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NewStar Financial Provides Acquisition Financing for Carpathia Hosting, Inc.

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Boston, MA September 1, 2009 - NewStar Financial, Inc. (NASDAQ:NEWS), a Boston-based specialty finance company, announces that it has provided debt capital in support of a $30.0 million senior debt  financing led by Madison Capital that backs Carpathia Hosting, Inc.'s ("Carpathia") acquisition of ServerVault Corp, a provider of IT infrastructure management and hosting services.  Carpathia, a portfolio company of Spire Capital Partners ("Spire Capital"), is a web and application hosting company serving government, corporate and individual customers with a variety of hosting, managed and optimization services. Spire Capital is a private equity firm located in New York, NY with approximately $600 million in assets under management.



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