New Century Equity Holdings Corp. Announces Preliminary Agreement to Settle Shareholder Litigation.

DALLAS -- New Century Equity Holdings Corp. (OTCBB: NCEH) ("NCEH") announced today that it reached an agreement with all of the parties to the lawsuit filed by Craig Davis (the "Lawsuit") to settle the Lawsuit and all claims relating thereto. The principal terms of the settlement (the "Settlement") are as follows:

--NCEH's insurance carrier will contribute to a settlement fund (the "Settlement Fund") in connection with the Settlement and also reimburse NCEH for certain legal and professional fees, which will also be contributed to the Settlement Fund.

--Parris H. Holmes, Jr., the former Chief Executive Officer and a former director of NCEH will contribute $150,000 to the Settlement Fund.

--Counsel for the plaintiff in the Lawsuit has requested payment of $935,000 for fees and expenses relating to the Lawsuit from the Settlement Fund and the defendants in the Lawsuit have agreed not to object to the award of such fees and expenses.

--The balance in the Settlement Fund after payment of legal fees to counsel for the plaintiff is estimated to be approximately $2.26 million, which amount will be distributed to stockholders of NCEH after the final approval of the Settlement by the Delaware Chancery Court. The former directors of NCEH who were parties to the Settlement will not be entitled to receive any distributions from the Settlement Fund.

As part of the Settlement, each of the parties has agreed to a release of claims in connection with the Lawsuit. Approval of the Settlement by the Delaware Chancery Court is expected to take two to four months.

Through March 31, 2006, NCEH had incurred approximately $1.6 million in legal and professional fees in connection with the Lawsuit in excess of the $500,000 retention provided for under NCEH's insurance policy. NCEH plans to vigorously pursue reimbursement for the legal and professional fees which NCEH's insurance carrier has not yet agreed to reimburse.

Some statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of NCEH to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Refer to NCEH's filings with the Securities and Exchange Commission for further discussion of such factors. The forward-looking statements are made as of the date of this press release and NCEH assumes no obligation to update such statements.