For Release at 8:45 A.M. EST on October 23, 1998

 MLC Holdings Raises $10 Million in Growth Equity from Thayer Capital Partners
     Investment Strengthens Balance Sheet and Positions Company for Growth

RESTON, VA - October 23, 1998 - MLC Holdings,  Inc.  (Nasdaq:  "MLCH") announced
today that Thayer Capital Partners has invested $10,000,000 in an equity private
placement through the purchase of 1,111,111 shares of unregistered  common stock
of MLCH at a price of $9.00 per share.  The purchase  price is at a premium over
yesterday's close and the Company's 10-day trailing average. Thayer's investment
will  represent  approximately  15% of the  outstanding  common stock of MLC. In
addition to the initial  equity  investment,  Thayer also  received a warrant to
purchase  1,090,909  shares of MLCH common stock at an exercise  price of $11.00
per share. The warrant expires December 31, 2001.

"This  transaction  strenthens MLC's balance sheet and helps continue our strong
growth,"  said Phillip G. Norton,  Chairman,  President and CEO of MLC. "The new
equity allows us to retain more leases on our balance sheet which should provide
higher margin  opportunitites for our business.  Thayer's investment should also
enable us to  increase  our line of credit to  facilitate  our  expanding  lease
origination  volume.  In addition  to the equity  capital,  Thayer will  provide
experience  and  expertise  in mergers  and  acquisitions  which  should help us
achieve our plan of becoming a more significant player in the industry."

Mr.  Norton  added,  "We are pleased to be able to add to our capital  base at a
time when many specialty  finance  companies have been  particularly hard hit by
the turmoil in the securitization  markets. MLC has not used securitization as a
financing  mechanism  and the  Company has  avoided  the  liquidity  and pricing
pressures affecting other specialty finance business."

Commenting on the  investment,  Frederic V. Malek, a founding  partner of Thayer
Capital, said, "We  were  atracted to MLC because of its  excellent  history of
growth  in  lease  originations  and   profitability.   We  feel  that  MLC  has
differentiated  itself among other leasing competitors with its asset management
services that position the company for continued rapid growth in the IT leasing
sector."

Dr. Paul G. Stern,  a partner of Thayer,  has joined  MLC's Board of  Directors,
increasing  Thayer's  representation  to two board  seats.  Rick  Rickertsen,  a
partner at Thayer,  is  already a member of the board.  Dr.  Stern is the former
Chairman and Chief Executive  Officer of Northern Telecom Ltd.  ("NT"),  and the
former  President and COO of Burroughs  Corporation.  He currently serves on the
Board of Directors of Dow Chemical Company ("DOW"), Derby Cycle, LTV Corporation
("LTV") and Whirlpool Corporation ("WHR"), as well as serving as Chairman of two
Thayer  investments,  Aegis  Communications  Group,  Inc.  ("AGIS") and Colorado
Prime. "Paul brings valuable experience and will be a great asset to MLC's Board
of  Directors.  I feel that our strong  independent  board members have provided
great  assistance,  and I expect that Paul's  addition  will help us realize our
growth potential," stated Mr. Norton.

Thayer Capital Partners is a private equity investment firm based in Washington,
D.C.  Thayer manages Thayer Equity  Investors III, L.P., a $364 million  limited
partnership, raised in 1996 by Thayer partners Mr. Malek, Mr. Rickertsen and Dr.
Stern. Thayer Equity Investors III focuses its investments in industries such as
IT services, travel & leisure services, and outsourced manufacturing and to date
has acquired  seventeen  businesses in eight portfolio  companies.  Other public
Thayer portfolio companies include Software AG Systems, Inc. (NYSE: AGS), Global
Vacation  Group,  Inc.  (NYSE:  GVG),  and  Aegis  Communications   Group,  Inc.
(NASD:AGIS).

"Safe Harbor"  Statement under the Private  Securities  Litigation Reform Act of
1995:  The statements  contained in this release which are not historical  facts
may be deemed to contain forward-looking statements. Actual results may vary due
to the following risks and uncertainties,  including, without limitation, demand
and  competition for the Company's lease financing and equipment sales and asset
management  services,  and the products to be leased or sold by the Company, the
continued availability to the Company of adequate financing,  the ability of the
Company  to  recover  its  investment  in  equipment  through  remarketing,  the
availability  of companies and  portfolios at reasonable  prices and on adequate
terms and conditions, and other risks or uncertainties detailed in the Company's
Securities and Exchange Commission filings. Investors are cautioned that current
financial results may not be indicative of future results.

                              For Investor Relations and Additional Information:

                                              Kley Parkhurst, Investor Relations
                                          (703) 709-1924/KParkhurst@MLCGroup.com
                                                            Steve Mencarini, CFO
                                          (703) 810-2596/SMencarini@MLCGroup.com
                                                                www.mlcgroup.com