Mezzanine Announces Write Down in Net Asset Value; and New Investments

Hamilton, Bermuda--Mezzanine (BSX: "MEZZ") announces a one time write down in net asset value of $10,000,000. The write down was the result of the lack of a current public market value for certain bonds held by the Company. While Mezzanine management is of the opinion that the bonds have substantial market value, and is commencing attempts to sell the bond in the private market, it is considered prudent to write down the bonds in total at this time, and post gains as they are sold.

In unrelated transactions, Mezzanine announced, pending ratification at a special shareholder's meeting in May, the acquisition of substantial positions in Uniforms For America, Inc (OTC/BB: "UNIF"), and Beverage Stores, Inc. (OTC/BB:"BEVG"), that will add in excess of $4,500,000 to Mezzanine's net asset value. "Both of these companies represent good examples of our investment strategy of targeting up and coming microcap companies with strong market presence and capable management," said Mezzanine President Eric Chess Bronk, "We have been following these companies for a long time, and in the case of Uniforms are adding to our position in the company," added Mr. Bronk.

In addition, Mezzanine has also approved an investment, valued in excess of $200,000, in privately held Xtranet Business Solutions, Inc., located in Orange County, California. Xtranet is a start up company which provides Internet based information and communications systems and services (extranets) for proprietary, and third party, applications.

Eric Chess Bronk
President
U.S. Tel: (714) 720-9155
U.S. Fax: (714) 786-2188
E-mail: advisor@mezz.com