Chrysalis Ventures Leads $5.5 Million “B” Round in TechSkills, LLC

LOUISVILLE, KY (January 9, 2004) – Chrysalis Ventures, a leading source of equity capital for young growth companies in the Southeast and Midwest, announced today that it led a $5.5 million “B” Round tranched investment in Austin-based TechSkills, LLC which closed on December 31, 2003. The final tranche of the round will be funded in July 2004. Chrysalis’ co-investors in the financing include OCA Ventures and Tobat Capital. Both are current investors in the Company.

TechSkills specializes in Information Technology (IT) certification, Allied Health services, and business skills training, and is one of the larger privately held postsecondary education providers in the United States. It operates over 30 Learning Centers across the country using its unique blended learning approach, the “Facilitated Learning Method.” This blended learning model combines e-learning technology with the best elements of traditional classroom-based education (including personal instruction from certified professionals and hands-on labs).

TechSkills offers over 100 courses which provide skills-based training or certification for Cisco, Microsoft, Oracle, Linux, CompTIA, the Internet, security, and other key IT topics. The Company’s corporate learning solutions cater to the IT training needs of the business and military sectors.

TechSkills also offers medical education programs for Allied Health services including training in medical office operations, medical transcription, and insurance coding and billing.

The Company has over 20,000 active students and alumni.

According to Kevin Paulsen, President and CEO of TechSkills, “Information Technology remains one of the fastest-growing fields of employment, accounting for one of every four new jobs created between now and 2010. These openings represent career opportunities with high starting salaries, good benefits, and growth potential. With TechSkills’ unique learning model, individuals can position themselves to advance their career without compromising their current work or personal schedules. Companies can retrain their employees to meet the demands brought on by changes in technology, and retain personnel, without significant downtime and with minimum expense. The flexibility of TechSkills’ training allows students to progress at their own pace, on their own timetable with a structure that optimizes their learning experience. This additional capital permits us to continue to grow aggressively.”

“We are enthusiastic about the growth opportunity of TechSkills,” says Bob Saunders, Chrysalis Ventures Senior Managing Director, who has joined TechSkills’ board of directors. “The Company’s growth over the past three years, as well as its unique approach to blended learning, makes it a strong fit for our investment criteria. We are thrilled to be working with such a strong, experienced, proven management team.”


About TechSkills:
TechSkills is a nationally recognized innovator in technical education specializing in IT certification, Allied Health services, and business skills training. It operates over 30 Learning Centers across the country using its unique “Facilitated Learning Method” which combines the best elements of traditional classroom-based education with the latest distance learning methods.

For more information, please visit www.techskills.com.


About Chrysalis Ventures:
Founded in 1993, Chrysalis Ventures is a leading source of equity capital for young growth companies in the Southeast and Midwest. Chrysalis invests primarily in early-stage and expansion-stage companies in technology-enabled business services, healthcare information technology and services, telecommunications, and media and entertainment. Based in Louisville, Kentucky, Chrysalis has more than $200 million under management and has made investments in 40+ companies.

For more information, please visit www.chrysalisventures.com.


About OCA Ventures:
OCA Ventures is a multi-stage venture capital firm headquartered in Chicago, Illinois. OCA invests in early-stage and expansion-stage companies with a focus on technology. Along with its predecessor entity, OCI Investments, OCA Ventures manages slightly less than $40 million of investment capital.

For more information, please visit www.OCAVentures.com.