Quest for Growth NV — Earnings Release 2010

Jan 27, 2011

PRESS RELEASE Leuven / 27 january 2011 / 5.40 PM

Regulated information. This press release contains information subject to the transparency requirements imposed on listed companies

QUEST FOR GROWTH

Privak, fixed capital investment company established under Belgian Law

SCHEDULE FOR PUBLICATION: on 27 January 2011: 5.40 PM press releases available at www.questforgrowth.com on 28 January 2011: 11.00 AM press & analyst meeting, Quest Management NV, Lei 19, 3000 Leuven

Quest for Growth books € 20 million profit in 2010

Key figures:

• Return on equity per share: + 24 % since 31 December 2009
• Net Asset Value per share before dividend distribution at December 31st 2010: € 8.99 (December 31st 2009: € 7.25).
• Net profit for the fiscal year: + € 20,568,083 (+ € 1.74 per share) against a profit of € 18,076,265 (+ € 1.53 per share) for the previous fiscal year
• Share price at December 31st 2010: € 5.31 (December 31st 2009: € 4.65) or an increase of 14.2 %.
• Discount of the share price versus Net Asset Value: 40.95 % at December 31st 2010 (35.9 % at December 31st 2009).
• One new investment in an unquoted company in 2010: Anteryon (+ € 1,500,000)
• Two important exits in 2010: CoreOptics and Movetis

In 2010 Quest for Growth booked a net profit of 20.6 million euro and obtained a return of 24 % on equity since the beginning of the fiscal year. Over the last two fiscal years a profit of 39 million euro was booked. The profit of 2009 and 2010 does not fully compensate for the loss of 2008: the balance sheet following appropriation of the result still shows a transferred loss at December 31st 2010. Consequently, it is legally impossible for Quest for Growth to distribute a dividend from the profit of the past fiscal year to its shareholders. However, the loss carried forward has meanwhile dropped to less than 6 million euro so that it can be hoped that we will be able to announce a distribution of dividends to the shareholders after the Annual General Meeting of March 2012.

Not only the absolute performance of 2010 but also the relative performance was satisfying: the obtained return of 24 % is indeed considerably higher than the return of the reference indices Benmax New Markets 50, which amounts to 13 %, and the American technology index Nasdaq showing an increase of 17 %. Only the same Nasdaq expressed in euro performs slightly better than Quest for Growth, with 26 % in 2010, thanks to the increase of the dollar rate.

Moreover the composition of the profit is excellent: both the quoted and the unquoted portfolio and the investments in other funds have contributed substantially to the global result.

Nevertheless the evolution of the share price was disappointing: the increase of 14 % stayed far behind the increase of the net asset value. The discount of the share price to the net asset value amounted again to approximately 41 % at the end of the year. Possibly the growing perspective of a distribution of dividends can lead to a decrease of the discount in the course of the fiscal year 2011, as has happened in the past.

The profit contribution from the private equity activity stems mainly from two investments: Movetis, listed on NYSE Euronext since December 2009, was the object of a public take-over bid made by the Irish Shire Plc. Quest for Growth, which had already invested in Movetis since its inception, decided to accept this offer. The contribution of Movetis to the profit of the fiscal year 2010 amounts to 4.5 million euro. A second successful exit from the unquoted portfolio concerned CoreOptics. CoreOptics was taken over by Cisco, which generated a profit for Quest for Growth of 2.5 million euro.

In 2010 only one new company was added to the private equity portfolio. Quest for Growth invested 1.5 million euro in Anteryon, the world leader in WaferOptics® technology and producer of camera modules for mobile phones. Quest for Growth has also committed to invest - over a period of 5 years - 15 million euro in the Capricorn Health-tech Fund. This decision fits in with the announced intention to merge Quest Management NV, the current managing director of Quest for Growth, and Capricorn Venture Partners NV, a specialist in investing in unquoted companies, active in the same sectors as Quest for Growth, namely Cleantech, Health-tech and ICT. The proposed merger is particularly important for Quest for Growth because this concentration of forces will lead to a higher deal flow, both qualitatively and quantitatively, for private equity investments and thereby further improve the future results of Quest for Growth.

The Annual General Assembly will be held on 17 March 2011 at 11.00 PM in Leuven.

