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Glenn T. Rieger Joins NewSpring Capital

NewSpring Capital adds a Philadelphia venture industry veteran to position itself for a decade of continued growth

Embargoed for October 8, 2004

King of Prussia, Pa., October 8, 2004 — NewSpring Capital, a $200 million family of
venture capital funds focused on investments in the Mid-Atlantic region, today announced that Glenn T. Rieger will be joining the firm as a General Partner of
NewSpring Capital, and a Managing Partner of NewSpring Ventures II. Rieger will join
an experienced management team that has successfully built NewSpring Capital, a family of three private equity funds—NewSpring Ventures I, NewSpring Mezzanine Capital, and NewSpring Healthcare. Rieger comes to NewSpring Capital from Cross Atlantic Capital Partners, a venture capital firm with over $400 million under management, where he was a Managing Partner.

Rieger will join industry veterans Michael A. DiPiano, Marc R. Lederman, and
Brian G. Murphy as a General Partner of NewSpring Capital. Rieger will also serve as a Managing Partner of NewSpring Ventures II, a new venture capital fund providing equity capital for growth and expansion stage companies throughout the Mid-Atlantic region, to be launched in early 2005.

“Glenn will play a significant role on multiple fronts to help shape the NewSpring
Capital family of funds, including deal sourcing, leveraging industry contacts, and fund raising. A professional with an investment track record and network as strong as Glenn’s will help facilitate the successful launch of our next fund,” says DiPiano.

“NewSpring Capital is growing an impressive group of funds, and I’m thrilled to
be joining their skilled management team,” says Rieger. “NewSpring Capital has been one of the most active fund families in the Philadelphia market over the last fifteen months by launching two new private equity funds, closing on six new investments, profitably exiting two portfolio companies, and recognizing significant unrealized gains in its two public portfolio companies. I’m looking forward to continuing the firm’s success, and spearheading the growth of NewSpring Ventures II into one of the region’s premier expansion-stage funds.”

Rieger, who recently served as Chairman of the Greater Philadelphia Venture
Group, the region’s leading venture capital association, has been involved in over 75
private equity investments since 1994. While at Safeguard Scientifics (NYSE: SFE), and Cross Atlantic, Rieger and the principals of NewSpring Capital were co-investors on numerous deals, forging successful working relationships—a legacy of success expected to continue well into the future.

“We are extremely excited about adding an investor of Glenn’s character and
reputation to our team. Just as important as Glenn’s past successes and track record is the fact that having known and worked with him for years, we know he will fit with NewSpring Capital’s culture,” added Murphy.

“Glenn has been an important contributor to the success that Cross Atlantic has
enjoyed,” says Donald R. Caldwell, Chairman and Founder of Cross Atlantic Capital
Partners. “Glenn and I have enjoyed a 20-year working relationship, and I am delighted for him that this opportunity has developed. Cross Atlantic wishes Glenn the best of luck and looks forward to a positive investment relationship with him and his NewSpring colleagues.”

The NewSpring Capital family has more than doubled its capital under
management over the past twelve months, from $90 million to over $200 million. During that time, NewSpring Capital added significant depth and talent to its team, bringing in four other new partners and a Chief Financial Officer.

In December of 2003, New Spring Capital added Zev S. Scherl, formerly of
Pequot Ventures and Behrman Capital, and Joseph A. Williamson, most recently the
Chairman and CEO of Brandywine Senior Care Inc., to launch Commerce Health
Ventures under the NewSpring Capital umbrella. NewSpring Healthcare is a
healthcare venture fund focused on life sciences, medical devices, and healthcare service companies.

In addition, Steven D. Hobman, a 20-year banking veteran and former Senior
Vice President of the Technology and Life Sciences Division of Comerica Bank
(NYSE:CMA), and Andrew Panzo, former Chairman and CEO of The Stonepath Group
(AMEX: STG), both joined NewSpring Capital in late 2003 to spearhead the formation of NewSpring Mezzanine Capital, a mezzanine private equity fund focused on later-stage and buy-out opportunities in information technology, healthcare, business services, and specialty manufacturing.

In April of 2004, NewSpring Capital added Jonathan S. Schwartz, formerly of
EnerTech Capital, as its Chief Financial Officer.

ABOUT NEWSPRING CAPITAL

NewSpring Capital, based in King of Prussia, PA, is a family of specific purpose private equity funds, with over $200mm under management, focused on the Mid-Atlantic region. The family of funds includes, NewSpring Ventures, L.P., a venture capital fund providing equity capital to growth and expansion stage companies with a focus on information technology, business services, and healthcare; NewSpring Healthcare, L.P. , a healthcare venture fund focused on life sciences, medical devices, and healthcare service companies; and NewSpring Mezzanine Capital, L.P., a mezzanine private equity fund focused on late stage and buy-out opportunities in information technology, healthcare, business services and specialty manufacturing.

NOTE TO PRESS:

Comprehensive resources are available for this story, including people and/or product photographs, company and/or product logos, executive interviews, industry sources, analyst contacts, answers to frequently asked questions, industry research and data, white papers, corporate and product briefs, and more. Please contact Tony Defazio at Gregory FCA Communications Inc., at 610-642-8253 or Defazio@GregoryFCA.com.
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