Harris Hoimes Sutton and Allen, Inc. (HHSA)HHSA is a private equity investment firm that seeks to acquire established middle market companies. The firm which is comprised of experienced CEOs as well as financial/transactions professionals focuses on aggressively growing its portfolio companies through internal growth as well as through acquisitions.

HHSA pursues a value added strategy through the acquisition of, or merger with manufacturing companies where one or more of the following are available:

Harris Hoimes Sutton and Allen, Inc. (HHSA)

Positioned within a fragmented industry where consolidation is possible, together with possible distribution, manufacturing, purchasing, supply-chain/outsourcing, or other synergies.

Potential for significant operating improvements,

Broader channel and geographic distribution, and

Better use of underutilized brands.

HHSA has substantial experience in the execution of such value added strategies both from an investment management perspective as well as from the hands on operating expertise of its principals.

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Investment SizeInvestment SizeLower middle market, with a preference for companies with a minimum EBITDA of $2 million.

Investment FocusInvestment FocusHHSA invests in industries where basic manufacturing/supply strength can be leveraged. Its focus is on industries where value can be derived both internally and from industry acquisitions.

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HHSA invests in consumer as well as institutionally oriented industries. While the firm’s focus is broad-based, it has specific experience in the manufacturing/supply and distribution of food, and institutional/educational furniture and casegoods industries. The firm is particularly interested in these segments together with home improvement, home building products, sporting goods, and pet products segments.

HHSA has been particularly adept at fostering the aggressive growth of consumer oriented companies in which it has had substantial experience and success. A deep understanding of the issues, strategic and tactical, operational and financial, which promote such success are at the core of what differentiates HHSA from other firms.

Investment StrategyInvestment Strategy

Consumer as well as institutional industries

where our strategic expertise can accelerate internal

growth and growth through acquisitions.

Consumer as well as institutional industries

where our strategic expertise can accelerate internal

growth and growth through acquisitions.

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The firm focuses on middle market companies with histories of consistent profitability and revenue growth. The lower middle market, in particular, is a category within which HHSA has been successful at promoting growth and adding value. EBITDA of at least $2 million is preferred.

It is the view of HHSA that management is a key parameter to sustainable success. In this regard, HHSA endeavors to maximize the effectiveness of management through a strategic working relationship with and an understanding of management’s key objectives. HHSA seeks exceptional talent, experience, hard work and a passion for winning in the managers of its investments.

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Consumer as well as institutional industries

where our strategic expertise can accelerate internal

growth and growth through acquisitions.

Consumer as well as institutional industries

where our strategic expertise can accelerate internal

growth and growth through acquisitions.

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Core ValuesCore Values

The principal core values of HHSA are:

• Value Creation

• Transaction Structure

HHSA structures transactions in such a way as to accommodate the interests of the various stakeholders. Such structures accommodate shareholders who are presently active or passive and can be structured to address whether some or all shareholders wish to be active going forward or not. HHSA, given its operating background, is interested in transactions that come with or without highly qualified management.

HHSA creates value by employing those strategies and tactics successfully used both as operating executives in prior hands-on management assignments as well as those used in the course of managing its portfolio companies.

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HHSA serves the smaller company portion of the middle market, a segment which in its experience possesses significant opportunity for value creation.

HHSA operates in a highly competitive market where it has become increasingly difficult to source quality investments as well as to achieve consistently attractive returns. HHSA’s focus, on the smaller company middle market segment, generally permits it to find opportunities at lower than general market multiples. Furthermore, HHSA is able to demonstrate its ability to add value in such a way as to create a significant competitive advantage in attracting such investments as well as superior managers to operate them.

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Core ValuesCore Values• HHSA Participation

HHSA undertakes fewer transactions than many of its competitors. This investment strategy permits it to stay focused on working with individual portfolio investments to better understand their industry, competition, management, opportunities and risks. Further, HHSA has the ability to then implement more informed strategies as well as to review short and long term results in such a way as to ensure desired outcomes.

