Teledvance Announces Close Of $15 Million in Funding Led By MK Capital

LOUISVILLE, Ky.--()--June 30, 2005--Teledvance Communications, a leading provider of IT Communication Solutions, today announced it has closed on $15 million in funding, led by MK Capital, a Chicago-based venture firm. The funding also included investments from The Productivity Fund IV and private individual investors. It will be used to support a rapid expansion of Teledvance's industry leading IT Communication Solutions to small and medium-sized enterprises.

"After the past five years, we've completed the development of our now 'market-hardened' products and services, built a core base of very satisfied customers, and laid a strong overall foundation for our company," said Paul Borgman, Teledvance's chief executive officer. "The addition of this new funding enables us to execute our business plan of rapidly expanding our customer base and achieving our growth goals."

"We are now in a position to offer our clients a comprehensive set of IT Communication Solutions over one converged, nationwide, data, voice and video network," said Jeff Wellemeyer, Teledvance's chairman of the board and chief technology officer. "Over this next generation, IP-based network, we now offer our clients a very rich set of features, including advanced voice over IP services, collaboration tools such as video conferencing and unified messaging, and network operations, security and control applications. Obtaining these services from us frees up our clients' own IT staffs to focus on value-added applications specific to their businesses, instead of their communication infrastructures. This new capital infusion will enable us to more rapidly and effectively market these leading edge products to small and medium-sized enterprises across the country."

"As a firm that invests in technology companies that use existing technology to solve current business process inefficiencies, Teledvance is a natural fit for us," said Bret Maxwell, managing general partner of MK Capital. "High quality, IP-based, converged networks are a 'here today' technology that can supply all of a company's communications needs, often more efficiently than the company's current infrastructure. Teledvance has proven that it can supply these managed services, on an outsourced basis, to the small and medium-sized enterprises market. We're looking forward to the accelerated growth this new capital should enable Teledvance to achieve."

About Teledvance Communications

Teledvance Communications Corporation is the leading provider of IT Communication Solutions that help small and medium-sized enterprises businesses RUN! These solutions include: Dynamic Enterprise VOIP Services, Unified Messaging Applications and Group Collaboration Tools, all of which are delivered using Multi Protocol Label Switching (MPLS) across a private, IP-based network backbone.

The company stands alone as a true single provider of 'top-to-bottom' and 'end-to-end' IT Communication Solutions -- via an outsourced, managed services delivery model. Top-to-bottom: Teledvance provides and manages the nationwide, next generation, converged network infrastructure upon which the solutions run, as well as providing the solutions themselves. End-to-end: Teledvance custom designs, installs and provides ongoing 24/7 support for its solutions. This unique, 'comprehensive services delivery' approach enables Teledvance clients to enjoy the same advanced communication capabilities their larger competitors do, while minimizing upfront investment and freeing up client IT staffs to work on business-specific applications, thereby maximizing client IT Communication Solutions ROI.

Teledvance provides services nationwide, including converged enterprise VoIP solutions in 75 cities, encompassing over 3000 local calling areas. The company also delivers network services to organizations in 38 states. It has been serving customers nationwide for five years and has earned the Cisco Powered Network designation. For more information, visit www.teledvance.com or call 888-879-0113.

About MK Capital

MK Capital is a leading venture capital firm based in Northbrook, Illinois. The firm provides capital to help entrepreneurs in their quest to build successful businesses. MK Capital's team also recognizes that entrepreneurs are the essence of success. Team members have a passion for working collaboratively with management teams to jointly navigate the thrilling but dangerous waters of growth.

MK Capital's team has over 40 years of venture capital experience and a long history of investing and managing venture funds. In addition, each team member has previously been both an entrepreneur and a manager. The firm's members have advised dozens of companies as board members in a variety of economic cycles, industries and stages of development. Each team member plays an active role both in the Fund's investment activities and in assisting portfolio companies. For more information, please visit: www.mkcaptial.com.

Contacts

Teledvance Communications Corporation
Russ Maney, 502-315-5177
rmaney@teledvance.com

Contacts

Teledvance Communications Corporation
Russ Maney, 502-315-5177
rmaney@teledvance.com