SOURCE: Netspace

November 07, 2007 16:10 ET

Netspace International Holdings, Inc. Makes Key Acquisition

AVENTURA, FL--(Marketwire - November 7, 2007) - Netspace International, Inc. (Netspace) (PINKSHEETS: NSIH) is pleased to announce its acquisition of Birch Capital Group. Birch Capital Group, the consulting group that acquired the Assets for the Netspace acquisition, was founded to find attractive assets and build companies around those assets.

In 2006, Birch identified a unique opportunity to acquire Netvertise Inc. D/B/A Netspace, an operationally distressed company with strong brand recognition and franchise operations in a rapidly growing business sector, Internet Marketing. With the support of trusted relationships in franchise development, as well as key members with expertise in advanced technology, marketing and finance Birch moved to and acquired the distressed company under more than favorable terms in June 2006 to form Netspace International, Inc.

At completion of the acquisition, Birch recruited a highly skilled team of technology professionals with extensive experience in Internet Marketing, Web Development, Network Infrastructure, Sales Management and Project Management to develop and implement extensive technology, marketing and franchise initiatives.

In conjunction with Netspace International, Inc. implementing an extensive upgrade plan, Birch continued to provide critical merchant banking support. With strong brand recognition in a rapidly growing business sector, Netspace was recognized from the start as having public appeal and access to the public markets. This unique combination provided an opportunity for Netspace International, Inc. to maximize shareholder wealth and sufficiently capitalize the company for global franchising and joint venture opportunities.

With the support of Birch, Netspace International, Inc. successfully executed a major milestone by obtaining controlling ownership of publicly traded Targit Interactive (TGIT) through an optimally structured reverse merger to form Netspace International Holdings (NSIH) and position the company to maximum shareholder wealth and fund raising capacity in July 2007.

Additionally, In August of 2007 Netspace International Holdings achieved its second major milestone by completing all operational and support objections including: the implementation of an enterprise wide communication system with partner Waterstreet Technologies, an International Franchise Association (IFA) recognized member, the upgrade of all Franchise materials, service pricing and positioning with support of strategic partner and leading Franchise Development firm iFranchise, upgrade of the companies Franchise Offering Circular (UFOC) and Franchise Agreement by the Company's attorney, nationally recognize franchise attorney Harold Kestenbaum and implementation of a project management office (PMO) in accordance with Project Management Institute standards.

With the support of Birch, Netspace strategically created two wholly subsidiary divisions; Netspace Franchise International, responsible for all franchise operations and Netspace Ventures, providing services to select, qualified companies in exchange for equity. The additional entities provide flexibility to the company and allow the team to leverage their merchant banking expertise and relationships for future expansion opportunities.

Going forward, Neil Swartz will lead Netspace/Birch as CEO. Netspace/Birch will focus on finding other assets it can acquire to create shareholder value, while positioning Netspace Franchising and Joint Venture Company's for significant growth with a focused and experienced management team.

"When we took Netspace public our goal was to utilize the strengths of Birch to find other assets that will be advantageous for the Company and its shareholders. Now that Birch is a part of Netspace, we feel strongly that our future acquisitions will increase both Netspace's Franchise and Ventures endeavors," says Chris Arthmann.

Further Information

Shareholders and prospective investors are encouraged to visit Netspace's website at www.netspace.com. Please feel free to call investor relations toll-free at 1-866-511-1147 to receive detailed information about Netspace.

About Netspace International Holdings, Inc.

Netspace International Holdings, Inc. delivers professionally crafted websites, customized online marketing solutions, e-commerce platforms, and the technology backbone to support superior web performance and reliability to Small and Medium Sized Enterprises (SME). For additional information visit www.netspace.com

Forward-Looking Statements

The foregoing press release may contain forward-looking statements, including statements regarding, among other things, about the expectation of Netspace International's future business that are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties, certain of which are beyond the Company's control. Actual results could differ materially from these forward looking statements as a result of a variety of factors including, among others, the state of the economy, the competitive environment, and the Company's performance. In light of these risks and uncertainties there can be no assurances that the forward-looking statements contained in this press release will in fact transpire or prove to be accurate. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission.

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