Waterside Capital Corporation (the “Company”) has recently elected to discontinue its practice of voluntarily filing annual reports on Form 10-K, quarterly reports on Form 10-Q, and periodic reports on Form 8-K under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company had agreed with the underwriter participating in the initial public offering of the Company’s securities to file such reports for a period of five years following the offering, and this obligation expired with the fiscal quarter beginning January 1, 2003. The Company will continue to file all reports required to be filed under the Exchange Act, and the rules and regulations promulgated thereunder, by investment companies registered under the Investment Company Act of 1940, as amended.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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