News

NEWSPRING CAPITAL LEADS $6mm INVESTMENT IN PROFITPOINT

Radnor, PA – March 8, 2007– NewSpring Capital’s NewSpring Ventures II L.P. announced today the completion of a $6mm equity investment in ProfitPoint, Inc. NewSpring Ventures II L.P. led the investment and was joined by Clayton Associates in the financing round. ProfitPoint plans to use the proceeds to strengthen the Company’s balance sheet and provide the necessary working capital to execute the Company’s growth and acquisitions strategy.

ProfitPoint is a growing player in the rapidly expanding gift and loyalty card industry. The Company focuses on helping its client customers to grow their business through state of the art card-based programs. A Fall 2006 Deloitte & Touche study stated that in the 2006 holiday shopping season, the gift card was expected to be one of the top purchases, with 66% of consumers estimated to buy at least one gift card. ProfitPoint is positioned to take a growing share of this market through the expansion of its sales and marketing staff. The Company has offices in Havertown, PA and Nashville, TN.

“We are thrilled about our investment in ProfitPoint,” stated Glenn Rieger, General Partner of NewSpring Capital. Mr. Rieger added, “ProfitPoint meets all of our key investment criteria. The Company is part of a large, growing and highly fragmented market; their proven business model is attractive and the senior management team is highly experienced and motivated to build on their success.”

Vaden Landers, CEO and Founder of ProfitPoint added, “This is a great opportunity for ProfitPoint to leverage the knowledge of its new equity partner, NewSpring Ventures. The recent highly successful sale of Ecount, a NewSpring Capital portfolio company in the stored value card market, proves that the NewSpring team knows how to extract value from businesses in our industry.”

About ProfitPoint

ProfitPoint, Inc., with offices in Havertown, PA and Nashville, TN, is a payment services company that markets value-added, non-cash payment products and services to small and medium-sized retailers and restaurants. The Company was founded in November 2003 by several veterans of the payment services industry to take advantage of the growing number of merchants that have not been offered affordable stored value card solutions by their existing payment processing partners. The Company's primary products are gift and loyalty card programs designed to increase customer traffic, generate incremental sales, encourage repeat business, and reduce the risk of shrinkage and exposure to fraud. For more information about ProfitPoint, visit www.rewardforloyalty.com.