Delray Beach, FL. — July 31, 2006: Cleartel Communications, Inc., a leading provider of voice and data solutions serving customers throughout the United States, with state-of-the-art telecommunications facilities and customer concentrations in South Florida, announced today that it has signed a definitive agreement to acquire Supra Telecom. Supra provides competitive local, long distance, and internet services mainly in the South Florida markets, with customized products and a focus on the Hispanic community.

The combined enterprise is expected to generate annual revenues of approximately $200 million and will provide service to over 300,000 access lines across 28 states. The combined company is positioned to be “Florida’s Telephone Company” servicing over 200,000 lines in South Florida with a diverse suite of communications products and network solutions.

“The acquisition of Supra Telecom significantly increases our concentration in the South Florida market, where we provide consumers and small businesses competitively priced voice and data products.” stated Ken Baritz, CEO of Cleartel Communications. “In addition, Supra’s established brand and product suite for the growing Hispanic community in our Florida markets offers a significant growth opportunity for Cleartel.”

“Cleartel will continue to employ an acquisition and organic growth strategy to advance its leadership position in the telecommunications industry. The Supra purchase, and our recent acquisitions of NII, NOW, and IDS, affords us product breadth, scale and efficiency.” continued Baritz. “The telecommunications industry is constantly evolving, and Cleartel continues to meet and exceed customer expectations while optimizing business efficiency and cost savings. Bringing Supra into our portfolio is a significant step in the advancement of our market position and business plan.”

Terms of the transaction were not disclosed. The transaction is expected to close in the third quarter of 2006 and is subject to, among other conditions, receipt of applicable state and federal regulatory approvals. Cleartel is owned and controlled by MCG Capital Corporation (MCGC: NASDAQ), a leading investment firm with a long standing track record of success in the emerging telecommunications markets.

About Cleartel Communications
Cleartel Communications is a leading integrated telecommunications provider offering a diverse menu of voice, data, and Internet services, as well as other customized services and solutions to both consumer and business accounts in over 28 states. Cleartel services southeast Florida via its facilities-based network, which includes multiple class 5 switching facilities offering voice and data T-1’s over a state-of-the-art optical fiber network. The Company also offers pre-paid home telephone services via the brand name NOW Communications. Cleartel provides superior service along with real bottom-line savings to its customer base. Cleartel Communications, Inc. is headquartered in Delray Beach, FL, with offices in Orlando, FL and Hollywood, FL, and has over 330 employees. For more information on Cleartel Communications, please visit www.cleartel.com or call (561) 454-5004.

About Supra Telecom
Supra Telecom provides simple, affordable local telephone service, as well as domestic and international long distance, voicemail, and internet services in Florida and New York. With over 150,000 customers, Supra is one of the largest residential competitors to BellSouth in the state of Florida. While providing phone service for both small business and residential customers, Supra maintains a strong focus on serving the needs of the Hispanic community. Supra is headquartered in Orlando, FL, with operations in Miramar, FL and a 450-person call center in Costa Rica.

About MCG Capital Corporation
MCG Capital is a publicly traded Business Development Company with approximately $1.3 billion in total assets. MCG Capital is a solutions-focused specialized finance company providing financing and advisory services to middle market, growth-oriented companies throughout the United States. Our capital is generally used by our portfolio companies to finance acquisitions, recapitalizations, management buyouts, organic growth and working capital. To find out more about MCG Capital, visit www.mcgcapital.com.

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Media Contact:
Steve Roberts
(561) 454 - 5004
press_inquiries@cleartel.com