MACC Private Equities Announces Results Of Fiscal Year 2007

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December 29, 2007

On December 28, 2007, MACC Private Equities Inc. (Nasdaq: MACC) announced its results of operations for its fiscal year 2007 and the completion of its annual audit.

For fiscal year 2007, MACC recorded total investment income of $996,627, as compared to total investment income of $1,190,044 for fiscal year 2006. The decrease in investment income was the net effect of a $153,374 decrease in interest income and a $40,043 decrease in dividend income. Total operating expenses for fiscal year 2007 were $1,853,607, as compared to $2,211,196 for fiscal year 2006. The decrease in total operating expenses is the net effect of a $418,610 decrease in interest expense, a $96,135 decrease in management fees, a $130,215 increase in incentive fees, a $44,331 increase in professional fees, and a decrease of $17,390 in other expenses. Net investment expense for fiscal year 2007 was $786,487, as compared to a net investment expense of $1,171,152 in fiscal year 2006.

Net realized gain on investments for fiscal year 2007 was $1,351,456 as compared to a net realized gain on investments of $3,645 for fiscal year 2006. During the fiscal 2007, MACC had unrealized depreciation of $1,644,353 at September 30, 2007, a change of $662,393 from the $981,960 of unrealized depreciation at September 30, 2006.

These items resulted in a net decrease in net assets from operations at the end of fiscal year 2007 of $97,424, as compared to a net decrease in net assets from operations at the end of fiscal year 2006 of $2,046,741. MACC net asset value at September 30, 2007, was $11,520,810 as compared to $11,618,234 at September 30, 2006. MACC’s net asset value per share decreased to $4.67 at September 30, 2007, from $4.71 at September 30, 2006.

MACC reported in its Annual Report filed as an exhibit to its Form 10-K on December 28, 2007, that in fiscal year 2007, MACC’s management made no new investments and continued the sale of portfolio investments, expense reduction and repaid all of its outstanding U.S. Small Business Administration guaranteed debentures in the principal amount of $8,790,000. MACC entered into a term loan in the amount of $6,250,000 and a revolving loan to borrow up to $500,000, with Cedar Rapids Bank & Trust Company. These funds were utilized to repay its outstanding debentures. MACC will continue to evaluate alternatives to maximize shareholder value, which may include seeking additional capital to resume making new portfolio investments or seeking shareholder approval to make liquidating distributions.

MACC is a business development company in the business of making investments in small businesses in the United States through its wholly-owned subsidiary, MorAmerica Capital Corporation. MACC common stock is traded on the Nasdaq Capital Market under the symbol “MACC.” — MACC Private Equities Inc.

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