SOURCE: Netspace

November 19, 2007 09:00 ET

Netspace International Redefines Business Model

AVENTURA, FL--(Marketwire - November 19, 2007) - Netspace International, Inc. (Netspace) (PINKSHEETS: NSIH) is pleased to share its short-term and long-term business objectives.

Since the recent acquisition of Birch Holding Company DBA Birch Capital Group, new management and board of directors have completed a review of all aspects of Netspace. Due to losses incurred, Netspace has made significant changes to its operational plans. New management has rescinded all existing franchise agreements with franchises that were inherited from the acquisition of Netspace.

Through the recent corporate overhaul, management was able to significantly cut overhead costs, and is now in a position to fully utilize Netspace's assets and increase value to the Company and its shareholders.

Netspace acquired Birch Capital Group to take advantage of the skills of Birch Capital's management team. Netspace has now established appropriately skilled candidates to refocus management at the operations level, and spearhead future franchising initiatives.

By repurposing Netspace's existing assets, coupled with the recent acquisition, Netspace has laid a solid foundation for increased growth by establishing: i. Infrastructure to start selling franchises; ii. Communications systems to support franchises; iii. The Brand, Netspace, which has been operational for over a decade; and iv. Current capital structure.

The Company is now in a position to move forward with its plans to continue making key acquisitions. Netspace has identified potential acquisition targets, and is currently in talks with management of companies that can take advantage of Netspace franchise assets. Netspace has a Letter of Intent in place for at least one potential acquisition that management expects to see completed soon.

Further Information

Shareholders and prospective investors are encouraged 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 is comprised of two wholly owned subsidiaries: 1. Netspace Franchise International, responsible for all franchise operations for Internet Marketing opportunities, and 2. Netspace Ventures, providing services for select qualified companies in exchange for equity. Netspace's recent acquisition of Birch Capital Group allows the Company to leverage Birch's merchant banking expertise and relationships for future expansion opportunities.

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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