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Equipment Reliabilty Management Products & Service

A well established private equity group is forming the largest independent provider ("The Company") of Equipment Reliability Management ("ERM") for commercial and industrial businesses in the United States through the acquisition of five well-established industry leading companies. These companies include the internationally recognized and preeminent thought leader for equipment reliability training and professional services and four best in class regional lubricant distributors strategically located in the Mid West and Gulf Coast whose territories represent approximately 50% of the US lubricant market. The Company's combination of high-value ERM services and "one stop shop" ERM product distribution along with the proven ability to establish strong and sustainable customer relationships will distinguish The Company as the clear market leader.

With projected 2009 revenue of $232 million and $15 million of EBITDA for the five platform companies, The Company's objective is to more than triple EBITDA within the next five years from internal growth. The Company is seeking an aggregate of $72 million in senior equity and senior bank debt with the capital allocation to be determined based on discussions with investors and lenders. The selling shareholders will be taking back $18.6 million in junior convertible preferred stock as part of the purchase price of $79.6 million for the five platform companies. The balance of the uses for capital is for funding of transaction fees and expenses and a provision of funding earn-out payments which are subject to realization of specific earnings targets. With an objective of closing before the end of 2009, meetings will be scheduled with a limited number of qualified institutional investors and lenders.