WESTBOROUGH, MA insci-statements.com, Corp. (Nasdaq: INSI), today announced that it is completing arrangements for $3.5 million in new financing, which it believes provides sufficient financial resources to meet its foreseeable working capital needs. The new financing includes a $1.5 million asset based financing with Silicon Valley Bank; and a commitment for $2 million in convertible debt financing from Selway Partners, LLC ("Selway"), a technology holding company engaged in building technology-oriented companies and an insci-statements. com shareholder, and CIP Capital, LLC of Wayne, Pennsylvania, a venture capital firm associated with Safeguard Scientifics (Nasdaq: SFE). The Selway/CIP financing is comprised of a $500,000 loan, to be followed shortly by an additional $1.5 million loan convertible into preferred stock. This financing is subject to completion of final documentation at which time the Company will disclose its specific terms. The right to convert this loan to preferred stock will also be subject to prior shareholder approval. The Company is also closing its InfiniteSpace.com subsidiary and has written off the two acquisitions done to support its portal services strategy. These non-cash write-offs and the costs of closing Infinitespace.com along with other costs will be recorded in the second fiscal quarter ended September 30, resulting in a substantial loss for the quarter. The Company also expects to report revenues for this year's second quarter that are substantially below revenues in the same quarter last year due to the diversion of selling efforts to InfiniteSpace activities during the quarter. The company also announced that it has named veteran document management software executive Lori R. Frank, 43, President and Chief Executive Officer, effective immediately, replacing E. Ted Prince, Ph.D., 53, who has resigned as Chairman and CEO and is remaining a Director. Ms. Frank also joins the Board of Directors. Ms. Frank said, "Both the incoming investors and myself see an enormous opportunity with insci-statements.com. I believe that we can capitalize on the large emerging market for ASP-based technologies. With marquee investors Selway and CIP behind us, we believe we can make a real mark in the industry."