POLITICAL PULSE ACQUIRES CAPITOL WEEKLY; ANNOUNCES STRATEGIC PARTNERSHIP WITH AROUNDTHECAPITOL.COM

June 30, 2005 SACRAMENTO, Calif. -- Political Pulse Inc. today announced the acquisition of Capitol Weekly Inc.

The new company, Capitol Pulse Inc. will publish Capitol Weekly, redesigning the newspaper's print and online editions, and increase the paper's circulation. The publication's focus will expand to include more coverage of state politics, and the California political community.

The company will also continue to publish the six monthly neighborhood newspapers currently published by Capitol Weekly Newspaper Group, and the Political Pulse and Education Beat newsletters.

Arnold York will serve as publisher of the new company. Anthony York will serve as director of editorial operations. Capitol Weekly founder Ken Mandler will remain with the new company as a consultant to assist in the transition.

"We're incredibly excited about this new venture," said Arnold York. "We look forward to helping take Capitol Weekly to the next level, and providing California with a source of first-rate, insider political news."

"We feel there is a need for a publication dedicated exclusively to California politics and policy," said Anthony York. "We want Capitol Weekly to be the community newspaper for the California political community, while maintaining Capitol Weekly's reputation as a source for state jobs and public information."

The new company announced that John Howard will serve as the company's managing editor. Howard has covered the Capitol for more than 20 years, serving in the Capitol bureau of the Associated Press, Capitol Bureau chief of the Orange County Register and senior editor of the California Journal.

Capitol Pulse Inc. also announced a strategic partnership with AroundTheCapitol.com, the state political Web site founded by Scott Lay. Lay and Anthony York co-author the daily political news digest The Roundup (www.capitolbasement.com).

AroundTheCapitol and The Roundup will be integrated into a redesigned state political news portal, which will coincide with the relaunch of Capitol Weekly later this summer.