SOURCE: DH Capital, LLC

July 17, 2008 10:17 ET

DH Capital Advises Smart City on the Sale of Its Central Florida Operations to an Affiliate of Hargray Communications

NEW YORK, NY and BOULDER, CO--(Marketwire - July 17, 2008) - Smart City and Hargray Communications Group announced the signing of a definitive agreement under which an affiliate of Hargray will purchase the Central Florida operations of Smart City ("Smart City Telecom"), excluding Smart City's Orange County Convention Center operations. DH Capital, LLC ("DH Capital") served as exclusive financial advisor to Smart City. In addition, Gary Sugarman of Richfield Associates provided assistance to DH Capital on the transaction.

Hargray is owned by an affiliate of Quadrangle Capital Partners, the private investment arm of Quadrangle Group that is focused on the media and communications industries. The transaction is expected to close following customer regulatory approvals, which are expected by the fourth quarter of 2008. Financial terms of the deal were not disclosed.

Smart City Telecom's operations include its Lake Buena Vista and Maitland facilities that provide voice, data, and video services to the local hospitality, business and residential markets. The transaction does not involve any of the convention center operations owned by Smart City, which will continue as an independent provider of voice, data, and wireless services to 60 major convention centers across the United States, including the Orange County Convention Center.

About DH Capital, LLC

DH Capital is an investment banking partnership serving the media, Internet and telecommunications industries. Based in New York, the firm's principals have extensive experience and proven abilities in capital formation, finance, research, business development and operations. DH Capital provides a full range of advisory services to companies and financial institutions including private placements, mergers & acquisitions, financial restructuring, and operational consulting. The principals of DH Capital have led hundreds of transactions including mergers & acquisitions totaling in excess of $10 billion, private equity placements totaling more than $1 billion, and debt placements totaling in excess of $10 billion. For additional information on DH Capital, please contact us at 212-774-3720 or visit www.dhcapital.com.

About Smart City

Headquartered in Las Vegas, NV, Smart City is the nation's largest telecommunications company to the convention center industry. The company provides its voice, data and wireless services in 60 major convention centers to over 5,500 trade shows and events each year. For more information, please visit www.smartcity.com.

About Hargray Communications Group

Headquartered in Hilton Head Island, SC, Hargray is a quadruple-play provider of state-of-the-art telecommunications and related services. The company's service offerings include traditional telephone services, wireless services, high-speed Internet, and cable and IP television. The company also has a telephone directory publishing operation. Hargray is owned by an affiliate of Quadrangle Group. For more information, please visit www.hargray.com.

About Quadrangle Group

Quadrangle Group LLC is a private investment firm with more than $6 billion of assets under management. Quadrangle invests in media and communications companies through separate private and public investment strategies and across all asset classes through its asset management business. All investment strategies seek to maximize value by leveraging the investment team's extensive experience, knowledge and industry relationships. Quadrangle has offices in New York, London and Silicon Valley and will be opening an office later this year in Hong Kong. For more information, please visit www.quadranglegroup.com.

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