Waterside Capital Announces Earnings Release

Feb 14, 2008, 00:00 ET from Waterside Capital Corporation

    NORFOLK, Va., Feb. 14 /PRNewswire-FirstCall/ -- Waterside Capital Corp.
 (Nasdaq:   WSCC), a Small Business Investment Company (SBIC), today reported
 financial results for the six months ended December 31, 2007.
     The company's net increase in stockholders' equity resulting from
 operations (which includes net operating income plus realized and
 unrealized gains or losses on investments) was $161,000 or $.08 per share
 for the six months ended December 31, 2007, compared to a decrease of
 $1,707,000 or $.89 per share for the six months ended December 31, 2006.
 The per share performance was calculated using weighted average shares
 outstanding of 1,915,548.
     The company prepaid $5.3 million of SBA debenture debt with an average
 of 8.4% interest rate in September 2007, which will reduce interest expense
 and improve operating performance. Management continues to focus on expense
 control, harvesting investments, and ramping up business development
 activities to generate new, risk appropriate investments.
     At December 31, 2007, Waterside's loans and investments had a fair
 value of $21.6 million compared with $21.2 million reported at June 30,
 2007. For the six months ended December 31, 2007, the company originated
 new investments of $5.1 million and received proceeds from sale of
 investments and principal collected on notes receivable and debt securities
 of $3.8 million. This compared to the company's funding of $1.8 million in
 new investments for the six months ended December 31, 2006, and receiving
 proceeds from the sale of investments, principal collected on debt
 securities, and proceeds from collection of notes receivable of $3 million.
 The net asset value of the common shares increased to $5.04 per share at
 December 31, 2007 from the $4.95 reported at June 30 2007. The increase in
 net asset value was due to the above mentioned $161,000 increase in
 shareholders equity resulting from operations.
     About Waterside Capital Corporation
     Waterside Capital Corporation is a Small Business Investment Company
 (SBIC) headquartered in Norfolk, Virginia with a portfolio of approximately
 $21 million of loans and investments in 16 companies located primarily in
 the Mid-Atlantic region. Waterside Capital's individual investments range
 from $500,000 to over $3 million. Visit Waterside's web site at
     Except for historical information, all of the statements, expectations
 and assumptions contained in the foregoing are "forward-looking statements"
 including Waterside's optimism regarding the growth of its portfolio
 companies (within the meaning of the Private Securities Litigation Reform
 Act of 1995) that involve a number of risks and uncertainties. It is
 possible that the assumptions made by management -- including, but not
 limited to, investment opportunities, results, performance or
 expectations-may not materialize. Actual results may differ materially from
 those projected or implied in any forward-looking statements. In addition
 to the above factors, other important factors including the risks
 associated with the performance of the Company's portfolio companies,
 dependencies on key employees, delays, interest rates, the level of
 economic activity, and competition, as well as other risks described from
 time to time in the Company's filings with the Securities Exchange
 Commission, press releases, and other communications.
WATERSIDE CAPITAL CORPORATION Financial Summary (In thousands except per share data) Six Months Ended December 31, 2007 2006 Statement of Operations data: Total operating income $1,262 $1,076 Interest expense 703 855 Other operating expenses 604 1,120 Net operating income (loss) (45) (899) Realized gain (loss) on investments 146 (1,078) Change in unrealized appreciation (depreciation) on investments 60 270 Net increase (decrease) in stockholders' equity resulting from operations $161 $(1,707) Per share data (basic): Net operating income (loss) $(0.02) $(0.47) Net increase (decrease) in stockholders' equity resulting from operations $0.08 $(0.89) At December 31, At June 30, Balance Sheet data: 2007 2007 Cash $3,673 $9,569 Loans and investments, at fair value Debt securities 6,528 9,332 Equity securities 9,328 5,966 Options and warrants 2,066 2,343 Notes receivable and other 3,728 3,571 Total loans and investments 21,650 21,212 Debentures payable 16,100 21,400 Stockholders' equity 9,650 9,489 Net asset value per common share $5.04 $4.95

SOURCE Waterside Capital Corporation