02-13207. Notice Seeking Exemption Under section 312 of the Small Business Investment Act, Conflicts of Interest

Notice is hereby given that Zero Stage Capital SBIC VII, L.P. (“ZSCVII”), 101 Main Street, 17th Floor, Cambridge, Massachusetts 02142, a Federal Licensee under the Small Business Investment Act of 1958, as amended (“the Act”), in connection with the financing of a small concern, has sought an exemption under section 312 of the Act and section 107.730, Financings which Constitute Conflicts of Interest, of the Small Business Administration (“SBA”) rules and regulations (13 CFR 107.730 (2002)). ZSCVII proposes to provide equity financing to HydroCision, Inc. (“HydroCision”), 100 Burtt Road, Suite G01, Andover, Massachusetts 01810. The financing is contemplated for product production and working capital.

The financing is brought within the purview of Section 107.730(a)(1) of the Regulations because Zero Stage Capital V, L.P., an Associate ZSCVII, currently owns greater than 10 percent of HydroCision, and therefore HydroCision is considered an Associate of ZSCVII as defined in Section 107.50 of the Regulations.

Notice is hereby given that any interested person may submit written comments on the transaction to the Associate Administrator for Investment, U.S. Small Business Administration, 409 Third Street, SW., Washington, DC 20416.

Dated: May 20, 2002.

Harry Haskins,

Acting Associate Administrator for Investment.