Hercules Technology's Portfolio Company, Interwise, is To Be Acquired by AT&T for $121 Million, Marking the Sixth Announced Acquisition of a Hercules Portfolio Company in 2007

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PALO ALTO, Calif.--(BUSINESS WIRE)--

Hercules Technology Growth Capital, Inc. (NASDAQ: HTGC), the premier specialty finance company providing venture debt and equity to venture capital and private equity backed technology and life science companies at all stages of development, today noted that its portfolio company, Interwise, a leading global provider of voice, Web and video conferencing services to businesses, has entered into an agreement to be acquired by AT&T Inc. (NYSE: T) for approximately $121 million in cash. The announcement of this transaction marks the sixth acquisition of one of Hercules' portfolio companies in 2007.

Hercules initially provided $3 million in venture debt financing to Interwise in September 2005 thus allowing the company access to growth capital without the dilutive effects of traditional venture capital. In addition, Hercules expects to report a realized gain from its warrant position in its fourth quarter financial results.

"The agreement of the acquisition of Interwise clearly demonstrates Hercules' ability to help our portfolio companies to grow and achieve important milestones through our extensive growth capital financing solutions as well as provide value to our investors through our warrant positions in portfolio companies," said Manuel A. Henriquez, co-founder, chairman and chief executive officer of Hercules. "We congratulate Interwise on this agreement to be acquired and the future opportunities it will bring to the company."

AT&T announced its agreement to acquire Interwise through one of its subsidiaries on October 1, 2007. The transaction, which is expected to close in the fourth quarter, strategically aligns Interwise's innovative IP-based conferencing and collaboration solution with AT&T's enterprise networking, communications and collaboration services, global MPLS-based IP network and its industry-leading conferencing portfolio of services.

Following the acquisition, the company will operate as a business unit within AT&T Global Business Services, which serves the largest enterprises around the world and is led by Group President Ronald E. Spears. AT&T expects to retain Interwise's management team and its domestic and international operations, including its R&D center in Israel.

About Hercules Technology Growth Capital, Inc.:

Hercules Technology Growth Capital, Inc. is a NASDAQ traded specialty finance company providing debt and equity growth capital to technology and life science companies at all stages of development. Founded in December 2003, the company primarily finances privately held companies backed by leading venture capital and private equity firms. Hercules invests in a broad range of ventures active in technology and life science industries and offers a full suite of growth capital products up and down the capital structure. The company is headquartered in Palo Alto, Calif. and has additional offices in the Boston, Boulder, Los Angeles and Chicago areas. Providing capital to publicly-traded or privately-held companies backed by leading venture capital and private equity firms involves a high degree of credit risk and may result in potential losses of capital. For more information, please visit www.HTGC.com. HT-HN

Companies interested in learning more about financing opportunities should contact info@HTGC.com, or call 650.289.3060.

About Interwise:

Interwise provides converged, IP-based conferencing solutions for enterprises. Its integrated voice, Web and video conferencing system has been repeatedly recognized by industry analyst firms and publications for its market-leading integration of VoIP- and TDM-based audio and its leadership in meeting the user and IT needs of large, global enterprises. In addition to offering on-premise and fully hosted conferencing, Interwise offers a unique, hybrid solution that allows enterprises to receive the cost and security benefits of on-site software with the rapid startup, geographic reach and capacity protection of its hosted service. With headquarters in Cambridge, Mass., Interwise today employs approximately 150 people and operates in the United States, Europe and Asia with offices in six countries.

Forward-Looking Statements:

The statements contained in this release that are not purely historical are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to uncertainties and other factors that could cause actual results to differ materially from those expressed in the forward-looking statements including, without limitation, the risks, uncertainties and other factors we identify from time to time in our filings with the Securities and Exchange Commission. Although we believe that the assumptions on which these forward-looking statements are reasonable, any of those assumptions could prove to be inaccurate and, as a result, the forward-looking statements based on those assumptions also could be incorrect. You should not place undue reliance on these forward-looking statements. The forward-looking statements contained in this release are made as of the date hereof, and Hercules assumes no obligation to update the forward-looking statements for subsequent events.

Source: Hercules Technology Growth Capital, Inc.

Released October 2, 2007