USBX Launches Washington, D.C. Office to Expand Homeland Security Practice.

WASHINGTON -- USBX Advisory Services, LLC, a leading investment bank to the security and government services markets, has announced the opening of a new location here to further expand the firm's presence in the government and homeland security markets.

Stephen Ritterbush, Managing Director, will lead the new location with assistance from Managing Director James R. Stone, a new member of the USBX team. The two will build out USBX's D.C.-based practice to service the rapidly expanding Homeland Security and Government IT Services practice areas.

"This new location positions us at the epicenter of decisions being made today in the Homeland Security market," according to John E. Mack III, Founder and CEO of USBX.

According to statistics from USBX research, new government contracts and accelerating technological adoption continue to drive the security Mergers & Acquisition market. For Q3 2006, security M&A activity totaled 281 transactions, an increase of 80 percent compared with Q3 2005, including deals as diverse as the $1.3-billion private equity acquisition of Intergraph by Hellman & Friedman and Texas Pacific Group, the $1.3-billion acquisition of Internet Security Systems by IBM and Siemens' Building Technologies' acquisition of video analytics firm VistaScape Security Systems.

"With its influence on buying decisions and increasing mandates, Washington and the Department of Homeland Security are having a material impact on not just the U.S. security market but a direct effect on the entire security industry worldwide," Ritterbush said.

The new location, in McLean, Va., is USBX's first office outside its Santa Monica, Calif., headquarters.

About the team:

With more than 26 years of M&A and finance experience, Managing Director Stephen Ritterbush will lead the firm's efforts in the government sector. Ritterbush, who has either formed or invested in more than 35 companies, is also Managing Partner of the investment firm Fairfax Partners, a company he founded in 1989. He has also served as a senior corporate officer and a director of ICF Kaiser International, Inc. and as President and CEO of Arthur D. Little Far East, Singapore. Ritterbush earned his undergraduate degrees from Union College; an M.S. from the East West Center of the University of Hawaii; and an M.A. and Ph.D. from the Fletcher School of Law and Diplomacy of Tufts University. In addition, he was awarded a Rockefeller Foundation Fellowship for study at the Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University.

James R. Stone joins USBX as a Managing Director. Stone's experience in the M&A and financing market spans 19 years, during which he has closed transactions ranging in size from $5 million to $4 billion. Previously, he founded Converge Capital, a specialty firm focused on transactions and proprietary deal sourcing in the technology, outsourcing and IT services sectors. Prior to that he was a Partner or senior executive with several other Investment Banks including Montgomery Securities and Citicorp Leveraged Capital. His operating background includes serving as Vice President - Corporate Development at Affiliated Computer Services (NYSE: ACS), a leading BPO and IT outsourcing firm. He also practiced corporate law with the firms of Kirkland & Ellis and Hale and Dorr and was an Adjunct Professor at the Boston University Graduate School of Management. Stone is a graduate of the Boston University School of Management and Columbia Law School. He received his MBA in Finance from the University of Texas at Austin.

Gavin Long, vice president of research for USBX, is also located in the Washington office. Most recently with Arthur Andersen Research and its spin-off, Capstone Partners, as the lead technology analyst for Andersen Worldwide, Long has focused on Homeland Defense and Public Safety and has authored numerous reports on the industry. He has more than eight years of investment banking experience, more than 50 middle-market transactions and an intimate knowledge of the security technology buyer community. Long has an advanced research degree from Duke University and has conducted post-graduate research at Harvard University.

The new location here will also play host to USBX's premier event, the Homeland Security Investor Conference, a private, invitation-only event to be held Tuesday, Dec. 5, 2006 at the Ritz-Carlton, Washington, D.C. Founded by USBX, CapitalSource and Civitas Group, three leading companies in the investment banking, commercial finance and strategic consulting markets, HSIC provides a forum for premier, middle-market companies in the government and defense industries to network and meet with business and financial leaders. Presenting companies include, among many others, ObjectVideo, RAE Systems, Allied Defense and L-1 Identity Solutions. To learn more, visit www.hsiconference.com.

About USBX Advisory Services, LLC

USBX Advisory Services, LLC is a leading boutique Investment Bank providing Mergers & Acquisitions, institutional Private Placement and related Strategic Advisory services to middle-market companies and private equity groups. The USBX value proposition centers on delivering true 'wall street' level transaction skills and deep domain knowledge complemented by industry operating experience. The firm has built a strong reputation in the Security, Technology, Consumer, and Business Services sectors as well as a solid foundation of general experience in serving clients in any industry. USBX Partners leading the firm are former industry executives or major bracket senior investment bankers that have managed and negotiated over 500 transactions including engagements involving some of the most successful corporations and private equity groups in the world. USBX is a NASD and SIPC Member, with offices in Los Angeles and Washington, D.C. For more information, visit http://www.usbx.com.