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August 2, 2006
CHS Announces Infrastructure Investment Initiative

Code Hennessy & Simmons LLC (“CHS”) announced today that it intends to increase its focus on investment opportunities in companies that manufacture or distribute products with applications in infrastructure-related industries and companies that provide business services to customers in these industries. Infrastructure end-use markets currently served by CHS portfolio investments include: highway and bridge construction and demolition; residential construction site development and preparation; remediation and facilities management; and water and solid waste impoundment and containment.

This origination initiative results from the firm’s focused research on the infrastructure sector. CHS’ analysis of non-residential construction spending suggests strong demand for infrastructure-related products and services for the next several years. In the private sector, a cyclical upturn is fueling growth in construction spending. Historically, cyclical upturns have resulted in 5-7% growth annually for a period of eight to nine years. In the public sector, the need to upgrade the nation’s aging infrastructure, coupled with the recently-passed $286 billion highway bill (“SAFETEA-LU”), are providing strong, consistent growth.

The firm’s portfolio of infrastructure-related investments validates CHS’ track record as a valuable partner to management teams looking to grow their infrastructure-related companies. Current infrastructure-related investments include:

American Asphalt & Grading Company
Leading provider of integrated construction services to the Southern Nevada residential home building market

American Reprographics Company
Leading reprographics company in the United States providing business-to-business document management services to the architectural, engineering and construction industries

Gundle/SLT Environmental
Leading designer and manufacturer of geosynthetic lining solutions used in the containment and management of solids, liquids and gasses

LVI Services Inc.
Nation’s largest and fastest growing remediation and facilities management firm

Penhall International Corp.
Largest U.S. provider of concrete cutting, breaking and excavation and highway grinding services, with the first or second market position in the majority of its served markets

With the firm’s increased focus on investments serving infrastructure end-markets, CHS formed an Infrastructure Advisory Board and is pleased to announce its initial members: Samir Badawi, President and CEO of Gundle/SLT Environmental, Inc.; Richard Goodrich, former Chief Financial Officer of Chicago Bridge and Iron Company N.V. and Director of Gundle/SLT Environmental, Inc.; John Sawyer, President and CEO of Penhall International Corp.; and Steve Brown, Dan Hennessy and Brian Simmons, Partners of CHS.

CHS is a Chicago-based private equity firm specializing in private equity investments and recapitalizations of middle market companies in partnership with management. The firm targets opportunities to make majority equity investments in companies valued at $100 million to $500 million. CHS has formed five private equity funds and currently manages over $2.5 billion of capital. To contact CHS regarding this initiative, please e-mail CHS at