Allegiance Capital Opens Madrid Office.

Cross-Border Investment Banking Expanding in Hispanic Markets

DALLAS -- Allegiance Capital, a full-service Investment banking firm based in Dallas, Texas, has announced the opening of a new office in Madrid, Spain. The Madrid office offers a unique platform to provide cross-border investment banking services to public and private clients in Spain. Despite the growing global economic concerns, Allegiance Capital has identified significant opportunities for middle-market companies in Spain seeking acquisitions and investments throughout North America.

According to David Mahmood, chairman and founder of Allegiance Capital, the company has participated in numerous cross-border transactions with Spanish companies over the years, developing a strong understanding and appreciation for what it takes to close successful transactions with foreign companies. "Companies and investors in Spain are looking not only for financial opportunities in the United States, but a cultural fit. One out of every two Texans speaks Spanish. Culturally, there is a close alignment and relationship because of Texas' large Hispanic population. Spanish businessmen see this as an opportunity to tap into this huge market, and it is one they can relate to culturally."

Currently, Allegiance Capital is working with Grupo Arranz Acinas of Spain to develop multiple wind farms in Texas. Grupo Arranz Acinas, a privately held construction and real estate company based in Castilla y Leon, participates in and promotes numerous renewable energy projects in Spain. Allegiance Capital's Renewable Energy Group, offering opportunities ranging from green field to projects in full production, has been a valuable partner to Grupo Arranz Acinas in helping facilitate its investments into the United States.

The Madrid office will be comprised of a professional team from both Spain and the United States led by Spanish-American investment banker and Managing Partner, Mr. Wilson Hudkins Caceres, CFA. Hudkins has two decades of experience in emerging and developed capital markets in the Iberian Peninsula, United States and Latin America. He founded Hesperia Advisors, S.L., a boutique investment firm involved in numerous energy and real estate transactions, and has worked for ABN AMRO, Fortis and Interdin Corporate Advisors in positions ranging from head of capital markets to managing director of investment banking. Hudkins is joined by Mr. Jesus Arranz Monje, Partner at Allegiance Capital's Madrid office. Arranz is the Deputy General Director for Grupo Arranz Acinas, and has been involved in the diversifying process and international development of the company for more than 10 years. He has been directly involved in more than fifty real estate, construction and energy projects and is a member of the board for several financial organizations, institutions and private companies in Spain. Rounding out the Madrid office, several professionals from Allegiance Capital's Dallas and New York offices will join the team to provide expertise in the North American markets as well as additional personnel from Spain.

According to Mahmood, Allegiance Capital understands the current economic conditions in Spain and throughout Europe. "The present financial market is not one where many businesses are investing and taking an expansionist viewpoint. Allegiance Capital believes that these very tough times financially represent an opportunity to bring quality advisory services to privately held and closely held middle market companies," said Mahmood.

"While other firms are retrenching, Allegiance Capital believes that the demand for its services will be needed to an ever greater degree. The economic and market problems facing the U.S. also confront Spain. With the globalization of economies it becomes more important than ever for middle market firms to be able to receive good advisory services with competent bicultural and bilingual advisors who understand not only local needs but the global changes taking place in the financial market. For Spanish companies looking to grow, now is the time to make acquisitions. Pricing will probably never be better for investors seeking the numerous cross border transactions that are currently available," commented Mahmood.

"The new office in Madrid demonstrates Allegiance Capital's ongoing growth and commitment to expand its reach and services for its clients worldwide. The company continues to strengthen its positions in a number of vertical markets including wind and solar energy, infrastructure, healthcare and financial services. Led by a highly qualified and experienced management team that is extremely well connected in the Spanish business community, the Madrid office is poised to bring considerable value and opportunities for Allegiance Capital's clients," said Mahmood. David Mahmood and David Lonsdale, president of Allegiance Capital Corporation, will be in Spain at the end of February to meet with companies that are interested in cross-border investment opportunities in North America.

Allegiance Capital Corporation Spain offices are located at Calle de Velazquez 157, 4B 28002 Madrid, Espana.

About Allegiance Capital:

Allegiance Capital Corporation is a full-service investment banking firm specializing in the middle market (companies with revenue from $20 million to $500 million), with offices in Dallas, New York, Minneapolis/St. Paul, Vancouver, British Columbia, Shanghai, Tel Aviv and Madrid. Through its worldwide network, Allegiance Capital assists companies in every aspect of selling and financing a business, including debt restructuring, mezzanine financing, buy out management, strategic partnering, consulting and other related services. Through its newly created Special Situations group, the Company handles financial restructuring and distressed mergers and acquisitions. For more information, refer to the company website at www.allcapcorp.com.