SOURCE: Winsted Holdings

March 16, 2006 08:45 ET

Winsted Holdings in Active Discussions to Buy Equity of Private and Micro-Cap Public Companies

DALLAS, TX -- (MARKET WIRE) -- March 16, 2006 --Winsted Holdings, Inc. (OTC BB: WNSH), a Business Development Company (BDC), today announced that it is in active discussions with multiple companies in the acquisition of equity pieces. One such firm, a publicly traded company, is working with Winsted in the revision of a Letter of Intent drafted by the equity issuer.

"Everyone knows by now how good we are in the medspa business and how we have been able to assist other companies in being all that they can be," stated Winsted CEO Mark Ellis. "We have been focusing our discussions with companies where we can make a substantial difference and only with companies that will significantly enhance our shareholder value. In the best interest of cash preservation, our efforts are skew towards the use of equity exchange and or the purchase of equity through services rendered."

Ellis further stated, "Management believes that by accumulating equities of other companies across a broad spectrum will allow Winsted to experience growth and profits from these portfolio investments without limiting ourselves to the fortunes of just one line of business. As an experienced BDC, we believe that our strategy is the most effective way to deliver value to our shareholders."

"Most companies that have approached us were extremely impressed with our operational plan. They understand the synergy through efficiency that we can help create and the possible benefits of being part of our portfolio companies. Certainly with our experienced management team coupled with our BDC status, they can see where we can nurture them into a more valuable proposition. In the case where we are exchanging equity, they can also see how we greatly reduce risk through diversification under one corporate BDC banner," concluded Ellis.

About Winsted Holdings, Inc.

Winsted Holdings, Inc. (OTC BB: WNSH) is a Business Development Company (BDC) located in Dallas, Texas. BDCs are publicly traded, closed-end investment companies regulated by the Investment Company Act of 1940. The Company was founded on the premise that combining both operational talent and financial talent within a single private equity investment firm can significantly enhance the magnitude and consistency of investment returns. Winsted Holdings' team consists of accomplished financial professionals with experience at prestigious financial institutions, seasoned corporate executives from various industry enterprises and successful entrepreneurs with expertise developed in aspects from business development to capital markets and from sales and marketing to technology development. Over the coming months, the Company will outline its ever changing portfolio holdings and its plans for the long-term medspa expansion.

Statements made in this press release regarding the Company's or management's intention, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to compete effectively in a rapidly evolving and price competitive marketplace; possible reductions in demand for our products and services due to competition or changes in industry conditions; changes in the nature of medspa and telecommunications regulations in the United States and other countries; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission.

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