Waterside Exits Publisher Investment

Capital, guidance were important to publisher's success

Jul 13, 2007, 01:00 ET from Waterside Capital Corporation

    NORFOLK, Va., July 13 /PRNewswire-FirstCall/ -- Waterside Capital
 Corporation (Nasdaq:   WSCC) announced that one of its clients, Fairfax
 Publishing Company, bought back its 18% warrant for a negotiated price of
 $500,000, and has successfully exited the investment.
     It marks the second time in less than a month that the region's only
 SBIC has successfully concluded a profitable investment. Last month,
 Waterside exited an eight-year investment with AnswerNet by selling back
 its remaining 1% warrant. AnswerNet is a leading telecommunications company
 headquartered in New Jersey.
     Waterside president Martin Speroni said, "It's very rewarding to see a
 company like Fairfax Publishing use venture capital to grow faster than its
 internal cash-flow-generating capacity would have allowed and become a
 relevant and profitable business."
     Waterside invested a total of $1.75 million in Fairfax Publishing. The
 first advance came in 1999, one year after Fairfax Publishing opened for
 business. The capital was used to launch "The Senior Source" magazine in
 Hampton Roads and Central Virginia.
     A second investment allowed Fairfax Publishing to acquire five
 magazines in North and South Carolina, now called "The Senior Living
     In accordance with the agreement, Waterside's investment was repaid in
 full, including fees and periodic dividends.
     "Waterside Capital was instrumental in moving us forward," says Bob
 O'Malley, president & CEO of Fairfax Publishing Company. "They were
 straight forward, understood our business, and brought good business sense
 to the table -- not just money. They also helped us with the acquisition
 evaluation for the five magazines in the Carolinas."
     Leaders from both companies are available for comment at:
         Martin Speroni, President, Waterside Capital Corporation
         (757) 626-1111 ext. 302 or david@rourkpr.com
         Bob O'Malley, President & CEO, Fairfax Publishing Company
         703-421-2003 or david@rourkpr.com
     Waterside Capital Corporation (http://www.watersidecapital.com) is a
 Small Business Investment Company (SBIC), headquartered in Norfolk,
 Virginia with a portfolio of approximately $28.3 million of loans and
 investments in 19 companies located primarily in the Mid-Atlantic region.
 Waterside Capital's individual investments range from $500,000 to over $3
     Fairfax Publish Company is headquartered in Fairfax, Virginia, and
 addresses senior housing and related services through magazines in
 Virginia, North and South Carolina, and Florida, and an interactive website
 at http://www.theseniorguide.com.

SOURCE Waterside Capital Corporation