Expanding Their Late Stage Portfolio, Hercules Invests $22.5 Million of Debt Financing in Ikano Communications

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

Hercules Technology Growth Capital, Inc. (NASDAQ:HTGC), a leading specialty finance company providing growth capital to venture capital and private equity backed technology and life science companies, continues to add later stage companies to their growing portfolio. The Company today announced that on March 30, 2007, it provided $22.5 million of debt financing to Ikano Communications Inc., a leading provider of private-label, wholesale and retail Internet services.

Ikano is a market-leading full service provider of Internet networking infrastructure, wholesale access, private-label and consumer Internet services. Its private-label platform supports turnkey dial-up, DSL, VoIP, wireless access solutions, email/webmail, instant messaging, hosting, billing and branded customer service.

"Ikano's lasting relationships with some of the largest Telco carriers in the industry coupled with its unique IP services have been key factors in driving the company's substantial growth over the last several years," said Sam Bhaumik, senior managing director of Hercules. "Our ability to provide debt financing to mature, later-stage companies such as Ikano illustrates Hercules' own continued success and growth."

Under new management, Ikano has seen a surge in new business and has grown its revenue run rate over 100% since June 30, 2005. The company expects further growth as the infrastructure for broadband service expands nationwide.

"We have experienced tremendous growth over the past several years," commented George Naspo, CEO of Ikano. "This funding will support our recent acquisitions and allow Ikano to continue to provide world class reliability and customer support to our partners and over 500,000 subscribers nationwide. We are pleased to establish a relationship with a long term partner such as Hercules who can grow with us."

Ikano is backed by a number of leading industry investors including Insight Venture Partners.

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 Ikano Communications, Inc.

IKANO Communications was founded over 10 years ago as a regional Internet service provider in the Intermountain West and since then has flourished to become the industry leader in private-label, wholesale, and retail Internet services. IKANO leverages its ISP platform to provide outstanding services at highly competitive prices. The company's rapid growth and excellence in the field have resulted in IKANO's ranking in the Inc. 500, Technology Fast 500, Inner City 100, Utah 100, and Call Center of the Year. For more information, visit www.ikano.com.

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 April 9, 2007