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Brookside Technology Announces Successful Recapitalization.

Vicis Capital Assumes Senior Credit Facility and Sub-Debt Note

Vicis Invests Additional $2.5 Million In Equity

TAMPA, Fla. -- Brookside Technology Holdings Corp. (OTCBB OTCBB

See OTC Bulletin Board (OTCBB).
: BKSD BKSD Bennett Kielson Storch DeSantis and Company, LLP (White Plains, NY) ), a provider of converged VoIP, data, video and wireless business communications systems, today announced that Vicis Capital Master Fund ("Vicis"), has purchased and assumed from Hilco Financial, LLC (Logical Link Control) See "LANs" under data link protocol.

LLC - Logical Link Control
 ("Hilco"), Brookside's senior secured lender, and Dynamic Decisions Growth Premium Fund ("Dynamic"), Brookside's subordinated lender, all credit agreements, loans and promissory notes under which Hilco and Dynamic had loaned money to the Company.

Furthermore, Vicis has provided to Brookside an additional equity infusion of $2.5 million through the purchase of 2,500,000 shares of series A convertible preferred stock Convertible Preferred Stock

Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares".
, which are convertible into common stock at $.03 per share. Proceeds of the private placement will be used to support future acquisitions and for general working capital.

With this latest $2.5 million equity investment, in addition to the prior $3 million in equity funding Equity funding

An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund.
 provided to acquire U.S. Voice & Data in September 2007, as well as the assignment of the various debt facilities to Vicis, Vicis has increased its combined debt and equity position to over $13 million. Vicis also owns a warrant position, that if exercised, could provide an additional $10 million in cash to the company.

Mr. Michael Nole, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "We are quite pleased to have completed this recapitalization during this challenging time for the credit markets and financial institutions. Over the past six months, our business has continued to grow by leveraging the products and services of our respective subsidiary companies, while also generating strong cash flow. Moreover, this latest financing provides the company solid footing to accelerate our acquisition strategy as we target complementary businesses at attractive valuations that allow us to fully leverage our infrastructure and capabilities. We believe that Vicis' commitment to Brookside illustrates its confidence in our business model, management team and outlook for the business.

About Brookside Technology Holdings Corp

Brookside Technology Holdings Corp., through its subsidiary companies, is a leading provider and global managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality  company specializing in analyzing, designing, selling, and implementing converged Voice over IP (VoIP), data, video, and wireless (Wi-Fi) business communications systems. Brookside offers a unique portfolio of products and services that solve today's telecommunications challenges by combining technology, business, and financial solutions. Brookside's customers include both commercial and state/government organizations of all types and sizes throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company seeks to grow organically and through the acquisition of complementary businesses looking to capitalize on the highly specialized growth market of providing turnkey converged voice and data solutions. With a proven track record of acquiring profitable businesses at attractive valuations, Brookside plans to leverage its expanding capabilities and combined customer bases of its portfolio companies. Additional information on the company can be found at www.brooksideus.com.

About Vicis Capital Master Fund

Vicis Capital Master Fund, is a multi-strategy hedge fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long"  which as of June 1, 2008 has in excess of $4.5 billion assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing.  across a range of strategies.

Forward-Looking Statement forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
: Except for factual statements made herein, the information contained in this press release consists of forward-looking statements that involve risks and uncertainties, including the effect of changing economic conditions, customer acceptance of products and other risks and uncertainties. As previously disclosed in its SEC filings, such forward-looking statements are not guarantees of performance, and the Company's results could differ materially from those contained in such statements. These forward-looking statements speak only as of the date of this release, and the Company undertakes no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.
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Publication:Business Wire
Date:Jul 22, 2008
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