• Management Development

HHSA’s background is that of operating management. In this regard, to greater extent than many of its competitors, it focuses intently on providing each investment with the absolute best management team. HHSA is uniquely qualified to assess and implement this core requirement. The firm works with its management teams to train, mentor, guide, add resources from the outside or undertake whatever other activity necessary to achieve this objective.

• Team Environment

HHSA while relentlessly demanding of itself and its portfolio management operates as a team. Deep experience in the building of companies within this size range to the next level creates the ability and credibility to work effectively setting and achieving goals with portfolio company management.

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History & BackgroundHistory & BackgroundHarris Hoimes Sutton & Allen, Inc. (HHSA) is a private equity investment firm which seeks, with management, to aggressively grow established middle market companies through professional management, internal growth and synergistic consolidations. HHSA focuses on companies with revenues between $10 and $200 million.

HHSA pursues a value-added strategy through the acquisition of, or merger with, manufacturing companies where one or more of the following are available:

positioned within a fragmented industry where consolidation is possible, together with potential distribution, manufacturing, purchasing or other synergies

•

potential for significant operating improvements • potential for broader channel and geographical distribution, and • under-utilized brands for product extensions and licensing. •

HHSA has significant experience in undertaking consolidations within fragmented industries. Its experience, in this regard, extends to the operating and financial/structural issues which surround these strategies. HHSA, in the recent past, has conceived and executed successful consolidations in the baking/cookie industry as well as within the educational/institutional furniture business where their resulting industry positions were number three and one, respectively.

At present, HHSA investments are focused within the educational/institutional furniture industry. The firm’s investment focus has centered around low tech manufacturing businesses where it can pursue its value-added strategy as articulated above. The firm has always been particularly interested and directly experienced in the food products industry.

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Portfolio CompaniesPortfolio CompaniesArtco-Bell and American Desk based in Temple, TX, Midwest Folding Products, based in Chicago, Mohon International, based in Paris, TN, LSI Corporation of America, in Minneapolis and Texwood Furniture Corporation in Taylor, TX are leading manufacturers of educational furniture (classroom seating, mobile cafeteria tables, general K-12 school casework, science laboratory casework, library furniture and early childhood furniture). The companies are known for offering superior quality products and service at an excellent value. The companies sell their school furniture primarily through exclusive dealer networks, as well as through reps. They market related products, including stack chairs, folding tables, casework and mobile folding stages and risers to the hospitality, medical and research, public assembly, church and other markets.

The companies occupy either the lead or number two position in their respective segments of the educational furniture catagory (a sub-set of the institutional furniture industry). With a combined presence of over 200 years, their brand names are among the most respected in the educational and institutional furniture business. Approximate combined sales are $200 million. The companies are consolidated under a holding company named Sagus International, LLC.

United States with particular focus on the West coast and Mid-west.Geographic FocusGeographic Focus

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Wyman C. Harris

Jack Sutton

Telly C. Hoimes

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Michael T. Allen

Wyman C. HarrisWyman C. Harris Prior to the formation of Harris & Hoimes, as COO and later as CEO, Mr. Harris led Wyndham Foods, Inc. from its inception in 1985 to the third largest cookie company in the United States with sales of $300 million, through the acquisition and consolidation of eight regional companies. Mr. Harris integrated the acquired companies into a single operating unit which he managed on a day-to-day basis, increasing operating profit from $25 million to $40 million. Wyndham Foods was sold in 1990 for $335 million which provided investors with a return of $135 million on a $35 million investment within a four year period.

From 1969 to 1985 Mr. Harris compiled a distinguished record at General Foods in manufacturing, marketing, business development and general management in a wide variety of domestic and international food businesses.

Mr. Harris served six years in the United States Air Force in Germany and the Pentagon. He completed the Program for Management Development at Harvard Business School and received an M.S. in Industrial Engineering at Purdue University and a B.S. from the United States Air Force Academy.

