Delta Capital Invests in TrestleTree, Inc.

Delta Adds Disease Management Concern to its Growing Health Care Portfolio

Memphis, TN, June 1, 2004 – Delta Capital Management, LLC, a leading venture capital firm focused on investing in the Southeast, today announced that Delta Venture Partners II, L.P. has made a $1 million equity investment in the Series B round of TrestleTree, Inc. of Fayetteville, Arkansas. The Series B round of investment totaled $4 million and was led by Diamond State Ventures of Little Rock, Arkansas and also included two other family-related investment groups. As a result of the investment, Joel Wood of Delta Capital was added to the TrestleTree Board of Directors.

Founded by Ted Borgstadt and Clint Gabbard, TrestleTree, Inc. is a health transformation company whose business is to reduce the health care costs of self-insured companies and state Medicaid beneficiaries through health behavioral coaching for employees. The company produces health care savings by changing critical health behaviors that drive spending in both medical and pharmacy claims. TrestleTree provides health-coaching relationships to employees who are diagnosed with a chronic illness, such as diabetes, asthma, high blood pressure, or high cholesterol, as well as those employees who have a pre-diseased condition, such as obesity or tobacco use. The company utilizes health coaches, who work via teleconference calls, to deliver its primary service. Health coaches are health care professionals such as nurses, registered dieticians, exercise physiologists, and pharmacists who combine health care knowledge, credibility and high patient touch qualities with specialized skills in behavior modification acquired through TrestleTree’s proprietary training.

“Delta Capital is pleased to add TrestleTree to its portfolio. The company’s unique health coaching model has achieved unprecedented results in the disease management category and is being very well received by self-insured employers and state Medicaid agencies,” said Joel Wood, a Partner at Delta Capital.

“TrestleTree is delighted to finish the Series B investment round with an investment by Delta Capital who joins Diamond State Ventures as institutional backers of the company. TrestleTree is poised to change the face of disease management through its unique health coaching platform,” said Ted Borgstadt, CEO of TrestleTree.

About Delta Capital Management
Founded in 1992, Delta Capital Management is a venture capital firm that invests in expansion and late stage emerging growth companies. The firm makes venture capital investments primarily in the four state area of Tennessee, Arkansas, Mississippi and Alabama, but evaluates investment opportunities across the broader Southeast region. The firm focuses on four main industries: information technology, healthcare, telecommunications, and supply chain logistics. Delta manages over $90 million in capital and is licensed as a Participating Securities Small Business Investment Corporation (SBIC). Delta assists its portfolio companies in their growth strategies, strategic planning and subsequent capital strategies. More information is available at www.deltacapital.com.

About TrestleTree, Inc.
Headquartered in Fayetteville, Arkansas, TrestleTree, Inc. is a health transformation company that can reduce the impact of medical inflation and decrease costs through behavioral health coaching for employees of self-insured companies and state Medicaid beneficiaries. TrestleTree can produce superior health care savings by changing critical health behaviors that drive spending in both medical and pharmacy claims. Audited results have shown greater than a 50% reduction in health care costs for the chronically ill, and greater than a 15% cost reduction across the entire population. More information is available at www.trestletree.com.

For more information contact:
Joel Wood
Delta Capital Management, LLC
901.755.0949