FOR IMMEDIATE RELEASE

Natural Convergence secures additional CDN$2M in follow-on financing
Series "A" round investment strengthens to$11.3M

OTTAWA, Canada - October 15, 2002 - Natural Convergence Inc., a pioneer of Broadband communications software for Telecom Carriers, announced today that Desjardins Venture Capital Group has made an investment in the company of CDN$2M. The original investment round of CDN$9.3M was announced in July 2002. Desjardins Venture Capital Group joins recent investors Boston-based VIMAC, and Canadian-based BDC Venture Capital, as well as early investors Primaxis Technology Ventures Inc., Jefferson Partners and Purple Angel.

The company also announced today the appointment of Desjardins Venture Capital Group's General Manager for Eastern Ontario, Peter Nadeau, to the company's Board of Directors.

"This additional funding represents another vote of confidence in our technology, business model, and go-to-market strategy," said David Cork, Chief Executive Officer, Natural Convergence. "Small business has always been an important segment to carriers, but in today's economy, they provide the surest path to restoring growth in revenues and profits. We are unique in recognizing and solving the complex challenges that Carriers face in servicing the needs of small business".

The small business market generates over $200B in recurring annual service revenues for Carriers in North America alone. In spite of the aggregate size of this market and their track record of high customer loyalty, this segment has often been neglected by traditional equipment vendors.

Natural Convergence has developed innovative technology that enables Carriers to deliver a compelling bundle of voice services, data services, and web services over a single broadband connection. The solution is inexpensive to deploy, increases revenues and improves operating margins. Most importantly, this robust solution addresses the hidden economic barriers by dramatically reducing the costs of customer acquisition, order fulfillment and customer support.

"We seek investment opportunities based on the strength of the leadership team combined with world leading technology," said Peter Nadeau, General Manager, Eastern Ontario, Desjardins Venture Capital Group. "We are impressed with the company's business model and customer traction to date. We look forward to participating in this exciting period of growth as Natural Convergence pursues this impressive market opportunity".

Natural Convergence has delivered Beta trial product into lab trials with their lead customer, and is negotiating unique partnerships with leading vendors of IP Phones, IP/PSTN Gateways and carrier-grade server platforms.

About Natural Convergence
Natural Convergence is an Ottawa based software company that develops and markets Broadband communications software to Telecom carriers, enabling them to better serve their small business customers. The company was founded in April 2001 by former Nortel executives, David Cork and Mark Murray, in partnership with bitHeads, Inc., a premier custom software development company.
www.naturalconvergence.com

Desjardins Venture Capital Group
Desjardins Venture Capital Group is the venture capital fund management arm of the Mouvement des caisses Desjardins. It manages the assets of ID, a limited partnership, the six Investment Desjardins regional funds, as well as Capital régional et coopératif Desjardins, a public fund whose assets under management are projected to reach $1.5-billion over the next ten years. More than a financial partner, Desjardins Venture Capital Group makes its network and expertise available for businesses in their startup, growth and expansion, as well as their plans for mergers, acquisitions or public offerings. More than 140 companies are already associated with Desjardins Venture Capital Group www.desjardins.com.

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