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Wyman C. Harris

Jack Sutton

Telly C. Hoimes

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Michael T. Allen

Telly C. HoimesTelly C. Hoimes Prior to the formation of Harris & Hoimes, Mr. Hoimes served as a co-founding general partner of The Shansby Group. The Shansby Group is a private equity firm that focuses on the acquisition and operational improvement of manufacturers of branded consumer products. The Shansby Group manages in excess of $400 million of investor capital. Mr. Hoimes secured and led the firm's acquisitions related to its first fund and was active in building the firm's transaction flow and execution infrastructure. At the time of Mr. Hoimes’ departure from Shansby, the only investment which had been realized was The Famous Amos Chocolate Chip Cookie Company. This investment returned $60.6 million on a $3.5 million investment within three years.

Previously, Mr. Hoimes served as a vice-president at Oppenheimer & Co., Inc. focusing on mergers and acquisitions, as well as the private placement of debt and equity. He also worked for Mobil Oil Corporation where he was responsible for a group engaged in planning, budgeting, profitability forecasting and in-house consulting. Mr. Hoimes received an M.B.A. from New York University and a B.S. from Cornell University.

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Wyman C. Harris

Jack Sutton

Telly C. Hoimes

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Michael T. Allen

Jack SuttonJack Sutton Mr. Sutton is an experienced, results oriented CEO with a strong record of successful private equity porfolio management roles. Mr. Sutton over the past 15 years, as President and CEO, has lead Plush Pippin, The Cascade Cookie Company (on behalf of two investor groups), and Café Valley. In these roles he has created lean, highly effective companies that quickly generated market share and profitability in substancial excess of industry norms and investor expectations.

Previously, his background was principally in the grocery business where for 19 years, he was a senior executive with Safeway. Mr. Sutton has also undertaken assignments as CEO in the restaurant and hair salon businesses. He, in a number of these assigments, has served in a turn around capacity, although he has been both comfortable and highly successful in non turn around chief executive situations.

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Wyman C. Harris

Jack Sutton

Telly C. Hoimes

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Michael T. Allen

Michael T. AllenMichael T. Allen Prior to joining Harris & Hoimes Mr. Allen served as the Executive Vice President and Chief Financial Officer of Advanced H2O Inc., an early stage private label bottled water company. During his tenure at Advanced H2O Mr. Allen developed and executed the company’s financial strategy both raising a significant amount of capital as well as completely restructuring its balance sheet. Under Mr. Allen’s financial guidance, Advanced H2O grew significantly and improved its profitability.

Previously, Mr. Allen was the Vice President of Finance for The Cascade Cookie Company a national wholesale bakery. Mr Allen’s tenure there began in 1995 when the company was purchased by a group of local Seattle investors. The company grew rapidly and was sold in 1998 to Harris & Hoimes, as well as, Mellon Ventures and InterWest Partners (both $ billion plus equity funds). Mr. Allen remained, working with the new investors. Rapid growth continued which, by 2000, more than doubled the value of the company. The company was ultimately purchased by Ralston Purina’s food group.

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Wyman C. Harris

Jack Sutton

Telly C. Hoimes

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Michael T. Allen

Michael T. AllenMichael T. AllenMr. Allen’s backgroud includes extensive transactional and financial experience as it relates to food and manufacturing companies. He is a hands on financial executive with a strong background in cost and cost containment, and the administration of accounting and finance as they relate to significantly expanding businesses. Mr. Allen earned a BS in Finance and Accounting from Seattle Pacific University and is a Certified Management Accountant.

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Office LocationsOffice LocationsHHSA has offices in San Francisco and Seattle.

Harris, Hoimes, Sutton & Allen Inc.23F Main Street

Tiburon, CA 94920(415) 435-9055

Fax (415) 435-9057

Sutton 9603 183rd Avenune East

Sumner, WA 98390(253) 891-0641

Allen2845 NW 94th StreetSeattle, WA 98117

(206) 706-4174