RETURN ON EQUITY OF QUEST FOR GROWTH AND MARKET INDICES UNTIL 31 DECEMBER 2010 TOTAL SHAREHOLDERS RETURN ( 31/12/2009 – 31/12/2010)

1. BALANCE SHEET

	2010 31 December	2009 31 December	2008 31 December	2007 31 December	2006 31 December
ASSETS
Fixed assets	99,778,377	79,850,099	61,137,896	108,892,469	105,699,790
Formation expenses	0	0	0	0	0
Financial assets	99,778,377	79,850,099	61,137,896	108,892,469	105,699,790
Shares	93,078,608	78,033,562	59,198,500	108,028,068	104,733,291
Amounts receivable	6,699,769	1,816,537	1,939,396	864,401	966,499
Current assets	6,298,058	5,713,801	6,535,923	7,606,626	11,865,851
Amounts receivable in more than one year	885,932	0	0	0	0
Trade receivables	0	0	0	0	0
Other receivables	885,932	0	0	0	0
Amounts receivable within one year	98,934	399,726	235,277	298,014	185,804
Trade receivables	0	237,256	177	0	0
Other receivables	98,934	162,470	235,100	298,014	185,804
Short term investments	1,376,910	3,455,768	816,811	6,870,357	11,043,412
Own shares	1,376,910	1,205,768	816,811	1,702,806	1,093,412
Term deposits	0	2,250,000	0	5,167,551	9,950,000
Cash at bank and in hand	3,724,105	1,797,803	5,165,410	297,132	546,328
Deferred charges and accrued income	212,177	60,504	318,425	141,123	90,307
TOTAL ASSETS	106,076,435	85,563,899	67,673,819	116,499,095	117,565,641
LIABILITIES
Capital and reserves	106,009,655	85,441,572	67,365,307	115,769,735	95,943,007
Issued capital	109,748,742	109,748,742	109,748,742	109,748,742	89,942,195
Reserves	2,251,148	2,251,148	2,251,148	6,000,000	6,000,000
Reserves not available for distribution	1,376,910	1,205,768	816,811	1,702,806	1,093,412
Reserves available for distribution	874,239	1,045,380	1,434,337	4,297,194	4,906,588
Profit carried forward	0	0	0	20,993	812
Loss carried forward	(5,990,236)	(26,558,319)	(44,634,583)	0	0
Amount payable	66,779	122,328	308,512	729,359	21,622,634
Amounts payable within one year	66,291	69,648	80,253	729,359	21,614,063
Financial debts	0	0	0	0	0
Trade debts	7,865	42	0	0	0
Taxes	70	72	178	420	324
Dividends to be paid for the fiscal year	0	0	0	600,394	21,539,468
Other amounts payable	58,356	69,534	80,075	128,546	74,272
Accrued charges and deferred income	488	52,679	228,259	0	8,570
TOTAL LIABILITIES	106,076,435	85,563,899	67,673,819	116,499,095	117,565,641

2. INCOME STATEMENT
	Fiscal year 2010	Fiscal year 2009	Fiscal year 2008	Fiscal year 2007	Fiscal year 2006
Operating income and charges
Gross operating income	21,373,611	19,136,134	(45,903,202)	3,096,848	22,750,915
Realised gains/losses on shares	14,229,612	(9.073,057)	(7,910,960)	3,489,436	22,887,740
Unrealised gains/losses on shares	7,108,393	28,305,578	(38,451,622)	(1,333,413)	401,662
Result from option transactions	254,920	54,090	68,553	(16,463)	(611,553)
Realised results from Forward currency rate agreementsn	(457,777)	(326,057)	752,579	824,850	(45,926)
Unrealised results from Forward currency rate agreements	238,462	175,579	(361,752)	132,438	118,991
Depreciation and other amounts written off	0	0	0	0	0
Other operating chargesn	(1,973,725)	(2,281,376)	(2,688,514)	(2,616,901)	(2,074,225)
Management fee	(1,610,959)	(1,950,000)	(2,276,684)	(2,156,217)	(1,645,231)
Custodian fee	(43,940)	(29,871)	(43,820)	(67,015)	(59,036)
Statutory Auditors fee	(9,183)	(12,047)	(9,680)	(20,933)	(20,364)
Printing and publication costs	(64,155)	(68,663)	(122,038)	(148,219)	(122,808)
Annual tax on Collective Investment schemes	(67,763)	(53,892)	(92,616)	(76,754)	(67,163)
Directors fees	(72,398)	(68,719)	(53,350)	(53,140)	(60,538)
Advisory fees	(34,683)	(22,219)	(14,731)	(22,024)	(16,797)
Accountancy	(0)	(0)	(0)	(16,200)	(16,200)
Others	(70,602)	(75,966)	(75,595)	(56,399)	(66,088)
Operating Profit/Loss	19,399,928	16,854,758	(48,591,716)	479,947	20,676,690
Financial income	1,394,583	1,025,963	1,621,451	1,527,626	1,184,793
Financial chargesten	(226,358)	195,616	(1,434,317)	(1,386,901)	(325,236)
Amounts written off own shares*	171,141	388,957	(1,280,790)	(153,548)	0
Capital increase costs	(0)	(0)	(0)	(698,722)	0
Others	(397,350)	(193,341)	(153,527)	(534,631)	(325,236)
Profit/Loss on ordinary activities, before taxes	20,568,153	18,076,337	(48,404,582)	620,672	21,536,246
Income taxes	(70)	(72)	154	(97)	(324)
Profit/Loss for the period	20,568,083	18,076,265	(48,404,428)	620,575	21,535,923
* withdrawals

