[2] Waterside Capital Corp. Signs Wall Street Investor Relations Corp.

NORFOLK, Va.--(BUSINESS WIRE)--Dec. 16, 1999--

Waterside Capital Corp. (Nasdaq: WSCC) announced today the signing of Wall Street Investor Relations Corp. (WSIR), a growing consulting firm that focuses on developing stock valuation campaigns as part of major corporate effort to increase the value of shareholders' investment in WSCC stock.

Alan Lindauer, President and CEO of Waterside Capital, said, "We strongly feel that our stock is undervalued and we have decided that this issue must be addressed on behalf of stockholders.

"Wall Street Investor Relations, Corp., a firm comprised of brokerage industry professionals, has a reputation of assessing fair market valuations and working with companies to develop and sustain appropriate trading levels. We recognize that our stock price reflects its relatively small market cap and float.

"Possible solutions to this problem are being evaluated by management, our Board of Directors, and WSIR and our plan will be announced in the near future."

"We need to increase investor awareness of Waterside Capital and where they are going, commented Joe Zappulla, President and Managing Director of Wall Street Investor Relations, Corp. Waterside has significant potential and has experienced strong top and bottom-line growth over the last year. We intend to communicate this investment theme to selected investment and hedge funds, as well as, retail and institutional sales forces in an effort to develop natural interest."

Waterside Capital Corporation is a publicly traded small business investment company (SBIC) headquartered in Norfolk, Virginia, with a portfolio of over $24 million of investments in twenty companies primarily located in the Mid-Atlantic region. Waterside has experienced a rapid growth in net operating income and assets under management since going public in January 1998.

Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are "forward-looking statements" (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, those relating to service offerings, market opportunities, results, performance or expectations--may not materialize. There can be no assurances that the Company's financial goals will be realized.

Numerous factors may affect the Company's actual results and may cause results to differ material. These risks are discussed in detail in the Company's 10-KSB, 10-QSB, or 8-K filings with the Securities and Exchange Commission.