NEW YORK, N.Y., Sept. 19, 2007 – Restricted Stock Partners today announced that it has secured Series A funding from Pequot Ventures. A portion of the funding will be used to speed the launch of a proprietary electronic trading platform for the Restricted Securities Trading Network (RSTN), the largest marketplace for restricted and other illiquid securities.

Pequot Ventures, the New York-based direct venture investment arm of Pequot Capital Management, Inc., has approximately $2 billion of committed capital. The investment includes a future funding commitment.

The RSTN, a proprietary network of institutional and accredited investors engaged in buying and selling restricted securities, has more than 300 members, including global financial institutions, hedge funds, mutual funds and other institutional investors, who collectively manage over $200 billion in assets.

Restricted securities – including unregistered, control and affiliate stock and warrants – are a $1.2 trillion asset class, according to Depository Trust and Clearing Corporation (DTCC). Restricted securities are commonly issued through private placements, corporate mergers and reorganizations, and as compensation.

“Nearly two years before Wall Street began to focus on the private transaction market, the RSP team had identified the opportunity, formulated a strategy and launched a highly successful marketplace,” said Lawrence D. Lenihan, Jr., co-head of Pequot Ventures and a newly-appointed member of Restricted Stock Partners’ Board of Directors. “This business fits perfectly with the investment philosophy of Pequot Ventures – to partner with innovative, market-leading companies. Pequot looks forward to helping RSP scale the business to accommodate the growing demand for privately negotiated transactions of restricted securities and other illiquid assets.”

Nearly 300 buyers and sellers have already completed close to 400 transactions on the RSTN, representing more than $200 million in transaction volume. While the RSTN has been successful to date, Pequot Ventures believes its infusion of capital and the conversion to an electronic platform will create the foundation for much faster growth.

“Pequot Ventures’ strategic expertise, market insights and well-established financial services relationships, coupled with its deep capital resources, will greatly assist our efforts to develop a cutting-edge trading system and expand our distribution channels and partnerships on Wall Street,” said Barry E. Silbert, founder and CEO of Restricted Stock Partners. “I am extremely pleased to partner with Pequot Ventures, particularly during this critical growth stage of our business.”

The electronic trading platform, which is currently in a beta test with a number of institutional clients, is expected to launch later this year. In addition to providing an improved price discovery and bidding process, the trading platform will further support the administrative and settlement functions provided by Restricted Stock Partners, which facilitates all aspects of the closing process for privately-negotiated transactions on the RSTN.

“Since the launch of the RSTN in October 2005, we have succeeded in creating the largest and most robust platform for private transactions in restricted and illiquid securities,” Silbert said. “The electronic trading platform, which will automate the trading and settlement process, is the logical next step and will enable us to grow more rapidly.”

About Restricted Stock Partners

Restricted Stock Partners (RSP) of New York, N.Y., a division of Green Drake Capital Corp. (Member FINRA/SIPC), manages the Restricted Securities Trading Network (RSTN) (www.RestrictedSecurities.net), the largest marketplace for restricted securities in the United States. Through RSTN, RSP provides liquidity and trading solutions to institutional and accredited investors who hold restricted securities positions in public and private companies. RSP also offers other hedging and monetization services, such as Rule 144 sales and loans secured by restricted stock, as well as administrative and settlement support for restricted securities transactions. For more information visit www.RestrictedStockPartners.com.

About Pequot Ventures

Pequot Ventures, which has more than $2 billion in capital commitments, is the direct venture investment arm of Pequot Capital Management, Inc. Pequot Ventures is focused on today’s most dynamic startup and growth-stage companies in the technology industry. For over a decade, Pequot Ventures has partnered with talented entrepreneurs to build market-leading companies across a range of industry sectors to create sustainable longterm value. Recent investments include: Netgear, Inc.(NASDAQ NTGR); First Advantage Corp. (NASDAQ: FADV); StubHub, Inc (Acquired by eBay, Inc. (NASDAQ: EBAY)); Netegrity, Inc. (NASDAQ: NETE) / Acquired by CA Inc. (NYSE: CA)); Flarion, Inc. (Acquired by Qualcomm, Inc. (NASDAQ: QCOM); and OutlookSoft Inc. (Acquired by SAP AG (NYSE: SAP)). Pequot Ventures brings energy, insight and substantial sector expertise to its portfolio companies through the collective intellectual capital, deep operating experience, and extensive network of its investment team. The firm leverages its unique multi-billion dollar presence across both public and private equity markets to help build competitive, sustainable businesses in partnership with the founders and management teams of its portfolio companies. Pequot Ventures is headquartered in New York City. For more information, please visit www.PequotVentures.com.