HFS Private Equity Partners LLC Announces First Closing of the HFS Capital Private Equity Fund LLC.

Business Editors

RESTON, Va.--(BUSINESS WIRE)--Nov. 1, 2002

$25 Million Fund Will Focus On Mezzanine and Expansion Capital for

Mature High Growing Businesses

The Managing Directors of HFS Private Equity Partners LLC are pleased to announce the first closing of its second private investment fund, HFS Capital Private Equity Fund LLC.

The Fund is targeted at $25 million and was formed to provide specialized private equity financing to companies offering compelling business and consumer products and services. The Fund will invest in mature companies with existing profitable business models, strong experienced management teams, and competitive market positions that seek short or intermediate term debt or preferred equity financing in connection with expansion and acquisition activities, leveraged buy-outs, recapitalizations or bridges to a liquidity event. The Fund has already identified several prospective investment opportunities.

In addition, the Fund intends to apply for a license to operate as a Small Business Investment Company ("SBIC").

"With the tightening of the credit markets and solid growing companies looking for capital, we are excited about the opportunities this second fund brings. We continue to have excellent deal flow of companies that fit the criteria of this fund and look to capitalize on these opportunities," said Larry Hoffman, Chairman and Managing Director of HFS Private Equity Partners LLC.

About HFS Private Equity Partners LLC

HFS Private Equity Partners LLC is a private equity firm and currently manages the HFS Venture Fund I LLLP and the HFS Capital Private Equity Fund LLC. HFS Private Equity Partners LLC is affiliated with HFS Capital LLC (www.hfscapital.com), an investment banking firm serving middle market and emerging growth companies in equity and debt private placements, mergers and acquisitions, management buyouts, leveraged buyouts, recapitializations, reverse mergers and providing other corporate advisory services.

Headquartered in Reston, Virginia, HFS Capital LLC is a licensed broker dealer and member of the National Association of Securities Dealers (NASD). HFS Private Equity Fund Partners LLC is also affiliated with HFS Consulting LLC, a professional services firm providing an array of corporate finance and business advisory services.