News

NewSpring Capital Leads Mezzanine Investment in Emtec, Inc.

RADNOR, PA - August 17, 2011 - NewSpring Capital, a family of private equity funds providing growth and expansion capital to the Mid-Atlantic region, announced today that NewSpring Mezzanine, the dedicated mezzanine fund of NewSpring Capital, has invested $10 million of mezzanine debt financing in Emtec, Inc. (OTCQB: ETEC) ("Emtec" or the "Company"). The proceeds are being used to repay senior debt, fund the acquisition of Emerging Solutions and for ongoing growth initiatives.

Emtec, Inc., based in New Jersey, provides IT solutions such as consulting, applications, cloud and infrastructure services. Emtec's customers are primarily large business organizations, local school districts, departments of federal, state and local governments within the U.S. and Canada, and other large and mid-sized companies throughout the U.S. and Canada. Emerging Solutions LLC ("Emerging") is an IT consulting company, based in Chicago, IL, that focuses on enterprise performance management and has broad capabilities and deep technical expertise in market-leading technologies (e.g., Oracle, Hyperion, PeopleSoft, Microsoft, and Salesforce.com) as well as expertise in business process management. This acquisition significantly enhances Emtec's portfolio of services, commercial client base, and talent pool while strengthening Emtec's position in the Midwest region of the U.S.

Greg Chandler, Chief Financial Officer of Emtec, stated, "We are very happy to have found a partner who will be able to grow with us as we continue our expansion across the U.S and globally. We were impressed with the speed and diligence of NewSpring and are looking forward to their financial and strategic advice as we move into 2012."

Steve Hobman, General Partner of NewSpring Mezzanine, commented, "We are very excited to be able to become a long-term partner with Emtec for its continued growth. We believe the Company's management team brings a great deal of expertise and experience to the IT Services Market, and we are excited about the new capabilities Emerging Solutions brings to the Company. Management has positioned themselves to move Emtec's name into the frontlines of the IT consulting and outsourcing market. We are looking forward to helping them grow."