Features - Financial Plays Of The Week:

ARSENAL DIGITAL SOLUTIONS SECURES $10.5 MILLION IN FUNDING

Arsenal Digital Solutions (Arsenal), a leading Storage Management Services (SMS) provider, announced that it has completed a round of financing totaling $10.5 million, bringing the Company's total funding to more than $63 million. Contributing investors in this Series D round of financing include Covestco, Southeast Interactive Technology Funds and Southern Cross Capital. The new funding follows a year of extraordinary success for Arsenal whose customer base expanded by 264 percent while the revenue base grew by more than 215 percent.

Arsenal is one of the fastest-growing providers of storage management services in North America. Arsenal currently supports more than 700 customers in 22 data centers, and has earned the trust of some of the world's largest companies. The proceeds from this financing will be used to expand services for customers and partners, and to enhance business development.

"This strategic round of funding is a resounding vote of confidence in Arsenal's business model and our wealth of industry expertise," said Steven Horan, chief financial officer, Arsenal Digital Solutions. "With this new financing, Arsenal will capitalize on its success to further penetrate the market and enhance our service offerings to meet the growing data protection and business continuity needs of our partners and customers."

"This financing caps a year of extraordinary success in customer and revenue growth for Arsenal. Arsenal's rapid growth is a testament to the management team's ability to set and execute on its strategic direction," said Norvell Miller, managing director, Southeast Interactive Technology Funds. "We believe that Arsenal will continue to lead the market for storage services due to its accomplished management team, strong partnerships and impressive customer and revenue growth."

In 2002, Arsenal was named to Deloitte & Touche's prestigious Technology Fast 50 program for North Carolina, a ranking of the 50 fastest-growing technology companies in the state for its double-digit percentage revenue growth. Early in 2002, the Company named management veteran Frank Brick as chairman and CEO of the Company.