MCM Capital Acquires STACI

Transaction Positions Management to Pursue Strategic Growth
March 2006

CLEVELAND, OH – MCM Capital Partners II (“MCM”), a Cleveland, Ohio-based private equity firm and a leading investment firm dedicated to investing in the lower middle market, is pleased to announce its acquisition of STACI, a rapidly growing global provider of engineering, outsourcing and supply chain services headquartered in Ft. Lauderdale, Fla.

MCM acquired STACI with senior financing provided by Columbus, Ohio-based Huntington Bank. Stonehenge Partners, also based in Columbus, provided subordinated debt and equity. Financial terms of the transaction are not being disclosed.

STACI, founded in 1995, has qualified and developed close relationships with more than a dozen joint venture factory partners in China. STACI provides businesses with access to the benefits and resources of an international purchasing office. This office provides quality control, engineering, program and materials management, logistics and supply chain services typically available only to Fortune 1000 companies. With sales, customer service, and administrative offices located throughout the United States, Hong Kong and Europe, the Company services a diverse and loyal customer base. Leveraging the talents of its highly dedicated professional staff of nearly 100 associates in the U.S., Germany, Guandong, PRC and Hong Kong, STACI offers superior customer support, program management, on-time delivery performance, quality performance, and RFQ turnaround speed and accuracy across a broad spectrum of components and manufacturing services, including printed circuit boards, electronic components, heat sinks, sheet metal fabrication, plastic injection molding, castings, extrusions and electronic manufacturing services.

Moving forward, STACI’s management team will leverage these advantages to nurture organic growth by broadening its service offerings, expanding its customer base, and further developing joint venture factory arrangements in China and other low-cost countries. MCM also plans to leverage STACI’s strengths to assist its existing and prospective portfolio companies in developing and executing their respective Asian strategies.

“STACI has built a talented management team and technically skilled employee base that delivers consistently impressive results,” said Jay Poffenberger, Managing Director and Principal of MCM. “With the addition of Dennis Docherty as Chief Executive Officer and President of the Company and other key recruits, STACI is well positioned with even greater management depth.”

“STACI possesses a unique and highly scalable business model,” said Mark Mansour, Managing Director and Principal of MCM. “This model provides businesses with the ability to turn threats into opportunities presented by the global economy. Our goal is to raise the Company’s visibility, continue to invest in broadening its service capabilities, and accelerate its already impressive organic growth rate.”

“STACI has assembled a unique business model to address virtually any supply chain issue that companies face when trying to go it alone in China and elsewhere around the world,” said Dennis Docherty, CEO and President of STACI. “Whether it is component purchases or total turnkey projects, STACI has established a proven track record during its 10-year history of helping its customers create value.”

MCM is a Cleveland, Ohio-based private equity investment firm with origins dating back to 1979, whose principals and founders include nationally recognized CEOs of public and private companies with proven track records of building and managing successful companies. MCM invests in niche smaller middle-market companies that are well regarded within their respective industry and whose management teams have demonstrated a track record of achieving growth. The Firm’s long-term investment philosophy is to enhance management’s ability to grow companies by providing equity capital in concert with access to strategic human resources.

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