CapitalKey Advisors First to Provide Small Business With Private Capital Solutions - At Internet Speed.

NEW YORK--(BUSINESS WIRE)--Dec. 2, 1999--

Company Combines Sophisticated Technology With Traditional

Investment Banking

To Offer Efficient Access To Capital;

Unique Incentive System Offers Up To 15% For Referrals

For the first time, entrepreneurs can now go online to access the private equity markets - with all the advantages of traditional investment banking expertise. CapitalKey Advisors, www.capitalkey.com, is the first Internet investment bank to blend cutting-edge Web technology and traditional investment banking services to provide emerging businesses with professional advice and reliable access to private capital. The CapitalKey approach is risk-free to the business owner because compensation is paid only upon completion of a transaction. Plus, CapitalKey provides a first-of-its-kind incentive system for successful business referrals. Business executives referring transactions to CapitalKey share up to 15 percent of any transaction fees.

CapitalKey's technology makes it unique in the private equity investment banking market. First, it maintains an extraordinarily extensive, proprietary database of venture capital and private equity funds, allowing it to quickly identify synergistic and motivated investors for companies with sales under $100 million. The strong relationships CapitalKey professionals maintain with these investors facilitate transaction success. Second, the company's use of the Web streamlines the entire investment banking process, providing small business owners with professional advice and access to capital previously available only to larger businesses. CapitalKey offers the personal advisory services of a traditional bricks-and-mortar investment bank on an as-needed basis to assist and advise the business owner throughout the process.

Managed by two Wall Street veterans, Neal D. Goldman, formerly of Lehman Brothers, and Steven B. Turner, formerly of Bear, Stearns & Co., CapitalKey aims to forge the investment banking standard for the vastly underserved small business market. By using the Internet, the firm automates the process to maximize the volume of transactions at minimal additional expense.

"For most small companies, finding capital is confusing and chaotic, since these deals aren't big enough to attract the attention of the large investment banks," Goldman said. "We aim to be the investment banker for the small business venture capital and private equity market. We offer business owners an easy, automated process combined with Wall Street experience, contacts and professional advice. For venture capital and private equity funds, we cut through the clutter by providing targeted deal flow matching their specific investment strategies."

The CapitalKey Process Locates Qualified Investors Within One

Week

CapitalKey revolutionizes the way small businesses approach the venture capital and equity market. Business owners simply go to the CapitalKey Web site, apply to become a client, and send their company information online directly to CapitalKey. Upon receipt, a CapitalKey investment banker reviews the information. Using CapitalKey's unique database, the investment banker utilizes proprietary software and algorithms to match businesses with potential investors and scores them on their likelihood for success. This database holds detailed information on several thousand institutional venture capital and private equity investors, breaking each down categorically - by industry, preferred investment characteristics, and details of present as well as past portfolio holdings. For example, if the company seeking funding is in the precise industry subcategory and geographical location that a venture capital or private equity fund seeks to invest in, or if the fund already has an investment in a similar company, then the match will be scored higher than if it only matched by general industry classification.

Within three business days of the initial inquiry, a CapitalKey investment banker determines viability, and replies to the business owner searching for capital. The investment banker then e-mails the business owner a user name and password that the business owner can use to access a secure, personalized CapitalKey Web page dedicated to his or her transaction. This Web page is the business owner's tool to quickly and easily communicate with CapitalKey, provide information and documents investors need, and follow the status of the transaction.

CapitalKey typically delivers a targeted list of potential investors - via the Web - within one day of the company's signing a letter of engagement. Once this list is approved, potential investors (i.e. the managers of venture capital and private equity funds) are alerted to the opportunity, and they too can sign-on to a secure, personalized Web page to get further information, such as a business plan, financial model or management presentation.

"Because of the efficiencies we gain in using technology in every step of the process, we are delivering value to both the seller and the buyer, and doing it more quickly than ever before," said Turner.

Risk-Free Engagement Model For Small Businesses

CapitalKey's atypical advisory fee structure is designed so business owners pay only for results. CapitalKey does not charge a retainer fee and is compensated only in the event that a client closes a transaction with an investor that the firm identified first. In addition, CapitalKey does not require the entrepreneur to maintain an exclusive relationship with the firm, freeing clients to pursue all available alternatives.

"We level the playing field for capital-hungry small businesses," Turner said. "We offer proven Wall Street experience, coupled with immediate access to a real universe of potential investors, delivered at Internet speed."

Creative Referral System

CapitalKey also offers an innovative incentive system for referrals from those to whom entrepreneurs typically turn for advice - their accountants, attorneys, and other business executives. Typically, the first step business owners take in their search for capital is to consult these trusted advisors regarding what to do. CapitalKey not only offers significant incentives to these "referrers" - up to 15% of CapitalKey's success fee but also shares compensation received from other successful transactions resulting from others they have referred.

"We believe the referral fee makes this a win-win-win situation for all parties involved - the small business, the investor and the referrer. Accountants, lawyers, or anyone can provide their clients, business acquaintances, and even friends, with a solution to find the capital they need," Goldman said.

CapitalKey Advisors, LLC, www.capitalkey.com, is the Internet investment bank that leverages the Web to provide small and emerging companies with professional advice and efficient access to capital. CapitalKey strives to be the most effective venture capital and private equity solution for small businesses.

Activities requiring brokerage registration will be performed by CapitalKey Advisors' broker-dealer affiliate, CapitalKey Securities, LLC.