Upon compliance with relevant conditions. Please contact your Financial Advisor or another Tax Advisor for details of the tax considerations applicable in your circumstances.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of The VenGrowth II Investment Fund Inc. before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Availability of tax credits and increase in foreign content are subject to certain conditions and overall limitations. Tax credits are generally subject to recapture if shares are redeemed within eight years. RRSP deductions are not unique to the VenGrowth II Fund. Paid for in part by VenGrowth.



Make your VenGrowth investment work twice as hard

Have you considered what you can do with the tax refund generated by an investment in VenGrowth II? There area number of potential uses for your refund that will help you get the most out of your investment. Speak to your advisor to determine your best course of action.

PAY DOWN YOUR MORTGAGE 4 Assuming: $100.000 mortgage, 7% interest rate, amortized over 25 years Invest $5,000 in VenGrowth II each year for 5 years Apply annual tax savings of $3,820* against the mortgage principal each year for 5 years Total interest cost savings over 25 years $46,529 plus reduce your amortization from 25 to 17 years	REINVEST IN AN EQUITY FUND 4       Value after 5 years Invest $5,000 in VenGrowth II for 5 years Total at cost value $25,000.00 Invest annual tax savings of $3,820* in equity fund in an RRSP Assuming 7% compounded annually $23,506.00 Total Value   $48,506.00
	SAVE FOR YOUR CHILD'S EDUCATION 4       Value after 5 years Invest $5,000 in VenGrowth II for 5 years Total at cost value $25,000.00 (outside RESP) Invest annual tax savings of $3,820* + $400 CESG grant in RESP Assuming 7% compounded annually $62,576.00 (after 18 years) * based on 46.4% tax rate / highest income level

2002 Ontario Tax Savings
The following demonstrates the net cost of investing $5,000 in VenGrowth II through an RRSP.

TAXABLE INCOME LEVEL	Under $30,754	$30,755 to $53,799	$53,800 to $61,509	$61,510 to $63,509	$63,510 to $100,000	$100,001 and over
Investment in VenGrowth II (through RRSP) 1	$5,000	$5,000	$5,000	$5,000	$5,000	$5,000
Federal Tax Credit 2	$ 750	$ 750	$ 750	$ 750	$ 750	$ 750
Ontario Tax Credit' 2	$ 750	$ 750	$ 750	$ 750	$ 750	$ 750
RRSP Tax Savings 3	$1,110	$1,560	$1,655	$1,970	$2,170	$2,320
Based on Combined Federal and Provincial Personal Income Tax Rates of	22.2%	31.2%	33.1%	39.4%	43.4%	46.4%
Total Tax Savings 4	$2,610 (52.2%)	$3,060 (61.2%)	$3,155 (63.1%)	$3,470 (69.4%)	$3,670 (73.4%)	$3,820 (76.4%)
Net Out-of-Pocket Cost on $5,000 Investment	$2,390	$1,940	$1,845	$1,530	$1,330	$1,180

1 The RRSP contribution assumes that the investor is within his or her 2001 contribution limit. RRSP contributions for 2001 must be made on or before the RRSP contribution cut-off date of March 1, 2002. RRSP tax savings are not unique to labour sponsored investment funds. 2 The Federal and Ontario tax credits are generally available provided that the investor has tax otherwise payable against which to offset the tax credits. The tax credits are subject to recapture if the Class A shares are redeemed within eight years.		3 The income tax rates and taxable income levels are based on the Federal and Ontario income tax legislation and proposed amendments in existence as at October 1, 2001, and are the marginal rates for investment income other than capital gains and dividends for individuals resident in Ontario. 4 Reinvestment Figures are hypothetical. Examples for illustration purposes only. Please Consult your tax advisor
Commissions, trailing commissions, management fees and expenses all may be associated with investments in labour-sponsored investment funds. Labour-sponsored investment funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus carefully before investing. .