Capstone Advises L-Com, Inc. on its Recapitalization with The Riverside Company

May 1, 2006

Boston, MA – Capstone Partners LLC, a leading national investment banking advisory firm, announced that it has successfully advised L-Com, Inc. on its recapitalization with The Riverside Company.  L-com, Inc. is a manufacturer and direct marketer of interconnect components such as copper and fiber-optic cable assemblies, adapters and terminators which are used in diverse applications such as video, audio, data, instrumentation, process control, and network connectivity solutions.  The Riverside Company is the largest private equity firm investing in premier middle market companies.  Capstone Partners LLC served as advisor to L-Com during the transaction. Terms of the deal were not disclosed. 

L-com has generated 27.2% CAGR growth from 2002 to 2005 through continued product development (it currently offers more than 6,000 SKUs) and top-tier customer service (including shipping over 90% of its orders the same day). The Company's growth is also attributable to its aggressive sales and marketing strategy involving the integration of catalog and Internet sales, an expanded sales force and outbound calling efforts.
 
"Partnering with L-com makes good business sense," stated Brooke Ablon, a partner at Riverside. "L-com has demonstrated an ability to grow faster than the overall market and gain market share thanks to its strong management team and highly responsive customer service. We expect to see additional growth through further customer penetration, a greater focus on sales and marketing, and an expansion of international sales - plus Riverside's typical strategy of acquiring complementary add-on acquisitions to boost sales and earnings. We're particularly seeking add-ons that provide additional product or geographic extensions."
 
"Our partnership with Riverside will vault L-com to even greater success," added Ed Caselden, L-com's CEO. "Riverside understands our goals and, together with its financing partners, will route the necessary capital for L-com to further grow the business."

Headquartered in North Andover, MA, L-com, Inc. designs, manufactures and distributes telecom and datacom interconnect components for a broad range of end-markets selling more than 6,000 SKUs to over 15,000 accounts within dozens of different end-markets. Through continued product innovation, brand recognition - 90% of its products are sold under the L-com brand name - and superior customer service, L-com has established itself as a solid presence in the cable connector industry. www.l-com.com.

The Riverside Company is the largest private equity firm focused on the middle market and is one of the industry's most experienced leveraged buyout investors. Riverside specializes in premier companies with enterprise values of less than $100 million, and partners with strong management teams to build companies through acquisitions and value-added growth.  Riverside maintains offices in 10 locations, including New York, Cleveland, Dallas, San Francisco, Atlanta, Chicago, Budapest, Munich, Prague and Warsaw. www.riversidecompany.com