Galen Capital Corp. Acquires Durango Group, LLC

McLean, VA – July 3, 2007– Galen Capital Corp. (GCC), a merchant banking and private equity firm dedicated to small capital, middle-market companies, today announced that GCC Capital Group, LLC, a wholly-owned subsidiary of the Company, has completed the closing agreement to acquire Durango Group, LLC. Durango Group is a business development and consulting services firm for commercial and government entities. The company is located in Durango, Colo. with offices in Colorado Springs, and Washington, D.C. and is comprised of senior-level executives with many years of experience in government and industry.

“With the expertise of Ret. General Ronald Fogleman, and the other Senior Associates within the company, Galen now has the ability to actively pursue a client in the homeland security industry,” said William P. Danielczyk, Chairman of Galen Capital Corp. “This acquisition positions Galen even further in the right direction to achieve the goal to become a leader in the homeland security and government sectors.”

Durango Group is lead by Ret. General Fogleman the Former Chief of Staff for the United States Air Force. Brigadier General Mark Beesley, Senior Managing Director of Galen, will also be adding his expertise and direction. The company’s strengths are embodied in the talents and experience of its associate staff and the skills of the technical, operational and management personnel assigned to individual programs and projects. Durango will give Galen a competitive advantage in the complex and connection driven homeland security sector. Homeland security spending has increased to record levels since the terrorist attacks on 9/11. This trend is expected to continue. In this industry, connections in the defense establishment have as much to do with success as access to capital.

General Fogleman commented, “We believe the combination of expertise brought to the table by the Associates of The Durango Group combined with the knowledge of the financial aspects of sourcing and executing deals brought by Galen, will lead to portfolio growth in the defense and homeland security sectors. Additionally, The Durango Group has a broad range of experience in business advisory services that is immediately available to existing Galen clients.”

Galen’s expertise, independently and through the experience of Durango, will prove to be synergistic in both sourcing and executing deals. Galen will continue to acquire asset managers and increase the assets under management. With the acquisition of Durango and the future acquisitions of additional strategic, consulting and advisory firms, Galen anticipates complimenting the Company’s industry sectors of focus.

About Galen Capital Corporation (GCC)

Galen Capital Corp. (www.galencc.com) is a merchant banking and private equity firm dedicated and focused on working with small capital, middle-market companies. GCC offers a range of transaction execution and advisory services in the areas of mergers and acquisitions, leveraged buyouts, mezzanine, equity and debt financing, and private & public placements. Headquartered in Washington, DC, the firm also has offices in Los Angeles Calif., San Diego, Calif., Nashville, Tenn. and opening soon in London, U.K.

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Contact:
Anna Drinkard
Director of Corporate Communications
703-893-0021 ext. 105
adrinkard@galencc.com