LRG Capital Group Celebrates Inaugural Year Highlighted by Successful and Diverse Transactions, and Growing Team

LARKSPUR, CA, Dec 21 (MARKET WIRE) --
LRG Capital Group LLC, a global merchant bank specializing in private equity,
real estate and secured debt financing, as well as financial-advisory
services, reported today it enjoyed a strong inaugural year, with activities
ranging from successful investments in the life sciences and technology
sectors to advising on both the successful merger of semi-conductor companies
and
the placement of upscale American retail brands in the Gulf Cooperation Council
(GCC). Citing its geographic and industry breadth, and emerging economic
conditions
that favor its investment model, the company said it expects more
opportunities and strong growth in 2008.

"During 2007, we leveraged our strong cash position to opportunistically
capitalize on
macroeconomic uncertainty," said Lawrence ("Larry") Goldfarb, founder and CEO of
LRG Capital Group. "Our contrarian investment theses, combined with rapid due
diligence and decisive investment activity, enabled us to foresee the tightening
credit market and take advantage of more realistic valuations for quality
investment opportunities across a number of sectors. We have a substantial
pipeline of investment deals and advisory projects, and we believe our track
record of providing relationship-focused guidance and financing is resonating in
the
marketplace."

LRG Capital Group manages the BayStar Capital III Investment Fund, through
which
it began making investments in July 2007. The fund is managed by Goldfarb,
whose previous funds -- BayStar Capital I and BayStar Capital II -- have
collectively invested more than $1.5 billion of equity in more than 250
companies.

"Our success lies in keeping it simple," said Goldfarb. "We make direct
investments in companies in the life sciences, technology, media and
communications sectors that we clearly understand; and we have the discipline
to consistently walk away from the deals that won't provide downside protection
and the potential for a significant equity upside.

"Diversification is a critical component of our absolute-return investment
strategy
for the fund. We place a premium on exploiting market inefficiencies with the
belief that each public or private company we invest in is ripe for a
significant value-creating event that we will capitalize upon. Regardless of
what the market is doing, we believe that certain companies will perform in an
unaffected manner. Our strength lies in identifying those companies and
aggressively structuring deal terms for a 'win-win' for all parties,
especially our investors."

2007 Highlights

LRG Capital Group has had the following successes across its four
business
units:

Corporate Advisory Services
-- Advised Exar Corporation on its $242-million successful merger with
semiconductor maker Sipex Corporation.
-- Retained to advise a major Gulf Cooperation Council (GCC) company on
the continued negotiation and placement of upscale American retail
brands in GCC countries.

BayStar Capital Funds
-- BayStar Capital III provided subordinated, convertible debt financing
to GlassHouse Technologies Inc., a Massachusetts-based IT
infrastructure consulting company, and convertible preferred financing
in VirtualScopics, a premier provider of quantitative image-based
solutions for clinical trials in the biotech sector.
-- BayStar Capital II sold its stake in Reliant Pharmaceuticals Inc. in an
all-cash acquisition by GlaxoSmithKline, resulting in a significant
return for BayStar Capital II.

Real Estate Ventures
-- Became one of the first and largest investors in Island Global Yachting
(www.igymarinas.com) and Yacht Haven Grande, IGY's centerpiece marina
in St. Thomas, USVI. IGY is one of the world's premier owners,
developers and managers of luxury marinas and yachting lifestyle
destinations, with the latest marina being built on the Palm Jumeirah,
Dubai.
-- Provided debt financing to SD Mega Block LLC to support the
construction of a mixed-use commercial-residential development project
in San Diego.

Commercial Ventures
-- Invested in and formed a strategic alliance with broker-dealer firm
Arque Orion Group, which operates Avalon Shonan Securities Co. Ltd. in
Tokyo. The union allows LRG Capital Group and Arque Orion to take
advantage of respective strengths, relationships and distribution
channels.
-- Invested in Om Records, a music lifestyle company with a diverse
catalog of thousands of music copyrights. Om's core business activities
include music marketing, publishing, merchandising and licensing.

LRG Capital Expands Leadership Team

Growing its management team (http://www.lrgcapital.com/public/team.php) in
2007, the global merchant bank features a strong team of investment
professionals
with significant experience in their respective disciplines.

