FDIC State Banks Approve TIGRcub Financing Structure as Lending Product

Online, February 26, 2012 (Newswire.com) - Entrex is pleased to announce that two FDIC State chartered banks, one in Florida and in Illinois, have approved the TIGRcub Security as an eligible security structure under which commercial loans can be funded for operating companies.

"Banks represent an entirely new source of capital for TIGRcub Security issuers, and can offer very competitive borrowing rates" said Stephen H. Watkins, CEO of Entrex. "Many banks have been struggling for years to find ways to enhance yield related to commercial loans, and to diversify underlying collateral from high levels of real estate concentration

"Today, there are over 100 TIGRcub Security issuers representing nearly $2.5 billion in aggregate offerings. I believe we will see multiple layers of lending sources, now to include banks, proposing on Senior Secured TIGRcub Security offerings, ultimately lowering a company's overall cost of capital."

"Within two short weeks from the date of first approvals from banks, Entrex is seeing stronger than expected issuer demand for TIGRcub Security that can be funded through bank sources. We sense that the strong demand is a result of more attractive borrowing rates than traditional mezzanine investment sources and shorter underwriting timeframes" said Watkins. "We are enthusiastic about the potential for this new and additional source and are eager to see how this plays out for the TIGRcub Security issuers and for banks in Florida and Illinois over the next few quarters."

TIGRcub Securities ("Top-line Income Generation Rights Certificates") allow companies to raise capital by sharing a small percentage of top-line revenues with investors for a designated period of time. TIGRcub Securities are transparent and tradable debt securities, which offer accredited and institutional investors an efficient way to make investments in private or in thinly traded public companies. The security structure avoids the problems of liquidity and valuation of equity commonly associated with investments in middle market companies. In 2011 Entrex licensed its intellectual property to over 41 Companies who in turn offered to investors TIGRcub Securities, representing a value of over $1.3 billion.