Central Valley Fund II Invests in Valley Healthcare Staffing

Central Valley Fund II Provides $3.3M in Debt Financing

Central Valley Fund II (CVF) announced today it has invested $3.3M in mezzanine capital financing to Valley Healthcare Staffing (VHS), a leading provider of nursing and allied healthcare travel staffing services, in order to facilitate the exit of legacy minority shareholders. The investment was completed in partnership with Founder and CEO Steve Swan, who is the principal shareholder of the Company. Steve Swan will continue to oversee the day-to-day operations and support his management team in the ever-evolving healthcare marketplace- which has experienced dramatic growth as a result of the Affordable Care Act (ACA).

“We are excited to partner with Steve and his team during the next phase of the company’s growth,” said Jose Blanco, a principal with CVF.

“The healthcare staffing industry is benefiting from numerous tailwinds, including an aging population that tends to utilize a greater proportion of healthcare services than the general population; improved access to medical care as a result of the nationwide expansion of insurance coverage; a shortage of healthcare professionals to match the rising demands of healthcare providers; and higher turnover within healthcare services due to improved economic conditions,” Blanco said. “These factors suggest an attractive outlook for healthcare staffing firms, which should continue to propel the growth of Valley Healthcare. In addition to organic growth, VHS will look to play a major role in consolidating a traditionally fragmented industry through accretive acquisitions.”

“We are thrilled with our new partnership and excited about the opportunities in front of us,” said Swan. “With their ambitious vision and healthy competitive nature, the CVF team was a perfect match for our company and its people. Their partnership affords our team the opportunity to invest in innovation through technology to create the best-in-class systems that will set us apart from everyone else.”

Valley Healthcare has focused its efforts on specialty travel nursing in recent years- a very dynamic and sought after labor pool. As the economy rebounds and California continues to see a spike in new insurance enrollees, the Company has focused on building its own infrastructure and improving its marketing presence. As a result of its efforts, VHS grew its revenue by 35% year-over-year in 2015 and expects to once again grow by 30% in 2016. As a result, the Company is expanding its operations in California- which is experiencing its rapid growth in healthcare services as a result of the newly insured members attributed to the expansion of healthcare coverage under the ACA.

Valley Healthcare has its corporate office in Sacramento, CA with 24 internal employees. It aims to reach $50 million in revenue in four to five years through a combination of organic growth and acquisitions.

About Valley Healthcare Staffing

Founded in Sacramento, California in 2002, Valley Healthcare has endeavored to provide a best-of-class recruitment and placement experience for the leading hospital systems since its inception. VHS has developed proprietary innovative on-line tools Job Mechanix and ValleyForce that facilitate a nurse’s job search to identify interesting and engaging travel nursing positions and subsequent onboarding for regulatory compliance and employment purposes.

For more information, please visit www.valleyrocks.com

Central Valley Fund II Invests in LightRiver Technologies

Davis, CA — Central Valley Fund II (“CVF II”) announced today it has made an investment in LightRiver Technologies (“LightRiver” or “LRT”), a Concord-based multi-vendor network integrator and equipment reseller. CVF II is pleased to invest alongside North Carolina-based Plexus Capital (“Plexus”) and sponsor Muir Equity to complete the recapitalization of LRT and provide the resources for the company to grow into the future.

The investor group is backing the current management team and is committed to maintaining LRT’s unparalleled capabilities and service offerings while expanding the company’s reach and capacity.

LRT was founded in 1998 by current CEO Glenn Johansen and has evolved into a highly-trusted and uniquely capable network solutions provider for many large businesses, utilities, government agencies, and technology innovators.

“LightRiver grew out of the increasing need for companies to keep up with the fast pace of development in transport communication network technologies. With LRT we are able to offer a complete solution for clients that need highly-reliable networks and the best equipment and performance” said Glenn Johansen, CEO, and founder of LightRiver. “We are excited about this new stage of LRT’s progression that will allow us to continue to invest in our business and grow to meet the needs of our clients and the market.”

According to Ed McNulty, a partner at CVF, “We were greatly impressed with the unique position LightRiver has been able to establish for itself as an expert and trusted resource for companies upgrading and migrating their network systems. LightRiver’s strong growth is a testament to the management team, and we believe with this investment the company will continue to grow and capitalize on a favorable market outlook.” Plexus’ managing partner, Michael Painter, added “We have had the pleasure of getting to know Glenn and the LightRiver team over the last several months and are excited about partnering with them for the company’s next phase of growth. We look forward to supporting Glenn and his team in furthering the LRT success story.”

About LightRiver Technologies

LightRiver Technologies designs, engineers, and commissions next-generation solutions for clients that require the highest capacity, reliability, and resiliency that today’s communications technology can deliver. LightRiver is a proven leader in integrating multi-vendor, next-generation transport networks, and guides clients through the entire lifecycle of a network from strategy, design, and migration to management, support, and maintenance. For more information, please visit www.lightriver.com

Utility Telecom Completes Acquisition of The Telephone Connection

Central Valley Fund II Provides $6.75M in Debt and Equity Financing

Stockton, California – Dec. 22, 2015 – Utility Telecom (“Utility”), a leading Central Valley provider of business telecommunications, networking, communications, and technology solutions, has completed its acquisition of The Telephone Connection of Los Angeles (“TTC”). Central Valley Fund II (“CVF II”) provided $6.75M to help finance the TTC acquisition and provided additional growth capital. The deal significantly expands Stockton based Utility-based customer base in the Southern California market and gives it access to a new industry vertical through live assist paging and voicemail services, largely used by physicians.

“This expansion in Southern California makes Utility an even stronger communications partner for wholesale, enterprise, and government customers seeking high-reliability, high-bandwidth network solutions in California and Nevada,” said Jason Mills, CEO, and Founder of Utility. “Our acquisition of TTC adds a new dimension to Utility’s network and offering in Southern California. The utility will continue to invest in its network to strengthen our infrastructure, better serve the needs of customers, and increase our standing as a high-quality regional telecom network operator.”

According to José Blanco, a partner at CVF II, “Jason and his team have built Utility into a first-class regional player having bootstrapped the Company almost 20 years ago from providing local phone service into a full-service telecom service provider”. Blanco continued, “Telecom services for small businesses are very fragmented and rapidly evolving as customers are looking for more bandwidth and responsive service offerings. We believe the Utility team is well poised to capitalize on these opportunities”.

About Utility Telecom

Founded in Stockton, California in 1996, Utility is one of the largest regional providers of networking, communications, and technology solutions in the California Central Valley. The company provides critical data networking and unified communications to over 5,000 business customers in California and Nevada, including enterprise, government, and wholesale customers. The utility has implemented many fully redundant fiber rings, supplying its customers with lightning-fast Internet speeds on ADSL, Ethernet over Copper, and classic T1 service, linking their regional Points-of-Presence with the public Internet peering points.

The utility is committed to providing businesses with the connections and bandwidth they need to be up and running with the most cutting-edge technology and great customer service. For more information, please visit www.utilitytelephone.com.

About Central Valley Fund

The Central Valley Fund was established in 2005 to finance later-stage growth and buyout opportunities of small businesses through mezzanine debt and preferred equity investments with over $175 million in committed capital. The fund has two offices in California – Davis, and Fresno – to attend to small businesses seeking capital. It is focused on making investments in California’s Central Valley and throughout the Western United States. For more information, please visit www.cvfcapitalpartners.com

For more information contact:

José Blanco

Managing Partner

CVF Capital Partners, Inc.

1590 Drew Avenue, Suite 110

Davis, CA 95618

Tel: 530-757-7004 ext. 227