NEW YORK, NY and BOULDER, CO -- (MARKET WIRE) -- 04/09/07 -- DH Capital, LLC, an investment banking firm serving the hosting and cable television industries, today announced the closing of $20,000,000 in senior credit facilities for Cervalis LLC ("Cervalis"). MCG Capital Corporation of Arlington, VA (NASDAQ: MCGC) provided the financing. Cervalis is a leading provider of high-end data center and managed hosting services.

"DH Capital did a great job in this process, working closely with the Company to find the best financing solution," stated Michael Boccardi, CEO of Cervalis. He continued, "We are very pleased to establish this relationship with MCG Capital. The additional capital will enable us to successfully expand our business strategy of providing high availability data center facilities and services to our clients."

"It has been our pleasure to work with Michael and the entire Cervalis team," stated Mark Thorsheim, Managing Director of DH Capital. "MCG is premier financial partner and highly experienced in assisting dynamic growth companies like Cervalis in financing their expansion strategies."

DH Capital served as exclusive financial advisor to Cervalis on the transaction.

About Cervalis LLC

Cervalis is a premier provider of IT infrastructure solutions including business continuity / rapid recovery, managed hosting, managed security, managed storage, networking & telecommunications and co-location. The company's skilled professionals, world-class facilities and outstanding customer support provide our clients with a secure IT environment that ensures business resilience.

For additional information about Cervalis please visit the company website at www.cervalis.com.

About DH Capital, LLC

DH Capital is an investment banking partnership serving the media, Internet and telecommunications industries. Based in New York, the firm's principals have extensive experience and proven abilities in capital formation, finance, research, business development and operations. DH Capital provides a full range of advisory services to companies and financial institutions including private placements, mergers & acquisitions, financial restructuring, and operational consulting. The principals of DH Capital have led hundreds of transactions including mergers & acquisitions totaling in excess of $10 billion, private equity placements totaling more than $1 billion, and debt placements totaling in excess of $10 billion.

For additional information on DH Capital, please contact us at 212-774-3720 or visit our website at www.dhcapital.com.

About MCG Capital Corporation (NASDAQ: MCGC)

MCG provides capital to support the growth and value creation strategies of small- to mid-sized companies. As a publicly traded Business Development Company (NASDAQ: MCGC), we offer highly customized financial solutions based on in-depth understanding of our portfolio companies' business requirements. Since 1990, MCG has delivered value for financial sponsors and operators in approximately 480 diversified financings representing cumulative investments of approximately $5.1 billion. Please visit the company's website at www.mcgcapital.com

Contact:
DH Capital
212-774-3720
www.dhcapital.com