mindSHIFT Technologies Receives $18 Million in New Financing

Fairfax, VA (August 29, 2006) mindSHIFT Technologies, a leading Managed Services Provider (MSP), announced today that it closed an additional $18 million in funding, with previous investors Columbia Capital of Alexandria, VA and Fidelity Ventures of Boston, MA participating in the round with a new investor, TD Fund of Washington D.C. mindSHIFT's investors see enormous potential in managed services for small- to medium-sized businesses, which are increasingly turning to MSPs to manage such critical services as email, servers, desktops, electronic backup, spam and viruses. "In our four geographic markets alone, there are nearly 100,000 enterprises with 20-250 employees.

That's an enormous total available market which will keep mindSHIFT growing for years to come," said Paul Chisholm, mindSHIFT Chairman and CEO.

Chisholm said the funds will help fuel mindSHIFT's expansion in the MSP market. "mindSHIFT will not only expand geographically through strategic acquisitions, but will also provide new IT products and services for small- and medium-sized organizations that will enable them to focus on strategic business applications which generate revenue growth," Chisholm said.

James Pastoriza, TD Fund Managing Partner, said "TD Fund's decision to join the new round of financing was due to the stellar financial performance of the company, its strong growth prospects and the deep expertise of the management team."

"The new investment signifies the confidence that investors have in the company and its business strategy," Chisholm said. "This optimism is due to the results of the company over the last several years and the prospects for continued growth with new products and services and geographical expansion with additional acquisitions."