Stalking Horse Bid: "This method allows the distressed company to avoid low bids on its assets. Once the stalking horse has made its bid, other potential buyers may submit competing bids for the bankrupt company's assets. In essence, the stalking horse sets the bar so that other bidders can't low-ball the purchase price.



Long Island City, N.Y., Sept. 21, 2009 -- Cynergy Data announced today that it has received approval from the United States Bankruptcy Court for District of Delaware for its proposed bidding procedures and timetable for the sale of substantially all of its assets.



As part of its Chapter 11 sale process, Cynergy Data has entered into an asset purchase agreement with "stalking horse" bidder Cynergy Holdings, LLC, an investment vehicle that is managed by The ComVest Group, a private investment firm focused on providing debt and equity solutions to middle market companies. ComVest is a leading provider of capital to the financial technology markets and owns controlling interests in a number of companies in the electronic payment processing industry, including Pipeline Data, CardAccept, AirCharge, SecurePay and Northern Merchant Services.



Pursuant to the Bankruptcy Court approved procedures, other parties have an opportunity to submit bids on or before October 2, 2009 at 4:00 p.m. (EST). If no additional bids are received by the bid deadline, Cynergy Data will immediately seek Bankruptcy Court approval of its sale to Cynergy Holdings, LLC. If additional bids are received, an auction will take place on October 5, 2009, at the offices of the company's legal counsel Nixon Peabody LLP in New York. A hearing to approve the sale is scheduled for October 7, 2009, and Cynergy Data expects to close the sale shortly thereafter.



According to Cynergy Data's chief executive officer, Marcelo Paladini, "We are pleased by Judge Gross' decision to approve our proposed bidding procedures. This is an important step to ensure that we will be able to complete our sale process and restructuring as quickly as possible, and begin the next stage in our company's history. We intend to continue providing world-class products and services to our merchants and ISO partners during this process and beyond."



In addition to approving Cynergy Data's sale procedures, during the September 15 hearing the Bankruptcy Court granted other motions seeking various forms of relief, including the company's retention of professionals to assist it during its Chapter 11 proceedings and its continued use of postpetition financing. This relief will allow Cynergy Data to operate in the ordinary course during its Chapter 11 restructuring.



On Tuesday, September 1, 2009, Cynergy Data and two subsidiaries filed voluntary petitions for business reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Honorable Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware is presiding over Cynergy Data's chapter 11 proceedings. Copies of court documents are available at http://www.kccllc.net/cynergydata . Additional information regarding Cynergy Data's restructuring is available at www.cynergydata.com/restructuring .



About Cynergy Data



Launched in 1995, Cynergy Data is a merchant credit card processing service provider that gives business owners excellent customer support and unparalleled merchant services. The company emphasizes honest, service-oriented business practices and customer-friendly products and services. During the past 14 years, Cynergy Data has rapidly expanded from a two-person operation to one that employs over 130 service-oriented team members. Headquartered in New York City, Cynergy Data manages a portfolio of nearly 80,000 merchants processing in excess of $10 billion annually.



About The ComVest Group



The ComVest Group is a leading private investment firm focused on providing debt and equitysolutions to middle-market companies with enterprise values of less than $350 million. Since 1988 ComVest has invested more than $2 billion of capital in over 200 public and private companies worldwide. Through its extensive financial resources and broad network of industry experts, ComVest offers its portfolio companies total financial sponsorship, critical strategic support, and business development assistance. ComVest additionally owns controlling interest in Pipeline Data, CardAccept, AirCharge, SecurePay and Northern Merchant Services; all credit card merchant servicing organizations. For further information on ComVest, please contact Partner Daniel Nenadovic at 561.727.2070 or via e-mail at: danieln@comvest.com.