Compass Capital Group Will Continue to Invest up to $10,000,000 for Acquisitions.

Business Editors

MANASSAS, Va.--(BUSINESS WIRE)--Nov. 4, 2003

Pacel, Corp. (Nasdaq:PACC) today announced that Compass Capital has completed the first $1 million investment of its committed $10,000,000.

Compass Capital Group reaffirmed today its commitment to provide Pacel, Corp. up to $10,000,000 in funding for growth of the company through sales and acquisitions.

The financings, which were accomplished at a modest discount to market with no reset or re-pricing provisions, have increased the company's cash position and provide the basis for its acquisitions.

"These financings were executed with favorable terms and helped us achieve what I consider to be the Company's strongest financial position since 2001, and have positioned us to move forward with our next series of proposed acquisitions," stated David Calkins. "We have a stronger cash position, are steadily reducing our debt, continue to reduce our operating expenses and will be increasing our revenue stream through continued growth and future acquisitions."

"We've seen positive results in recent quarters from our sales, marketing and business development efforts; we've introduced new and innovative technology; we've secured existing clients while aggressively pursuing important new clients; and we are involved in numerous business ventures with key partners," said David Calkins, Pacel, Corp. chairman and CEO. "By taking advantage of this opportunity to strengthen our capital structure, Pacel, Corp. is in a better position than ever to extend our recent positive momentum and continue to deliver the results that our customers and shareholders deserve."

The statements contained in this press release that are not historical facts are forward-looking statements that involve a number of risks and uncertainties. Therefore, the actual results of future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: (i) regulatory and tax developments; (ii) the effectiveness of the Company's sales and marketing efforts; (iii) changes in the competitive environment of the industry; (iv) changes in general economic conditions; (v) changes in the Company's direct costs and operating expenses; (vi) the estimated costs and effectiveness of capital projects and investments in technology and infrastructure; and (vii) Management's ability to effectively implement its business strategy. These factors are described in further detail in filings with the Securities and Exchange Commission.