Hercules Augments Its Technology Portfolio by Participating in $5 Million of Financing to PSS Systems

Financing Facilitates Rapid Growth of Legal Holds and Retention Management Software Leader

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

Hercules Technology Growth Capital, Inc. (NASDAQ: HTGC), a leading specialty finance company providing debt and equity growth capital to venture capital and private equity backed technology and life science companies, today announced that on March 21, 2007 it participated in providing $5 million of debt financing to PSS Systems, the leading provider of legal holds and retention management software. PSS is backed by Azure Capital Partners, Lightspeed Venture Partners, and other leading industry investors.

"Our investment in PSS represents the Company's desire to expand our portfolio of cutting edge technology companies. PSS fits into our strategy of identifying high growth companies operating in an exclusive market niche. PSS Systems' Atlas suite is the first and only solution that enables enterprises to synchronize retention, disposal, preservation, and production to reduce cost and risk," stated Sam Bhaumik, senior managing director at Hercules.

Deidre Paknad, president and chief executive officer of PSS Systems, said, "We are growing very rapidly as an increasing number of Global 500 leaders adopt our legal holds and retention management software. We believe this is the right time to implement a debt facility for use in accelerating that growth. The financing structure provided by Hercules gives PSS access to growth capital without diluting current ownership."

About Hercules Technology Growth Capital, Inc.:

Founded in December 2003, 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. The Company primarily finances privately-held companies backed by leading venture capital and private equity firms and also may finance certain publicly-traded companies. Hercules' strategy is to evaluate and invest in a broad range of ventures active in technology and life science industries and to offer a full suite of growth capital products up and down the capital structure to prospective clients ranging from early-stage growth to expansion stage companies. The Company's investments are originated through its principal office located in Silicon Valley, as well as additional offices in the Boston, Boulder 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. Companies interested in learning more about financing opportunities should contact info@HTGC.com, or call 650.289.3060.

About PSS Systems:

PSS Systems is the leading provider of legal holds and retention management software. The company's Atlas suite is the first and only solution that enables enterprises to synchronize retention, disposal, preservation and production to reduce cost and risk. Customers include Citigroup, Credit Suisse, First Data Corporation and market leaders in the pharmaceutical, oil and gas, consumer and insurance industries.

PSS Systems is a recognized leader on critical policy topics; it founded and sponsors the CGOC, an executive forum and professional community on practice issues related to retention and preservation. PSS Systems is privately held and is based in Mountain View, California. For more information, visit www.pss-systems.com.

PSS Systems and the PSS logo are registered trademarks, and Atlas LCC, Atlas Litigation Communications & Collections, Atlas ERM, Policy Atlas, Policy Point and AtlasIPM are trademarks of PSS Systems, Inc. All other company and product names mentioned are the trademarks or registered trademarks of their respective companies.

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 May 16, 2007