DH Capital Advises Hosted Solutions, LLC

April 20, 2006; 01:11 AM
DH Capital, LLC, an investment banking firm serving the media, Internet and telecommunications industries, announced today that it served as exclusive financial advisor to Hosted Solutions, LLC in securing $4,950,000 in equity capital from a group of private investors.

Founded in 2001 and headquartered in Raleigh, North Carolina, Hosted Solutions is a leading provider of enterprise managed hosting solutions. The company operates three state-of-the-art data centers in Cary, Raleigh and Charlotte, North Carolina. Hosted Solutions has been recognized for the past two years as one of the NC FAST 50, distinguishing it as among the state's 50 fastest growing privately held companies.

"DH Capital has worked with Hosted Solutions since its founding more than four years ago. The company has enjoyed exceptional growth in revenue and profitability over this time," said Peter Hopper, President of DH Capital. "Having worked with Rich Lee and his team on several capital raises, we have seen first hand how exceptional facilities and outstanding customer service combine to provide great value to their customers. Given the strength of the Company's balance sheet and the team's incredible focus on satisfying customers, we look forward to helping Hosted Solutions continue their exceptional growth."

Rich Lee, Chief Executive Officer of Hosted Solutions stated, "We are incredibly pleased with the growth Hosted Solutions has achieved. Our success is the result of our dedicated employees who are truly focused on delivering superior service to our customers every hour of every day. We are gratified by the continued support of our shareholders and we are particularly thankful for the help and assistance that DH Capital has provided to us over these past four years. We look forward to continuing our close relationship with DH Capital."

About Hosted Solutions
Hosted Solutions provides complete and customized managed and dedicated web hosting solutions to more than 300 clients. Hosted Solutions offers unmatched technical expertise in best practices and best-of-breed technologies, as well as flexible and scalable packages and a la carte services. For more information about Hosted Solutions' offerings contact sales@hostedsolutions.com, call 919-852-0690 in the Triangle, 704-423-9174 in Charlotte, or visit www.hostedsolutions.com.

About DH Capital, LLC
DH Capital is an investment banking partnership serving the media, Internet and telecommunications industries. Based in New York, the firm's principals have extensive experience and proven abilities in capital formation, finance, research, business development and operations. DH Capital provides a full range of advisory services to companies and financial institutions including private placements, mergers & acquisitions, financial restructuring, and operational consulting. The principals of DH Capital have led hundreds of transactions including mergers & acquisitions totaling in excess of $10 billion, private equity placements totaling more than $1 billion, and debt placements totaling in excess of $10 billion.