Hennessey Capital Solutions and Surge Capital Create Multi-Million Dollar Fund to Help Suppliers Accelerate Cash Flow

HUNTINGTON WOODS, Mich., Aug. 16, 2005 -- Hennessey Capital Solutions (HCS) announced today that it has concluded a $38 million financing with Surge Capital to support the HCS EarlyPay(TM) supply chain financing program. This new relationship gives Hennessey Capital Solutions the ability to expand its existing activities within the automotive industry and to establish an important presence in other industries such as electronics, chemicals, pharmaceuticals, heavy manufacturing, retailing, and technology.

"We can now roll-out our HCS EarlyPay(TM) supply chain financing solution across any industry," said Tom Cross, president of Hennessey Capital Solutions.

As markets tighten, suppliers find that more and more of their working capital ends up financing extended payment terms. The HCS EarlyPay(TM) program's unique technology-based platform provides a solution to this serious problem.

"Suppliers can selectively use our program to complement their existing banking relationships. By accelerating receivables as needed, they can directly control their own cash flow and generate more working capital," said Cross. "As important, HCS EarlyPay(TM) benefits suppliers' customers as well, since it reduces financing costs and lowers supply chain cost and risk."

"Our receivables acceleration product fits easily within any supply chain environment. With the Surge agreement, we now have the funding capability to address larger and greater numbers of transactions," said Frank Hennessey, chairman of Hennessey Capital Solutions.

Surge Capital, HCS's financing partner in this transaction, is a private investment fund headquartered in Northbrook, IL. The firm specializes in trade and inventory finance transactions where clients are able to obtain substantial funding beyond traditional financing guidelines in order to fulfill purchase orders.

"Surge Capital sees this new relationship with Hennessey Capital Solutions as an important opportunity to leverage our supply chain financing expertise," said Parker Lapp, Senior Vice President of Surge Capital's Detroit office. "We see an increasing demand for powerful capital solutions across all supply chains, and the HCS program addresses that need."

Hennessey Capital Solutions is part of the Hennessey group of companies. It delivers lean-financing strategies to supply chains to increase credit availability and flexibility while reducing cost and risk. For more information, contact HCS at 248-658-1200.

Surge Capital provides trade and inventory financing for up to 100% of purchase order values. For more information, contact the Southfield, MI office at 248-945-7378.