StarInvest Participates in Magnetech's $4,000,000 Private Placement

Magnetech Ranked 58 in the 2004 of Inc. Magazine's 500 Yearly Ranking With Four-Year Average Sales Growth of 445.9%

StarInvest Group, Inc. today announced that they have participated in the $4,000,000 Private offering of Subordinated Secured Convertible Debentures of Magnetech Integrated Services Corp. StarInvest provided $800,000 in funding and will receive a convertible debenture and warrants.

Magnetech operates with five primary business groups and four Centers of Excellence in the Power Industry. The business groups are the Motor Group, Power Systems Group, Power Generation Group and the Field Services Group. The Centers of Excellence are Education and Training, MagnetTrac Asset Management, Predictive and Preventative Maintenance and Reliability Centered Maintenance. The company presently has eight locations, 240 employees and unaudited 2004 sales of $29 million. Magnetech ranked 58 in the 2004 Inc. 500 ranking with four-year average Annual Sales Growth of 445.9%. For more information see www.magnetech.com

StarInvest Group is a publicly traded Business Development Company (BDC) located in New York City. The company has implemented a strategy to create value for shareholders by investing in emerging companies that are positioned for strong industry growth or that have business models with strong cash flow potential. In addition to structuring financing requirements, StarInvest provides managerial assistance and strategic links between the Portfolio Companies enabling them to maximize their resources for marketing, business development, administration, public listing planning, and realization of their goals. For more information see www.StarInvestgroup.com

The preceding includes forward-looking statements, which involve known and unknown risks, and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Forward-looking statements above are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including, without limitation, competition, intellectual property rights, litigation, needs of liquidity, and other risks detailed from time to time in the company's reports filed with the SEC.

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