News Releases

Waterside Capital Announces Earnings Release

NORFOLK, VA : February 14, 2008 : Waterside Capital Corp. (Nasdaq: WSCC), a Small Business Investment Company (SBIC), today reported financial results for the six months ended December 31, 2007.

The company's net increase in stockholders' equity resulting from operations (which includes net operating income plus realized and unrealized gains or losses on investments) was $161,000 or $.08 per share for the six months ended December 31, 2007, compared to a decrease of $1,707,000 or $.89 per share for the six months ended December 31, 2006. The per share performance was calculated using weighted average shares outstanding of 1,915,548.

The company prepaid $5.3 million of SBA debenture debt with an average of 8.4% interest rate in September 2007, which will reduce interest expense and improve operating performance. Management continues to focus on expense control, harvesting investments, and ramping up business development activities to generate new, risk appropriate investments.

At December 31, 2007, Waterside's loans and investments had a fair value of $21.6 million compared with $21.2 million reported at June 30, 2007. For the six months ended December 31, 2007, the company originated new investments of $5.1 million and received proceeds from sale of investments and principal collected on notes receivable and debt securities of $3.8 million. This compared to the company’s funding of $1.8 million in new investments for the six months ended December 31, 2006, and receiving proceeds from the sale of investments, principal collected on debt securities, and proceeds from collection of notes receivable of $3 million. The net asset value of the common shares increased to $5.04 per share at December 31, 2007 from the $4.95 reported at June 30 2007. The increase in net asset value was due to the above mentioned $161,000 increase in shareholders equity resulting from operations.

About Waterside Capital Corporation

Waterside Capital Corporation is a Small Business Investment Company (SBIC) headquartered in the Mid-Atlantic Region that specializes in venture capital, financing and small business loans ranging from $500,000 to over $3 million. The capital investment firm serves small businesses in the Mid-Atlantic Region, Richmond, Hampton Roads, Virginia, Washington DC, North Carolina, and Maryland. It has a portfolio of approximately $22 million of loans and investments in 16 companies.

For more information contact:
Franklin (Lin) Earley, CEO, (757) 626-1111 x 307,

Julie Stroh, CFO, (757) 626-1111 x 301,