Spirit Foodservice Products, Inc.

January 25, 2006
Contact: Lauren B. Sinai

Prospect Partners Teams With Veteran Industry Executive Donald C. McCann to Acquire Leading Maker of Customized Foodservice Disposable Products

McCann to Lead Spirit Brands; Investment is Seventh Platform of Prospect Partners II, L.P.

CHICAGO, ILL.—January 25, 2006: Prospect Partners, LLC, along with veteran industry executive Donald C. McCann and management, are excited to announce the formation of Spirit Foodservice Products, Inc. to acquire Spirit Brands, Inc. of Andover, Massachusetts. Spirit Brands, best known for its custom Swizzle Sticks, is a leading manufacturer and marketer of specialty and customized disposable plastic serving products sold worldwide through foodservice and specialty advertising distributors, restaurant chains, casinos, nightclubs and bars.

Mr. McCann, who invested in Spirit and will run the company as President and Chief Executive Officer, has a long track record of growth at a number of foodservice packaging companies. He has most recently co-invested with Prospect Partners in a number of successful packaging companies. Before that, he was CEO and principal owner of ELM Packaging Corporation, a manufacturer of foam polystyrene packaging for foodservice and consumer markets that was sold in 1998. He also has served in executive positions at Mobil Packaging and Diamond International Corporation.

"I look forward to working with Spirit's talented management to aggressively grow the company through new product development and acquisitions," Mr. McCann says. He will be joined in daily business operations by Spirit's current team of Joseph R. Pierro, Vice President, Sales & Marketing; Robert J. Morissette, Vice President, Operations; and Peter M. Maki, Chief Financial Officer. Management will be significant shareholders in the new firm.

Spirit was founded in 1934 by Jay Sindler, the inventor of the Swizzle Stick. Over the past 70 years, Spirit has invented numerous plastic products for the foodservice industry, including Steak Markers and sword- and prism-shaped food picks. It is the market leader in the stirrers, picks and specialty straws industries. Spirit's products also include promotional cups, napkins and servingware.

"Spirit is a great example of a small niche leader with sizable growth opportunities," says William V. Glastris, Jr., a Principal at Prospect Partners. "We have had a long and successful 13-year history investing with Don McCann and have seen firsthand where he's capable of taking a business."

Mr. Pierro adds, "With our new partnership with Don and Prospect Partners, we are excited about the opportunity to implement the growth strategy we have envisioned for some time. Spirit offers foodservice operators a great value proposition. Our custom and semi-custom products are an inexpensive way to advertise but can deliver a significant impact on profitability and brand image."

In pursuing their growth objectives for Spirit, Mr. McCann and Prospect Partners will actively pursue add-on acquisitions of companies involved in complementary foodservice disposables.

Spirit's Board of Directors will include Mr. McCann, Mr. Glastris and Prospect Partners' Vice President David J. Choe.

Prospect Partners' previous investments with Mr. McCann as an independent equity sponsor include current platform Knight Packaging Group, Inc., Wrap Pack Products Corporation and ELM Packaging.

Spirit is the seventh platform company of Prospect Partners II, LP, the $165 million private equity fund that closed in June, 2004. The Fund's other platforms include Velvac Holdings, Inc., a leading provider of exterior mirror systems and other parts for trucks, RVs and specialty vehicles; Codel Holding Company, a fabricator, assembler, marketer and distributor of pre-hung steel and fiberglass entry door systems for residential homes; Pipp Mobile Storage Systems Holding Company, a manufacturer, designer and installer of movable shelving and storage systems; Kronos Foods, Inc., a leading Greek foods manufacturer; Industrial Hoist Services, LP, a leading national provider and lessor of hoists used in industrial applications; and Superior Tool Holding Company, a manufacturer and distributor of a complete range of professional and consumer pipe-working and specialty plumbing tools.

About Prospect Partners

Prospect Partners, LLC of Chicago, Illinois is a leading investor in unique lower-middle-market companies, managing two private equity funds totaling $270 million. Since its inception in 1998, Prospect Partners has focused on management-led leveraged acquisitions of small niche leaders with revenues typically between $10 and $30 million; the firm has invested in more than 45 leading companies within many niche consumer, commercial, specialty distribution and service markets throughout the United States.

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July 9, 2007
Prospect Partners Expands Plastic Disposable Foodservice Products Holding With Add-On of Foam Cup Manufacturer