Unregistered Securities Volume up 140% According to NYPPEX

Business Wire,  June 24, 2008  

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GREENWICH, Conn. -- Secondary private transaction volume for unregistered securities in U.S. private companies increased approximately 140% to $3 billion as compared to $1.25 billion in 2006, according to a recently released research report from NYPPEX Private Markets.

"This significant increase was primarily due to supply from venture funds seeking exits and secondary stock sales from private companies in 144A private equity market venues such as Goldman Sachs TrUE, NASDAQ Portal and NYPPEX," states Laurence G. Allen, Managing Member of NYPPEX.

New sources of liquidity for the secondary private markets included hedge funds, funds of funds and publicly-traded business development companies.

"The recent boom in company buyouts has helped spur demand for private stock sales," said David Brophy, professor of finance at the University of Michigan. "Restricted shares are also commonly used in executive compensation."

The value of new private placements of unregistered stock, or 144A transactions, reached $162 billion, outpacing the $154 billion raised in initial (and secondary) public offerings in 2006, according to the NASDAQ Stock Market.

144A private placements are restricted to qualified institutional buyers with at least $100 million of assets and are often a quicker, easier and less expensive alternative to an IPO.

"It is a new market in the sense that more and more companies are availing themselves of this exemption from the registration requirements in the United States," states Rick Hendrix, Chief Operating Officer of FBR Capital Markets.

To request a copy of the NYPPEX Secondary Private Markets Overview 2007 report, please contact NYPPEX at 203-422-5000 x220 or by email at inquiries@nyppex.com.

FORWARD LOOKING STATEMENTS

The information contained in this press release may contain forward-looking statements. These forward-looking statements are subject to inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements.

ABOUT NYPPEX

Since 1999, NYPPEX has offered specialized private listing, trading, investment banking, research, market data and other financial services for unregistered equity and debt securities in private companies, interests in private partnerships and illiquid receivables.

NYPPEX provides its customers access to over $12 billion in global private market liquidity through approximately 146 institutional members (as of March 31, 2008). NYPPEX provides proprietary, real-time bid indications on over 14,000 unregistered securities in private partnerships and private companies headquartered in 54 countries. NYPPEX is headquartered in Greenwich, CT. For more information, please visit www.nyppex.com.

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