3. PROFIT DISTRIBUTION

	Fiscal year 2010	Fiscal year 2009	Fiscal year 2008	Fiscal year 2007	Fiscal year 2006
Profit to be appropriated				621,387	21,540,280
Loss to be appropriated	(5,990,236)	(26,558,319)	(48,383,435)
Profit to be appropriated for the period	20,568,083	18,076,265		620,575	21,535,923
Loss to be appropriated for the period			(48,404,428)
Profit/loss brought forward	(26,558,319)	(44,634,583)	20,993	812	4,357
Transfers from capital and reserves			3,748,852
From reserves			3,748,852
Transfers to capital and reserves
To other reserves
Profit/loss to be carried forward	(5,990,236)	(26,558,319)	44,634,583	(20,993)	(812)
Profit to be carried forward				(20,993)	(812)
Loss to be carried forward	(5,990,236)	(26,558,319)	44,634,583
Distribution of profit				(600,394)	(21,539,468)
Dividends				600,394	21,539,468

4. OFF BALANCE SHEET POSITIONS

4.1. Commitments
	Commitments in currency	Currency	Commitments in € 31/12/2010	Commitments in € 31/12/2009
Capricorn Cleantech Fund(*)	1,125,000	€	1,125,000	1,375,000
Capricorn Health-tech Fund(*)	11,250,000	£	11,250,000	0
Carlyle Europe Technology Partners I	373,086	€	373,086	377,927
Carlyle Europe Technology Partners II	2,535,665	€	2,535,665	3,364,114
Life Sciences Partners III	196,548	€	196,548	364,589
Life Sciences Partners IV	1,717,779	€	1,717,779	1,780,402
Schroder Ventures International Life Sciences Fund II	19,953	\$	14,933	49,947
Ventech Capital 2	305,571	€	305,571	300,000
Vertex III	428,183	\$	320,448	541,441
Total:			17,839,030	8,364,744

* Dr. Jos B. Peeters is Managing Director of Capricorn Venture Partners (Director of Capricorn Cleantech Fund and Capricorn Health-tech Fund) and also Chairman of the Board of Directors of Quest for Growth

4.2. Forward Currency Rate Agreements
Value date	Counterparty	Quest for Growth buys	Quest for Growth sells
31/01/2011	Dexia Bank	1,993,199.67 €	1,700,000 £
31/01/2011	KBC Bank	2,461,913.61 €	2,100,000 £
31/01/2011	Dexia Bank	2,894,796.98 €	3,800,000 \$
31/01/2011	KBC Bank	4.266,926.75 €	5,600,000 \$

5. REPORT OF THE STATUTORY AUDITOR

The statutory auditor, Klynveld Peat Marwick Goerdeler Bedrijfsrevisoren – Réviseurs d'Entreprises, represented by Mr. Pierre Berger, has issued an unqualified audit opinion on the financial statements of the fiscal year 2010, with explicative paragraph (confirming that the financial statements have been drawn up in the assumption of going concern) and has confirmed that the accounting data included in this annual announcement does not include any apparent inconsistencies with the financial statements.

The annual financial report including the audited annual accounts, the annual report, the statement on the true and fair view of the annual accounts and the fair overview in the annual report by the responsible persons and the report of the Statutory Auditor shall be available as from March 1st 2010, on request at the registered office: Lei 19 box 3, 3000 Leuven, Belgium.

QUEST FOR GROWTH NV Privak, fixed capital investment company established under Belgian Law Lei 19, box 3 B-3000 Leuven - Phone: +32 (0)16 28 41 28 - Fax: +32 (0)16 28 41 29

www.questforgrowth.com quest@questforgrowth.com