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NEW VENTURE FUND FORMED IN VERMONT BY BROOK VENTURE PARTNERS AND THE VERMONT ECONOMIC DEVELOPMENT AUTHORITY (VEDA)

May 9, 2006

FOR IMMEDIATE RELEASE:

Montpelier, VT - The Vermont Economic Development Authority (VEDA) and Brook Venture Partners announce the formation of Vermont Capital Partners (VCP), a new mezzanine capital fund enabling investment of up to $15-$20 million in Vermont companies seeking expansion capital. The fund will operate out of the VEDA office in Montpelier.

In 2004, as part of the Douglas Administration's jobs development package, VEDA obtained Legislative approval for a plan to use $2 million in public funds to leverage additional private investment in a new public-private venture capital fund. Brook Venture Partners of Wakefield, Massachusetts was selected by VEDA as its investment partner after a formal and rigorous qualifying search.

"The Vermont business community is seeking fresh new options for this type of capital," said Jo Bradley, VEDA's Chief Executive Officer. "We are pleased and excited to have found an outstanding firm of the caliber of Brook Venture Partners with whom to offer this financing opportunity. Brook brings the right combination of imagination, experience, and connections to Vermont."

"We attracted excellent applicants from within and outside of Vermont," Bradley noted. "However, Brook was the only Small Business Investment Corporation (SBIC) licensee among the candidates, which brings the benefit of multiplying the capital available for investment in Vermont. Brook's license allows it to operate as an SBIC and access low cost capital from the SBA to invest in growing companies." Under the SBIC program, Brook can obtain an additional $2 for every $1 invested in Vermont Capital Partners, L.P.

"We are delighted about our partnership with VEDA and the opportunity to bring fresh capital to businesses in Vermont," said Andrew Clapp, partner with Brook Venture Partners, a firm with ongoing business and financial activity in Vermont. "Investing in Vermont fulfills one of our fund's primary goals of investing in underserved markets."

Clapp will lead Brook's investing activity in Vermont. In addition, Brook Venture partners Fred Morris, Ned Williams, and Walter Beinecke will actively meet with and review prospective investments in Vermont.

For more information about VEDA, call 802-828-5627 or visit www.veda.org. For more information about Brook Venture Partners, call 781-295-4000 or visit www.brookventure.com.



Contact Information:
Jo Bradley
Chief Executive Officer
Vermont Economic Development Authority (VEDA)
802.828.5627


58 East State Street
Montpelier, VT 05602
Tel. 802-229-2922