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Hevesi, Bruno, Reilly Ann oun ce Slate Pension Fu nd Invest.

me nt in Upstate Firm GOVERNMENT
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From t he Office of t h e ! ' ew Yo r k State Co m p tr o He r
CONTACT: Press Office FOR RELEASE: Immediately
(5i8) 474-4015 February 9, 2005

Hevesi, Bruno, Reilly Announce State Pension Fund Investment in Upstate Firm
Convergence Technologies Inc. Will Use Investment to Acquire
High-tech Clifton Park Company
and Expand Its Business of Developing VoicelData Systems for School Districts

The New York State Common Retirement Fund is investing $1.7 million in Convergence Technologies Inc.
through the fund's private equity partner, Found ers Equity Inc.. to help the company expand the business
and create jobs, New York Stale Comptroller Alan G. Hevesi and Senate Majority Leader Joseph L. Bruno
announced today .

Including Ihe pension fund's portion. Founders Equity is investing a total of $5 million in Convergence
Technologies, Inc.(CTI). Founders Equ ity and the Retirement Fund expect to double the amount invested
in CTI over the next year for a total $10 million investment. CT', which provides data integration services
(including Voice-over-Internet-Protocol. or ''VoIP'') and resells hardware and software to small and mid-
- size companies, government entities and school dislricls. Vi/ill use the funds to acquire Open Systems
Technologies, LLC. (OST). This transaction represents the first of a number of targeted acquisitions.

"In September, I announced the Retirement Fund's partnership with Founders Equity with a $20 million
commitment. I said then thai we are creating even more opportunities to help New York State businesses
expand and add jobs. Just four months later, Founders Equity has closed its first investment with CTI and
Open Systems, and the promise of new opportunities has become a reality, " Hevesi said. "I look forward
to many more such quality investments with Founders Equity."

"This investment by the Retirement Fund will help strengthen both Open Systems of Clifton Park and CTI
and lay the ground work for future expansion and job creation, " Bruno said. "Providing this kind of
investment is critically important because it demonstrates the State's support for small, cutting-edge
businesses, which are growing many of the new jobs being crealed in the Capital Region and throughout
New York State . I applaud Comptroller Hevesi for his efforts to use the Retirement Fund to invest in New
York businesses: '

"I applaud Comptroller Hevesi's commitment to invest New York Slate retirement funds in companies like
Clifton Park's CTI," Assemblyman Robert Reilly (D-Clifton ParkiColonie/Ha\fmoon) said. "The investment
of retirement system dollars in local companies is not only good for our local economy, but it is a wise
investment of our retirement system dollars . CTI is an exciting small company that has earned the trust of
the State Comptroller and the respect of our community. I congratulate CTI on today's announcement and
wish them all the best in the coming years for their business. "

"We are excited to partner with Convergence and the team at Open Systems in building a major data and
voice provider in the education and commercial arenas: J.D. White, a Founders Equity partner said. ·We
believe the growth opportunities are compelling."

"We chose to work with Founders Equity due to their experience in partnering with small and mid-size
companies to create growth opportunities, while encouraging management to be inventive and challenge
convention," said Convergence Chairman Len Fassler.

The investment in Founders Equity and CTI is part of the New York Stale Common Retirement Fund's in-
state private equity investment program. The pension fund has comm itted $298 million to 11 private equity
managers located throughout New York Stale. The prograrnprovides market rate returns to the State
Hevesi, Bruno, Rei lly Announce ' tate Pen sion h illel Invest ment in Upstate Finn
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Founders Equity, a $140 million New York City-based private equity firm, is one of the Retirement Fund's
newest partners in this program. Found ers Equity seeks to invest ill small to middle market companies
nationw ide with an nual earnings betwe en $2 million and $15 million. The Retirement Fund's $20 million
co mmitment has be en dedic ated to a separate, affiliated fund that will be invested only in New York Slate-
based comp anies .

Clifton Park-based OST was found ed in 1991 and focuses on providing Vol P, data, voice. security and -
wirel ess services to-schools in upstate New York -and long Island. OST also focuses on local and federal
government agencies, hospitals and commercial accounts.

"Since launching its VolP business in 2001, OST designed and installed over 20 large scale VolP systems
validating OST's position as a regional leader in the Vol P market.' said OST President I<en Canastar.
"OST has 56 emp loyees who deliver integration services on small and large implementation projects
throughout New Yo rk State." .

Albany Phone: (5 18) 474-4 0 15 Fax:(5 18) 473-6940
~JYC Phone: (212) 68 1-4825 Fax:(212) 68 1-4-4 68
Inlern et: hl1p://\WNI,osc.slale.ny .us
E-Mail:gress@o sc.slate.!