PRESS RELEASE

NextStage Capital Raises $25 Million Seed and Early Stage Venture Fund

Firm Exceeds Fundraising Goal, Actively Seeks Seed and Early Stage Companies to Add to Existing Portfolio

Audubon, PA – December 4, 2007 – NextStage Capital, L.P., which invests mainly in seed and early-stage technology companies in the mid-Atlantic region, announced it raised $25 million for its initial fund. The fundraising exceeded expectations and allows NextStage to continue building momentum in helping visionary entrepreneurs build high growth, high impact seed and early stage technology companies.

NextStage Capital, based in suburban Philadelphia, focuses on investing in early stage Mid-Atlantic technology companies run by talented, proven entrepreneurs. Investing began shortly after its first close in 2006, and the fund currently has six portfolio companies. With more than 60 years of collective experience in entrepreneurship, investing, organizational development, sales and marketing, NextStage's managing partners include Rob Adams, Dan McKinney and Terry Williams. In addition, the fund advisory board boasts industry veterans such as Doug Alexander of Internet Capital Group, Fred Beste of Mid-Atlantic Venture Fund, Phil Smith, founder of Citicorp Ventures, and Bruce Luehrs, formerly of Edison Ventures.

"We are pleased that our investors, led by Ballamor Capital Management, believe in NextStage's investment strategy, in our experienced team and in the promise of entrepreneurship throughout the mid-Atlantic region," said McKinney. "It's an exceptional time for early stage investing, and we are eager to deploy this capital to grow entrepreneurial businesses."

NextStage has integrated the services of TWC Group, a leading provider of human capital services and of which Terry Williams is also CEO and founder. Through this integration, NextStage offers recruitment consulting as an added value. Portfolio companies have direct access to TWC's recruitment services and expertise at no cost – a critical differentiator in a market where the right executive or team has significant impact on a company's growth and success.

"Having analyzed this asset class and reviewed many providers in this space, we were impressed with NextStage Capital's unique investment model that not only provides capital, but also helps portfolio companies fill gaps in their leadership teams with proven talent that will accelerate high performance," said Doug Kloppenburg, president of Ballamor Capital Management. "Investing with NextStage enhances the diversification of assets within our client portfolios, in addition to a good risk/return trade-off and a powerful vehicle for tapping into the early stage venture capital market. We look forward to watching and participating in their success going forward."

NextStage Capital's portfolio currently consists of:

• RCD Technology, a leader in producing specialty and low-cost RFID solutions based on proprietary technologies and manufacturing processes,
• Magnify Networks, a platform for businesses and users to create special interest online channels of user generated video,
• HardMetrics, a developer of business process performance management software with initial application in the call / contact center market segment,
• Agilence, a provider of event-based Video Analytics (eVA) solutions to the retail, transportation and gaming industries,
• HxTechnologies, a healthcare services and information technology company that helps payers and providers improve clinical care and significantly cut costs with HXT's proprietary, virtual repository of medical images and tests, and
• Orbos, a social media platform that brings together individuals to provide a convenient and effective way to create and share information across an unlimited number of online social communities.

About NextStage Capital
NextStage Capital, L.P. is an early stage venture capital fund focused on investing in undiscovered software and hardware technology and/or services companies in the Mid-Atlantic region. NextStage Capital's investment approach is to find entrepreneurs with solid track records who offer a unique and powerful value proposition to customers in growing market sectors. In addition to providing strategic counsel, NextStage Capital offers its portfolio companies value-added recruiting services at no charge through its partnership with TWC Group, a recruitment process outsourcing company with more than a decade of building management teams for many of the region's most successful venture-backed companies. For more information on NextStage Capital, please visit www.nextstagecapital.com. Information on TWC Group can be found at www.twcgroup.com.