MERCANTILE CAPITAL GROUP ACQUIRES MICRONAS SEMICONDUCTORS’ BROADCAST TECHNOLOGY AND FORMS DTV INNOVATIONS

Chicago, IL – February 3, 2006 – The Mercantile Capital Group, a Chicago and New York based Private Equity fund, announced today the acquisition of Micronas Semiconductors’ digital broadcast technologies and the formal formation of DTV Innovations, LLC. DTV Innovations is committed to the development of new advancements in digital broadcasting in response to the rapidly changing pace at which technology impacts the needs of television broadcasters. DTV offers true end to end solutions from design, implementation to support and after sales service.

I. Steven Edelson, a Managing Member at Mercantile Capital Partners, said today, “We have acquired a company whose products are incredible broadcast solutions and have built a company around a team that can take this product suite to the next level.  The management team is lead by Christopher Knechtel (President) and Andy Lask (CEO).” Mr. Edelson adds, “Mercantile is extremely familiar with this market based on our currently portfolio holdings, which include Ligos Corporation, a leader in the global digital video market manufactures MPEG products, and VideOnline Communications Inc., a digital media network company focused on distributing secure multimedia content to Broadband Internet Service Providers and Cellular Carriers worldwide.”

Andy Lask, CEO of DTV Innovations, hailed his new team, “Christopher brings tremendous energy and insight to this company and I look forward to working with him and our exceptional board of directors.  DTV is perfectly positioned to truly impact the digital marketplace.”

About DTV Innovations
DTV Innovations is committed to the development of new advancements in digital broadcasting in response to the rapidly changing pace at which technology impacts the needs of television broadcasters. DTV offers true end to end solutions from design, implementation to support and after sales service.

In September 2002, LINX Electronics, created a Broadcast Group to provide support for one of the company’s investors, Liberty Corporation, during Liberty’s transition to Digital Television.  Linx Electronics hired Christopher Knechtel to lead the broadcast group. In June, 2004 LINX Electronics was acquired by Micronas Semiconductors Inc. (MSI), the US subsidiary of the German parent company, Micronas Semiconductors Holding AG. The acquisition was based on the intellectual property owned by Linx. DTV Innovations offers products which are designed to provide cost effective digital broadcast solutions for both the high power and low power TV broadcast markets. DTV’s solutions include a Program & System Information Protocol (PSIP) generator, electronic program guide generation software application, a single PCI card solution, which allows the capture, playback and conversion of MPEG2 transport streams in the ASI and SMPTE 310M formats, and a transport converter which converts MPEG transport streams between ASI, SMPTE 310M & SPI.

In January of 2006, Mercantile Capital Group, a private equity fund based in New York and Chicago purchased Micronas’ Broadcast Group and formed DTV Innovations LLC, a newly created company. For more information, please visit the company’s website www.dtvinnovations.com

About Mercantile Capital Group
Mercantile makes both debt and equity investments in early-stage companies, high-growth businesses, management buy-outs, and industry consolidations. The Companies which Mercantile invests in are managed by exceptional leaders with proven track records across a broad range of industries. Our overall investment strategy is a product of the collective experiences of our Principals. This strategy is designed to identify unique investment opportunities in order to generate consistent returns.

Specific areas of investment interest include telecommunications, data communications, wireless technologies, digital content transaction technology for both wireless and broadband communications, bandwidth improvement software and hardware, semiconductor design and production, Internet applications, services, and infrastructure, genomics, drug discovery and medical devices, as well as traditional businesses with market expansion and capital appreciation opportunities.