Chanticleer Holdings Signs Letter of Intent to Purchase Investment Portfolio of St. Cloud Capital Partners, LP


CHARLOTTE, N.C., Sept. 26, 2007 (PRIME NEWSWIRE) -- Chanticleer Holdings, Inc. (OTCBB:CEEH), a business development company, today announced it has signed a letter of intent to acquire 100 percent of the outstanding equity interest in St. Cloud Capital Partners, LP (Fund I) and its general partner, SCGP, LLC, including its investment portfolio. In exchange, St. Cloud Capital Partners, LP and SCGP, LLC, will receive Chanticleer common stock based on Chanticleer's net asset value as of September 30, 2007.

The St. Cloud Capital Partners, LP portfolio contains approximately 20 investments, both public and private, in a diversified group of industries. Total fund assets amount to approximately $40 million. St. Cloud Capital Partners, LP will continue to operate as a licensed Small Business Investment Company.

Completion of the transaction is subject to customary closing conditions, including Chanticleer board and shareholder approval, St. Cloud Capital Partners, LP approval, and U.S. Small Business Administration approval. Also subject to shareholder approval, the principals of St. Cloud Capital and Chanticleer Holdings intend to externally manage the fund. The transaction is expected to close in the fourth quarter of 2007.

Michael Pruitt, chief executive officer of Chanticleer, said, "Completing this acquisition will allow for the significant expansion of Chanticleer's investment capacity. The Fund I portfolio is a solid, well-diversified group of businesses. In addition, the SBIC license provides Chanticleer with the ability to source a significant amount of attractively priced debt financing. The St. Cloud team of professionals has delivered consistent portfolio returns."

About Chanticleer Holdings, Inc.

Chanticleer Holdings is a closed-end investment company that invests in value-based opportunities that are typically either privately held or considered small or micro cap publicly traded companies. Chanticleer's investment objective is to generate both current income and long term capital appreciation through debt and equity investments. Chanticleer Holdings, Inc. has elected to be treated as a business development company under the Investment Company Act of 1940 ("1940 Act").

For more information about Chanticleer Holdings, please visit www.chanticleerholdings.com.

About St. Cloud Capital, LLC

St. Cloud Capital is a Los Angeles-based private equity firm that provides growth capital to the lower middle market (companies with annual revenues between $10 million and $100 million) throughout North America. St. Cloud invests in companies across a wide range of industries in every layer of the capital structure, including senior secured debt, subordinated debt, and preferred and common stock. St. Cloud's investment discipline includes control and non-control investments, and in each case involves partnering with a strong existing management team or experienced industry entrepreneur. With over 100 years of relevant business and investment experience, St. Cloud's principals can move quickly to provide customized investment structures that fit the specific needs and resources of each company.

For more information about St. Cloud Capital, please visit www.stcloudcapital.com.

This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statement of historical fact (including statements containing the words "believes," "plans," "anticipate," "expects," "estimates," and similar expressions) should also be considered to be forward-looking statements. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events.


            

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