Jenzabar Launches Accelerated Growth Strategy
New Capital Partner Helps Create Platform for Future Growth

Cambridge, MA - July 22, 2004 - Jenzabar, Inc., a leading e-business and e-learning solutions provider dedicated to higher education, today announced that the company has launched an accelerated growth strategy focused on its highly successful suite of front-end software and new non-traditional system.

Jenzabar Chairman and CEO Robert Maginn stated, "This marks a bright new chapter for Jenzabar. We are now poised to embark on an exciting growth strategy that will further expand our offerings to colleges and universities in the United States and worldwide even as we continue to develop and enhance our flagship ERP product lines. Most importantly, it strengthens our ability to help our customers achieve even greater success in this ever-changing industry."

Jenzabar delivers industry-leading software and services solutions designed exclusively for higher education. Jenzabar's unique Total Campus Management (TCM) approach combines innovative software products, strategic consulting services, proven implementation services, and exceptional customer care. Each custom-tailored TCM solution is built from Jenzabar's integrated ERP, campus intelligence, Internet portal, and constituent relationship modules-and each solution is designed to result in measurable improvement in real-time decision-making, operational efficiency, and overall constituency satisfaction. Jenzabar's new non-traditional system provides a flexible Internet-based administrative solution for colleges and universities offering continuing education courses, degree completion programs, and certificate programs, both online and on campus.

Jenzabar President and COO Ling Chai stated, "Evolving distribution patterns in the higher education market provide vast opportunities for growth. There are 15 million traditional and non-traditional students in higher education institutions today and, with a growing need for life-long learning, we are seeing that number explode. Jenzabar is at the forefront of providing new, more efficient, and more affordable ways to deliver education to the right learner at the right place and the right time."

The platform for Jenzabar's new growth strategy has been strengthened by a recently closed $35 million capital infusion from MCG Capital Corporation (Nasdaq: MCGC). Jenzabar used the capital from MCG to replace its senior creditor, Pegasus Partners II, L.P., allowing the company to move forward with a new partner that is dedicated to its accelerated growth strategy and is experienced with investments in software companies.

Beverley Byers-Pevitts, President of Park University, said, "As a Jenzabar customer, we think this is excellent news. Jenzabar has been an outstanding technology partner, fully committed to helping us advance the execution of our mission and strategy. We have adopted a full range of Jenzabar's software and services, including Jenzabar's Internet Campus Solution, and Jenzabar is truly passionate about meeting our needs. Considering the new products and service offerings that Jenzabar has planned, this is an exciting time to be a Jenzabar partner." Established in 1875, Park University is a national leader in higher education and is distinguished by its innovative adult-degree completion programs. The University has 22,000 students enrolled in undergraduate, graduate and online degree programs and uses Jenzabar's robust ERP software system to seamlessly manage its operations across 41 campuses located in 21 states.

MCG Capital Corporation, a publicly-traded financial services company, made the decision to invest in Jenzabar as a reflection of its strong belief in Jenzabar's mission, vision, and strategy, and the company's prospects for future growth. "Jenzabar has the right market, the right management team, and the right products to move forward to market leadership," MCG CEO Bryan Mitchell commented. "We are very excited about what Jenzabar has accomplished and look forward to backing the company in this next phase of its development."

"MCG has taken a significant equity stake in Jenzabar with the conviction that this company will become the leading company in the higher education technology marketplace," added MCG Managing Director Peter Malekian.

Maginn stated, "Jenzabar is very excited to have a new capital partner like MCG. We share the same vision and commitment to the higher education industry, and their decision to infuse the company with new capital strengthens our commitment to further growth. This investment marks a new milestone in Jenzabar's continuing history of growth and profitability, and will help us bring more creative products and services solutions to the market, while continuing to optimize our core ERP systems. We're delighted to be in a stronger position than ever before to help our customers become even more successful. "

Pegasus echoed MCG's confidence in Jenzabar's prospects for future achievement and growth. "Faced with the decision to either cash out or keep a minority stake in the company, Pegasus chose to stay in and is excited about the company's future," stated Rodney Cohen of Pegasus. "We have seen significant progress each year over the last four years at Jenzabar, and the management team has impressed us with their dedication to their customers and employees and their operational accomplishments."

About Jenzabar, Inc.
A dynamic software and services company dedicated to the success of colleges and universities, Jenzabar is the trusted partner of choice for 700 campuses across the nation and around the world. Jenzabar's Total Campus Management approach meets the unique business needs of higher education by offering institutions Jenzabar's i3 advantage-integrated, intelligent, and Internet-based solutions-to help them execute on their strategies and achieve their goals. Founded in 1998, Jenzabar is headquartered in Cambridge, MA. For more information, please visit www.jenzabar.net, or contact Sue Deacon at (617) 492-9099.

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