National Economic Opportunity Fund

CHATTANOOGA, TENNESSEE (December 16, 2005) - The National Economic Opportunity Fund (NEOF) has commenced implementation of its second community development franchise, expanding on the successful franchise model first introduced in Laredo, Texas in 2004. To accomplish this, NEOF has facilitated agreements with four "platform" businesses to support the acquisition of commercial space in the 28th Legislative District CDC's (the 28th CDC) MLK Project. NEOF is also pleased to announce that the 28th CDC has been awarded a Commercial Revitalization Deduction by the Chattanooga Renewal Community, the value of which will be passed through to these platform businesses.

The four businesses are Informed Care, Inc, a telemedicine company which provides aftercare services for diabetes patients; College Crib of Chattanooga, a minority owned retailer of college-oriented clothing, gifts and specialty items; cccInteractive, Inc, a community development telecommunication operation; and NEOF itself, which will facilitate neighborhood scale financial services on an ongoing basis for the 28th CDC.

The NEOF model is a service-disabled veteran driven tool which accelerates economic growth by introducing proven platform businesses into low income communities. As these companies grow and prosper, they create a critical mass of successful development which supports other new businesses. NEOF expects to expand its model in multiple regions across the country in 2006.

According to Forestine Watson-Haynes, Executive Director of the 28th CDC, "NEOF has helped us with every aspect of project development, including assistance with the financial structuring and acting as an intermediary with prospective commercial investors. This is the first commercial project we've done, so having NEOF as a part of our team has been an invaluable asset."

As a community partner, the 28th CDC used its access to NEOF's pre-existing platform business relationships to accelerate the often frustrating real estate search process. Also, NEOF is committed to providing critical entrepreneurial support for its platform businesses, which will enhance the project's chances for commercial success. Finally, NEOF's model ensures that the 28 th CDC will share in the ownership of these businesses, which could provide an ongoing source of funds for further development.

According to James Mingey, President and CEO of NEOF, "I think entrepreneurial mentoring is one of the most important missing elements for small businesses in low-income communities. I am excited that NEOF has the opportunity to provide this valuable service in Chattanooga ."

The 28th Legislative District Community Development Corporation is a private, locally initiated non-profit community development corporation created to improve the quality of life for all residents of the community and to act as a catalyst for economic and community development for the communities within the 28th Legislative District. The 28th CDC was chartered in 1993 in the State of Tennessee , and received its 501 (C) (3) tax-exempt status in 1995. An 18 member Board of Directors governs it presently with the state legislative representative for the district serving as an additional non-voting honorary member.

The National Economic Opportunity Fund is a community development financial intermediary, which has developed a specialized, public-private franchise model focused on accelerating economic development in low-income communities across the country. To accomplish this goal, NEOF has aligned local community development interests with the forces of national advocates such as the Business Roundtable, the Minority Business Roundtable, the National Community Reinvestment Corporation and the Veterans Corporation.