Premiere Accounting Services Firm Begins Nationwide Expansion With Entry Into West Coast Markets

WEST CHESTER, Pa. -- Carpathia Corporation, a leading provider of accounting consulting, staffing and executive search and placement, announced today its investment in three California-based accounting services firms: Irvine-based Corporate DNA, The Nolan Group of Walnut Creek, and San Francisco's A4C.
The move into metropolitan Los Angeles and San Francisco marks Carpathia's first significant foray outside its home base in the Philadelphia area, where it announced its investment in Lordi Consulting and Peopleflex in October 2005. The execution of Carpathia's expansion strategy focuses on entering key markets across the country through the acquisition of firms that are a natural fit with its business model, as well as organic growth. The firm ultimately plans to operate 40 offices over the next four years.

"These additions to our team provide a solid foundation for establishing Carpathia's national footprint," said Carpathia CEO Rob Wilson. "We are excited to build on the past success of Corporate DNA, The Nolan Group and A4C with enhanced services to bring our clients more choices, greater convenience, and additional people and ideas to help them meet all their accounting, finance and internal audit needs. We are also delighted that the senior management from all three firms are joining Carpathia's leadership team and will continue to be directly involved with servicing clients in their respective markets."

Carpathia's successful business model of offering complementary services under two distinct brands will see a re-branding effort begin in the fourth quarter to integrate the various operating entities and any subsequent acquisitions. Carpathia Consulting offers premium accounting and audit services, including specialties in Sarbanes-Oxley compliance and internal audit. Peopleflex Accounting Professionals provides executive-level accounting professionals on an interim or permanent basis.

The Nolan Group, based in Walnut Creek, was founded by accounting staffing and recruiting veteran Nancy Nolan in 1997. The company rapidly achieved an impressive number of Bay Area and Silicon Valley clients ranging from small and medium sized companies to Fortune 500 and Big 4 accounting firms.

"We are thrilled to find an ideal partner in Carpathia and its leadership team," said Nolan. "Our shared vision and corporate cultures focus on personal service and outstanding client benefits. This not only makes us a natural fit but also ensures a successful, seamless integration of our companies and expansion of our services."

A4C CEO Daniel Maisler and President Mary Ann Miller founded their firm in San Francisco in 1990 to provide seasoned accounting, finance, tax, and business management consultancy. The firm's client base spans a wide spectrum of industries, including biotechnology, banking, financial services, manufacturing, distribution, retail, not-for-profit, legal, real estate, health care and public utilities.

"Our strategic decision to join Carpathia provides our employees unparalleled opportunities for growth and our clients access to a broader range of services," said Maisler. "The combination of our companies will allow us to offer the deep accounting expertise on a national scale while retaining our local flavor.

Orange County staffing and placement firm Corporate DNA was founded by Josh Miller and Marty Foxman in 2004 and subsequently expanded to include more than 40 professionals, all of whom have joined the Carpathia team.

"Carpathia's proven business model of offering three complementary services will have a tremendous impact on our clients," said Foxman. "Demand for staffing and consulting services for the accounting industry continues to grow rapidly and we look forward to offering our clients an enhanced array of top quality services."

About Carpathia Corporation
Carpathia Corporation operates two complementary businesses -- Carpathia Consulting and Peopleflex Accounting Professionals. Carpathia Consulting is a leading provider of accounting, internal audit and business advisory consulting services. Peopleflex specializes in the placement of interim and permanent accounting, audit, financial analysis, tax and treasury professionals. Carpathia's equity financing was led by the partners of CGP (Chicago Growth Partners) Fund VIII, Peppertree Capital, and the Private Equity Group of Goldman Sachs Asset Management. For more information visit: www.carpathia.com.