-- Lawrence ("Larry") Goldfarb, founder and CEO of LRG Capital Group and
portfolio manager of the BayStar Capital Funds. With more than 20 years of
investment banking, trading and legal experience, Goldfarb is recognized as
a leading expert on making direct investments in private and public
companies. He specializes in bridging the financial needs of growth
companies by making direct investments and structuring transactions that
enable them to grow and provide competitive returns for investors. Goldfarb
began his career as a tax attorney with the law firms of Milbank Tweed
Hadley & McCloy and thereafter with Skadden Arps Meagher & Flom, where he
provided tax analysis in connection with a wide variety of complex
transactions, including financings, mergers and recapitalizations.
Subsequently, he joined Credit Suisse First Boston Corporation as a Partner
and Director of Mergers and Acquisitions. In 1998, Goldfarb formed BayStar
Capital Management LLC, with which he funded growth-oriented, small
capitalization and publicly traded companies. He received his J.D. cum
laude from Georgetown Law School, where he was on the Law Journal and
published numerous articles. Goldfarb earned a Bachelor of Arts degree in
international economics from George Washington University.

His investment team includes:

-- Evan A. Kraus, J.D., partner, executive vice president, legal affairs.
Kraus brings extensive legal, investment and banking experience to LRG
Capital Group. Previously, he was an officer of Tamalpais Bank, a
subsidiary of the publicly traded Epic Bancorp. As well, he has advised and
served as legal counsel to other corporations including American Century
Services Corp., Charles Schwab & Co., NetSource Communications and IASCO.
Kraus received his J.D. law from Emory University School of Law and a
Bachelor of Arts degree from Brandeis University.

-- Eric J. Bentley, M.B.A. & C.P.A., principal, technology investments.
Previously, Bentley was a director in the Technology, Media and Telecom
group for Cowen and Company LLC, where he led a mergers and acquisitions
advisory effort for growth-oriented, small capitalization and publicly
traded technology companies. During the past decade, Bentley has provided
financial advisory services for various technology companies in
transactions that aggregate to more than $60 billion in value. He received
an M.B.A. with distinction from the Wharton School of the University of
Pennsylvania and a B.A. cum laude from Harvard University.

-- Paul D. Enderle, M.B.A., managing director, life sciences investments.
Before joining LRG Capital, Enderle worked for GE Capital, where he
originated more $300 million of investments and financings, and served in
many other finance-related functions for the General Electric Company for
more than a decade. He received an M.B.A. from Babson College, Summa Cum
Laude, and a B.S. degree in engineering from the University of
Massachusetts.

-- Nathan W. Randel, CFA, principal, trading and portfolio management.
Randel brings 11 years of investment and banking experience to LRG Capital
Group. Prior to joining LRG Capital, he was assistant portfolio manager for
GM Capital Group, and an investment manager for the Pure Alpha Relative
Value Fund, where he researched and modeled arbitrage trading strategies,
and managed the fund's risk, capital allocations and operational
infrastructure. Randel is a CFA Charter holder and is an active member of
The CFA Institute and The CFA Society of San Francisco. He received his
Bachelor of Arts in business management from Lynchburg College.

-- Rekha Angepat, M.F.E & Ph.D., principal, risk management and
securities valuation. Prior to joining LRG Capital, Angepat worked on
treasury function projects in the Capital Markets Group at Microsoft
Corporation. A graduate of the Master of Financial Engineering program at
Haas School of Business, U.C. Berkeley, Angepat has been recognized for her
work through a number of research grants and awards. She earned her
undergraduate degree with honors in mathematics from University of Calicut,
India, earned a Master of Science and Ph.D. in mathematics from India's
Cochin University of Science and Technology.

A Focus on Philanthropy

Goldfarb is also an active philanthropist. He serves on the boards of
several charitable and non-profit foundations including Ambassadors of
Hopeand Opportunity and the Blue Bear School of American Music. Through LRG
Capital Group, he is a major contributor and sponsor to the Scleroderma Research
Foundation, The Mill Valley Film Festival and the Drug Policy Alliance. Stemming
from his passion for aiding underprivileged youth, the arts and technology,
Goldfarb continues to be a major contributor to Room

to Read, The Lower Eastside Girls Club, and world-renowned FIRST (For
Inspiration & Recognition of Science & Technology), for which he recently funded
three school teams in Marin County, Calif.
(http://www.lrgcapital.com/public/pressreleases/pr_20071203_first_marin.php)

Goldfarb also owns and sponsors the LRG Racing team, which competes in
events sanctioned by the American Federation of Motorcyclists and other racing
organizations.

About LRG Capital Group LLC

LRG Capital Group LLC (www.lrgcapital.com) is a global merchant bank
specializing in private equity, real estate and secured debt financing, as
well as financial-advisory services, to a diverse range of publicly traded and
private companies. With offices in San Francisco, New York and Miami, the firm
represents companies on equity and debt placements, restructurings,
recapitalizations, management buyouts and other strategic alternatives. LRG
Capital
is the investment manager for the BayStar Capital family of investment funds.
Additionally, the firm invests in and owns various entertainment interests, as
well as U.S. and foreign real estate assets including derivative interests in
real estate securities and real estate development projects and properties.

Contact:
Greg Jones
The Blueshirt Group
415-217-4964
Email Contact

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