Allegiance Capital to Open Twin Cities Office in Fall 2007.

Location to Serve the Thriving Midwest Business Community

MINNEAPOLIS -- Allegiance Capital Corporation, a full-service investment banking firm serving mid-market companies worldwide, announces the opening of its 7th office in the fall of 2007, located in Minneapolis-St. Paul. Coinciding with the new office, Allegiance Capital also announces the addition of Joe Chavez as vice president, who will oversee the Minnesota office operations and will concentrate on financial transactions throughout the Upper Midwestern U.S.

As a major commercial business center, the Twin Cities metroplex offers a strong and diversified business base with a growing need for business investing. For Allegiance Capital, Minneapolis-St. Paul's strategic location gives the company a tremendous opportunity to serve corporate entities in the expanding manufacturing, high tech, medical, food processing and graphic arts industries.

According to the MoneyTree report from PriceWaterhouseCoopers and the National Venture Capital Association, Minnesota experienced a sharp increase in venture capital investing during the second quarter 2007. A $65 million investment in CVRx Inc., a medical device company based in Maple Grove, Minn., was the third-largest venture capital deal in the nation during the second quarter. Overall, Minnesota had 14 transactions totaling $143 million during the quarter. This up tick in venture capital transactions was the highest level of activity since the third quarter of 2004.

"Minneapolis-St. Paul is home to 16 FORTUNE 500 corporations, 30 FORTUNE 1000 companies and a number of the world's largest private companies. With so many thriving businesses, investment by private equity buyout firms continues accelerating," said David Lonsdale, president of Allegiance Capital Corporation. "The Upper Midwest region is a business and financial hub that is primed for continued growth, and Allegiance Capital plans to aggressively initiate a number of mergers and acquisitions throughout the region in order to capitalize on this high level of economic activity. To manage this flourishing business environment, we partnered with Joe Chavez, a seasoned executive and Twin Cities native."

With more than 20 years of executive sales and marketing experience, Mr. Chavez, age 55, has successfully sold enterprise ERP software, outsourcing and professional services/consulting at major U.S. and European-based corporations. Based in St. Paul, his role will be to identify companies looking to expand primarily through mergers or acquisitions. According to Lonsdale, Mr. Chavez is well established within the business community, and has many years of experience in working across several industry verticals that will enable him to establish a well-balanced Allegiance Capital client base.

"As the largest business center in the Upper Midwest, the economy in Minneapolis-St. Paul is strong. With more than 1,300 technology-intensive firms, this region has one of the largest concentrations of high-technology business in the nation. Other traditional manufacturing, medical, processing and financial businesses are also expanding and are attracting the attention of investors," noted Chavez. "As the economy continues gaining momentum, I look forward to further penetrating the robust Twin Cities' business community while establishing Allegiance Capital as a premier middle-market investment banking firm for Midwest business owners."

Prior to joining Allegiance Capital, Mr. Chavez has been recognized for his entrepreneurial and innovative solutions in helping clients consolidate a high number of disparate management processes across seven different countries in three languages at a lower cost. In addition, he helped clients assess their current processes across finance, supply-chain and human capital disciplines to transform their businesses into world-class organizations.

About Allegiance Capital:

Allegiance Capital Corporation is a full-service investment banking firm specializing in the middle market (companies with revenue from $10 million to $500 million), with offices in Dallas, New York, Tulsa, Okla., Minneapolis/St. Paul, Minn., Vancouver, British Columbia, Shanghai and Tel Aviv. 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. Allegiance Capital differentiates itself by having deep industry knowledge, vast contacts with potential buyers, heavy investment in educating sellers and obtaining premium pricing for clients. Learn more about Allegiance Capital Corporation at www.allcapcorp.com.