PEGASUS BLUE STAR FUND ANNOUNCES THE LAUNCH OF PEGASUS ELITE AVIATION

Aug 1, 2007

KINSTON, North Carolina (August 1, 2007) – Pegasus Blue Star Fund, together with Merrill Lynch Global Structured Finance & Investments and Mr. Jim Segrave, Jr., are pleased to announce the launch of Pegasus Elite Aviation, an innovative and dedicated domestic private jet charter business.

Pegasus Elite operates a 100% owned charter fleet of light, medium and heavy Gulfstream and Hawker aircraft. Headquartered in Kinston, North Carolina, Pegasus Elite is Wyvern Wingman certified and an ARG/US Platinum Rated Operation.

Mr. Jim Segrave, President of Pegasus Elite stated “I am excited about the opportunity to grow Pegasus Elite Aviation into the leading jet charter company. I’m proud to have been provided the opportunity to execute on the business plan that Paul Parmar and Pegasus Blue Star Fund created.”

The charter company is financed through a combination of equity and debt financing from Pegasus Blue Star Fund and Merrill Lynch.

“Pegasus Elite is the first large scale pure jet charter business. Without owner-related restrictions on our jet charter fleet, we offer incredible value to both corporate and retail customers” said Mr. Paul Parmar, Chairman of Pegasus Blue Star Fund. “We believe that Pegasus Elite will become the General Aviation industry benchmark for safety, service and operations.”

With a fleet of Gulfstream G-IVs and G-Vs and Hawker 400XP, 800XP and 1000s, Pegasus Elite will be the pinnacle of luxury service while maintaining competitive pricing through its proprietary one way, point-to-point pricing model.

About Pegasus Blue Star Fund

Pegasus Blue Star Fund (www.pegasusbluestarfund.com) is a private investment firm that focuses on acquiring and managing a portfolio of small to mid-sized service oriented companies. While maintaining no rigid industry focus, Pegasus Blue Star Fund aims to invest in industries where it has a proven track record, including healthcare, aerospace and defense, media and entertainment and consumer products. Pegasus Blue Star Fund was founded by Mr. Paul Parmar.