[December 09, 2008]

Saints Capital and Rustic Canyon Partners Form New Fund to Acquire Nineteen Secondary Interests; Saints Acquires Interest in Eight Companies in a Separate Strip Transaction From Rustic

SAN FRANCISCO --(Business Wire)--

Saints Capital, a leading secondary direct investment firm, and Rustic Canyon Partners, the largest southern California based venture capital firm, today announced that they have formed Saints Rustic Canyon, L.P. to acquire interests in nineteen different companies formerly held by Rustic Canyon Ventures, L.P. Saints also purchased shares from Rustic Canyon Ventures SBIC, L.P. in eight portfolio companies, structured as a strip purchase of 20% of the Fund's position in each of the companies.

"These two transactions underscore Saints' unique capabilities to provide liquidity to sellers through innovative structures," said Ken Sawyer, managing director of Saints Capital. "We provided liquidity to the single limited partner in Rustic Canyon Ventures, L.P. by acquiring the LP interest. In the strip transaction, we purchased a percentage of the shares held by Rustic in each company, thus generating liquidity for that fund."

Saints is the leading global investment firm focused solely on the acquisition and management of venture capital portfolios on a secondary basis. These activities assist sellers who are seeking to obtain immediate liquidity for their investment stakes or to minimize future investment requirements in private equity. Saints remains committed to partnering with sellers to meet their objectives while providing portfolio companies with the necessary follow-on capital and a stable, long-term committed investor base.

"Our first fund was supported by a single investor who wanted to rebalance his asset allocation. This investor remains the largest investor in our second and new third fund that closed in October. After much deliberation, we found the right partner in Saints to meet the needs of our LP, our portfolio companies and the Rustic team. With this transaction, we have fresh capital to support our companies' growth plans," said Tom Unterman, managing partner of Rustic Canyon Partners. "Importantly to us at Rustic Canyon, we will continue to manage the investments and support the great management teams we funded years ago."

About Rustic Canyon Partners

Rustic Canyon Partners invests in exceptional entrepreneurs who are turning ideas into transformational companies. The investment team works collaboratively, drawing on a diverse set of experiences as successful entrepreneurs, managers, and strategic and financial advisors. With over $800 million in funds under management, Rustic Canyon is one of the largest venture capital firms based in Southern California.

About Saints Capital

Saints Capital is a leading direct secondary acquirer of venture capital and private equity investments in emerging growth companies around the globe. Saints also makes traditional direct venture capital investments on a primary basis and in special situations in technology, healthcare, consumer and industrial companies in the United States. Saints is headquartered in San Francisco, with investment professionals throughout Europe and Asia. Saints currently manages funds with investments in over 175 individual companies totaling approximately $3.0 billion in originally invested capital. www.saintsvc.com

Portfolio Companies Involved

The 19 entities include Archom Technology, Astea International, Auxora, Cooking.com, iCopyright, EM4, Foodlink Online, HyperQuality, Jo-Ann Stores, JRJK, Internet Brands, LoopNet, MediaSpan Group, NanoNexus, ODS-Petrodata, PC On Call, Serious Materials, US Renewables Group and Visto Corporation. The eight companies are Capella Photonics, Fulcrum Bioenergy, Intrepid Learning Solutions, Serious Materials, SiliconSystems, Transonic Combustion, Trion World Network and Untangle.

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