Dh Capital Advises Defender Technologies Group, Llc On Private Placement

[TomK]

DH CAPITAL ADVISES DEFENDER TECHNOLOGIES GROUP, LLC ON PRIVATE PLACEMENT

NEW YORK, NY & BOULDER, CO - July 12, 2006 - DH Capital, LLC, an investment banking firm serving the media, Internet and telecommunications industries, announced today that it served as exclusive financial advisor to Defender Technologies Group, LLC in securing a private placement of equity and debt capital from a group of private investors.

Founded in 2001 and headquartered in Ashburn, Virginia, Defender Technologies Group, which does business as PowerVPS, is a leading provider of virtual private server hosting solutions. Defender Technologies Group has been recognized by SWsoft for its highly successful implementation of SWsoft's Virtuozzo server virtualization products.

"DH Capital has worked closely with Defender Technologies Group over the last year. The Company has enjoyed exceptional growth in revenue and profitability over this time," said Peter Hopper, President of DH Capital. "Having now worked with Tom ****** and Charles ******, Defender's founders, we have seen first hand how the right products and outstanding customer service combine to provide great value to their customers. Given the strength of the Company's balance sheet and the team's incredible focus on satisfying customers, we look forward to helping Defender Technologies Group continue their exceptional growth."

Thomas ******, Chief Executive Officer of Defender Technologies Group stated, "We are incredibly pleased with the growth Defender Technologies Group has achieved. Our success is the result of delivering great service and value to our customers. That is our mission every day. DH Capital has been instrumental in helping us access funding to fuel our growth. We look forward to continuing our close relationship with DH Capital."

About Defender Technologies Group, LLC
Defender Technologies Group, operating as Defender Hosting and PowerVPS, provides a range of web hosting solutions, including shared and dedicated hosting, gaming, virtual private servers and colocation. Defender Technologies Group offers unmatched technical expertise in best practices and best-of-breed technologies, as well as flexible and scalable packages and a la carte services. For more information about Defender Technologies Group's offerings contact sales@powervps.com, call 1-888-5-SERVER or visit www.PowerVPS.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.

[SludgeMeister]

Not completely sure what that means but it sounds good! :D

Congrats guys!

T.

[curtis.summers]

Press Release investment legalese speak. Blah.

I think this basically means that a group of private investors have invested in Defender Technologies. That's what private placement is. DH Capital helped Defender obtain the private investors.

FYI: private placement (http://en.wikipedia.org/wiki/Private_placement)

[nhdonny]

It means the next step, a year or two down the road, is Defender going public. I hope at that time the loyal customers are offered discounted shares.:D

Sadly, the usual routine is.

1 - Company treats customers great and grows incredibly fast.
2 - Company goes public
3 - Founders cash in and buy Ferraris and yachts
4 - Wall street demands quarterly profit increases
5 - Company squeezes the same loyal customers
6 - Once great service becomes mediocre
7 - Once loyal customers head for the exit
8 - New customers wonder what was so great
9 - Once great host gets bought by Global 100 for 10 cents on the dollar
10 - Company changes "Brand" name and Defender joins the scrap heap of tech history

But maybe these guys are different! :rolleyes:

[TomK]

It means the next step, a year or two down the road, is Defender going public. I hope at that time the loyal customers are offered discounted shares.:D

Sadly, the usual routine is.

1 - Company treats customers great and grows incredibly fast.
2 - Company goes public
3 - Founders cash in and buy Ferraris and yachts


Gonna have to stop at 3, as I would never fit in a Ferrari and I'm not a fan of boats.

The customers are what made (making Defender and PowerVPS), and as long as I am around to make a difference, it'll always remain that way, no matter who our investors are, etc.


:D

[Chris]

For what it's worth I think the first thing you need to do with the recent infusion of capital is give Rob and Charles a raise.

[elix]

For what it's worth I think the first thing you need to do with the recent infusion of capital is give Rob and Charles a raise.
Oh I'm sure they already have quite a nice salary considering Charles is CTO and Rob is Support Manager ;)

[jeremy]

Well this is great news guys.
I hope Defender keeps growing but maintains the customer service and I hope in the future you guys implement phone support.