Recapitalization, Name Change, Intent to Acquire Storage Elements

Cyclone Holdings, Inc. Announces Recapitalization, Name Change and New Trading Symbol and Intention to Acquire Storage Elements, Inc. MINNEAPOLIS, MN -- (BUSINESS WIRE) - March 7, 2007 - Cyclone Holdings, Inc. (the "Company" - Pink Sheets: CLHD), announced today a name change to "Digitiliti, Inc.," the completion of a recapitalization (the "Recapitalization"), a new trading symbol (Pink Sheets: DIGI) and its intention to acquire Storage Elements, Inc. ("Storage Elements"), its principal shareholder. The Company's Cusip Number was 232533 10 9; and the new Cusip Number reflecting the Recapitalization and name change is 253895 10 6. The planned merger was subject to the completion of the Recapitalization that reduced the outstanding common stock of the Company to approximately 150,000 shares (excluding the shares of the Company that are owned by Storage Elements and that will be cancelled on the closing of the merger), and with the dividend that was a component of the Recapitalization assuring that no stockholder of record would be reduced below 200 shares. Each beneficial owner at Depository Trust Company participants was considered "a stockholder of record" for the purposes of the Recapitalization, subject to each such participant providing the Company's transfer agent, Interwest Transfer Company of Salt Lake City, Utah, notice and evidence of the number of beneficial owners on or before April 6, 2007. Outstanding common stock of Storage Elements will be exchanged on a one for one basis for common stock of the Company that are "restricted securities" as defined in Rule 144 of the Securities and Exchange Commission; and all outstanding convertible securities like options, warrants or convertible notes of Storage Elements will remain outstanding, but will be assumed by the Company, and common stock of the Company will be issued on exercise or conversion of these convertible securities, all as "restricted securities." The transaction is subject to board and stockholder approval of Storage Elements. A stockholders meeting of Storage Elements is planned for late March or early April to consider and act upon the merger. No assurance can be given that stockholder approval will be obtained or that the merger transaction will be completed. About Storage Elements: Storage Elements, founded on October 3, 2003, focuses on providing cost effective data protection solutions to enterprises and organizations of all sizes. The product solution set is comprised of Mythos, an internally developed Storage Management Solution, and digitiliti, a web based on demand backup service that backs up mission critical data for companies of any size. About Cyclone Holdings: The Company currently has no business operations, assets or liabilities. On April 5, 2006, it became a holding company under the Section 251(G) of the Delaware General Corporation Law following a merger of Themescapes, Inc., a Delaware corporation (formerly known as "Scotty's Original Brew"), with and into Bulldog Merger, Inc., a Delaware corporation, under which the holders of Themescapes common stock were issued one share of the Company's common stock. Forward Looking Statements: This release contains forward-looking statements. Actual results may differ from those projected due to a number of risks and uncertainties, including, but not limited to the possibility that some or all of the pending matters and transactions considered by the Company may not proceed as contemplated. These statements are made based upon current expectations that are subject to risk and uncertainty. The Company does not undertake to update forward-looking statements in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found at www.pinksheets.com. Contact: Mark Savage, President, at: 952-545-7962.