Diamond Capital Partners Aids in Successful Acquisition of Search Engine Marketing Firm by Leading Web Service Provider

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Mid-Market Investment Banking Firm, Diamond Capital Partners, Advises Search Engine Marketing Firm, MerchEngines, through its Acquisition by Hostopia.com, Inc.

Diamond Capital Partners (http://www.diamondcapitalpartners.com), a mid-market investment banking firm, is pleased to announce the successful acquisition of MerchEngines, a search engine marketing (SEM) firm, by web service provider, Hostopia.com, Inc., a unit of Deluxe Corp. (NYSE: DLX; http://www.Deluxe.com). Diamond Capital was the exclusive financial advisor to MerchEngines.

MerchEngines.com is a Software as a Service (SaaS) solution that provides ad agencies, traditional media companies, online publishers, and local aggregators with a hosted and fully-managed search marketing solution. MerchEngines integrates traffic generation solutions with conversion technologies, such as call tracking/call recording and lead capture/lead management solutions, into one easy-to-use private label-able dashboard.

Hostopia is a leading provider of web services that enables small- and medium-sized businesses to establish and maintain a robust, commercial presence on the Internet. The company's customers are communication services providers including telecommunication carriers, cable companies, Internet service providers, domain registrars, and web hosting service providers.

The acquisition of MerchEngines by Hostopia, instantly extends the service offerings that Hostopia can provide its partners, giving service providers new revenue opportunities outside of their traditionally targeted budgets, by tapping into the advertising budgets of their small business clients.

"In this acquisition scenario, (Diamond Capital Partners) helped create enhanced opportunities for both sides of the deal. This transaction has enabled MerchEngines to reach more prospective customers by aligning the firm with a larger industry player, and aided in the expansion of offerings that Hostopia provides its clients, through the addition of MerchEngine's products," says Mark R. Ross, Diamond Capital managing partner. Mr. Ross continues, "We created a win-win situation, for both parties."

This deal further demonstrates Diamond Capital Partners' belief that providing their clients with real world, hands-on operational experience - in this case, in the technology and advertising sectors - allows the firm to better understand their clients' strengths and weaknesses, and to find creative ways to solve their funding or M&A dilemmas. The Diamond Capital Partners team has completed hundreds of successful transactions, ranging from $10 million to over $200 million in value.

Mark R. Ross has over 30 years of hands-on experience, both as an entrepreneur and as a banker, leading companies to unprecedented growth. He is the current Vice-Chairman of Autobytel, Inc. [NASDAQ: ABTL], where he also serves as a member of the Board's Audit Committee. Mr. Ross was also the founding investor and senior board member of AutoWeb [NASDAQ: AWEB], and spearheaded its merger in 2001 with Autobytel.

Mr. Ross is also the founder of Cogito Capital, a corporate advisory firm working with rapidly-growing, emerging technology companies on their scalability, infrastructure and media/convergence strategies. Mr. Ross was also a Managing Director of Chatsworth Securities, an investment banking firm, and has served on the boards of advisors of many early-stage growth companies, such as iCastle.com, Salon, Inc. [NASDAQ: SALNC], MoreDirect, Inc. and Mediaplex, Inc. [NASDAQ: MPLX].

About Diamond Capital Partners

Diamond Capital Partners currently consists of seven managing members, David Herman, Bruce Kobritz, Mark R. Ross, Robert T. Smith, Robert K. Whyte, Katherine Makinney and Lawrence R. Johnson, who have a vast array of transactional and negotiating skills, along with real, corporate operational expertise. Diamond Capital Partners is headquartered in Century City, Los Angeles, with additional operations in New York and Nashville.

Diamond Capital's goal is to maximize shareholder value by providing senior-level experience and an aggressive auction process in mergers and acquisitions, and corporate finance. The firm focuses on privately held companies with revenues of up to $200 million. The Diamond Capital team's experience and expansive contact roster allows them to conduct high-end, efficient auctions, saving time and producing better-than-market valuations. Diamond Capital looks to take the most direct route in any given transaction situation; honing in on targeted opportunities, in order to present the best possible scenario to its clients, allowing the client to focus on, and attain, their most optimal deal results.

For further information and updates on Diamond Capital Partners, its individual management team members, completed transactions and services offered, please visit: http://www.diamondcapitalpartners.com.

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