Irvine, CA – May 19, 2008 – Alerion Capital Group, a technology focused private equity group, and Merit Capital, a mezzanine and equity provider, have partnered with management to invest in VXI Technology Inc. (VTI). Irvine, California based VTI, provides test instruments for a wide variety of industrial, military and commercial applications. With customer applications ranging from testing electronic devices to super-structures to launch vehicles, the company has established a worldwide reputation for providing high-density, modular products for functional test and data acquisition.

Paul Dhillon, President and CEO of VTI, heads up the highly experienced senior management team that initiated the partnership. "We have a solid array of products forged over a long history in the industry and are excited to leverage the expertise the Alerion and Merit team bring to VTI. The partnership focuses additional resources on expanding the company's recently launched, innovative Microwave and LXI product lines."

The Microwave product line features an integrated design wizard, simplifying the complex process of designing microwave test systems. The LXI product line reflects VTI’s key role in creating the newly emerging Ethernet LAN standard (LXI) for distributed and remote testing in the instrumentation industry.

"VTI's strength of precision test instrument design and ability to meet a broad spectrum of customer requirements fits well with our technology focus and expertise. We are proud to partner with an innovative and experienced team, in building on the company's demonstrated success. We look forward to growing the business and in continuing to support the needs of their loyal customers," states James Unruh, Alerion's Founding Principal.

About Alerion Capital Group, LLC
Alerion Capital Group is a private equity organization located in Scottsdale and Salt Lake City. Alerion invests in technology sector later-stage, middle market companies located in the Western United States. Alerion provides investment capital coupled with strategic business expertise gained through the group’s extensive management experience at leading firms, including Unisys, Oracle, Hewlett-Packard, Memorex, Fairchild, and Banc One Capital. www.alerion.com

About Merit Capital Partners
Merit manages over $1B through four institutionally sponsored limited partnerships. Headquartered in Chicago with an office in Phoenix, Merit is a national mezzanine and equity investor in middle-market companies. Merit typically invests alongside management teams in management buyouts, recapitalizations, leveraged acquisitions, and internal expansions. www.meritcapital.com

About VXI Technology, Inc. (VTI)
As a leader in functional test and data acquisition systems, VTI provides over 200 subsystems and components forming the core technology for a broad spectrum of standard and custom integrated test systems. The company’s highly acclaimed test instruments are designed to meet the needs of the most demanding customers and applications spanning aerospace, automotive, avionics, defense, industrial automation, medical, space, and communications equipment. VTI products are sold and supported worldwide thru VTI and the VTI Certified Partner Network. VTI is a sponsor member of the VXI Consortium and a strategic founding member of the LXI Consortium. www.vxitech.com