New York, NY, May 10, 2006 – Milestone Venture Partners, an early stage venture capital fund focused on technology-enhanced service businesses in the New York metropolitan area, today announced the $28.5 million first-closing of its current fund, MVP III.

Eighty-five percent of the investors in MVP II reinvested in MVP III, many increasing the size of their investments. In addition, the fund has attracted new investors. Milestone expects to raise a total of $75 million for MVP III.

Based on Cambridge Associates’ industry data, the performance of Milestone’s prior fund, MVP II, ranks high in the top quartile of all venture capital funds started in 2001. MVP II’s portfolio companies are achieving high revenue growth rates, over half in excess of 50% per year. MVP II’s investors have already benefited from three liquidity events, including the sale of Derivatives Portfolio Management LLC to Mellon Financial Corporation (NYSE:MEL) and the sale of CareGain, Inc. to Fiserv Inc. (Nasdaq:FISV). Additional exits are expected this year or in early 2007. MVP II is now fully invested.

Edwin A. Goodman, Co-Founder of Milestone, a 30-year veteran of venture capital, beginning with Alan Patricof Associates (now Apax), said, “We are gratified that the strong performance of MVP II enabled us to increase the support of our early investors while attracting new participants.”

Todd Pietri, also a Co-Founder added, “We focus on companies in New York, New Jersey, Connecticut, and Eastern Pennsylvania that take advantage of the Internet and the region’s historical leadership in media, marketing services, financial services and healthcare.”

Richard Dumler, Milestone’s third General Partner, also with more than 30 years venture capital experience, reiterated the attractiveness of the investment opportunity in the region: “There is much less pressure from competitive capital than in other major VC markets like California and Boston.”

Celebrating its fifth anniversary, Milestone Venture Partners invests primarily in post-revenue companies that solve business problems and address consumer needs through the innovative application of information technology, especially when provided as a service.

At prior firms, the management team invested in some 200 companies including Apple (Nasdaq: AAPL), ADVO, Inc. (NYSE: AD), Actmedia, Kronos (Nasdaq: KRON), Staples (Nasdaq: SPLS), and Sungard Data Systems.

For more information, call Edwin Goodman at Milestone Venture Partners, (212) 223-7400 or visit www.milestonevp.com.

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