Borealis Capital Corporation and Kilmer Capital Partners Have Acquired Vansco Electronics Ltd., a Leading North American Electronics Manufacturer for the Global Heavy Equipment Market.

TORONTO -- Kilmer Capital Fund L.P. and Borealis Private Equity Fund are pleased to announce the acquisition of Vansco Electronics, a leading North American designer and manufacturer of electronic components for heavy equipment used in the agriculture, construction, and bus and recreational vehicle markets. In carrying out this acquisition, Kilmer Capital and Borealis partnered with members of Vansco's senior management team.

Kilmer and Borealis are backing an experienced senior management team to execute a well defined and disciplined strategy to transform Vansco from a North American electronic controls supplier to a global operator with significant resources overseas. Niels Erik Hansen, Vansco's chief executive officer, said the new investors are value add partners with the financial capability and international expertise that will allow Vansco to grow from a company that generated $110 million in business last year to one that management wants to grow to between $400 million and $500 million in the next three to five years. Dr. Hansen has planned for a significant part of that growth to be achieved through one or two acquisitions in Europe within the next six to 24 months. "Over the past five years especially, an increasing percentage of our revenue is coming from companies like CNH and Bobcat, and they want us to supply them all around the world, not just in North America," Dr. Hansen said in an interview.

Commenting on the global expansion plan, Anthony Sigel, managing partner of KCP, said "The heavy equipment business is consolidating. There are fewer players and they are more global. That's what has helped create an opportunity for Vansco. It's like the clients are asking the suppliers to keep up."

Vansco is a Canadian success story. The Company was started in 1978 by Ed Van Humbeck and his wife Terry with a vision to become a leading electronics innovator for heavy equipment OEM's. Unlike many entrepreneurs, Mr. Van Humbeck had the foresight several years ago to professionalize management and position the Company for the next level of growth. Early in 2003, Mr. Van Humbeck hired Niels Erik Hansen as his successor. Prior to joining Vansco, Dr. Hansen was part of the executive team that merged Iowa-based Sauer Inc. with the Danish company Danfoss Fluid Power, creating the world's largest focused mobile hydraulics company. Mr. Van Humbeck will remain active as a shareholder and member of the Board of Directors, ensuring the Company will continue to benefit from his many years of experience and knowledge.

"We were impressed with Ed Van Humbeck who, as an owner-operator, implemented a very effective succession plan. Ed had the foresight to hire an external CEO and actually let him run the company", said Andre La Forge, senior vice-president of Borealis Private Equity.

Kilmer Capital Partners manages the Kilmer Capital Fund L.P., an institutional private equity group sponsored by Kilmer Van Nostrand Co. Limited, which is owned by Toronto businessman Larry Tanenbaum whose investments also include Maple Leaf Sports and Entertainment Ltd., the owner of the Toronto Maple Leafs, Toronto Raptors and the Air Canada Centre. Some of KCP's recent investments include Give & Go Prepared Foods, Canada's leading wholesale bakery manufacturer of thaw-and-serve products and York Uniforms, Canada's leading designer, manufacturer and manager of employee uniform programs for leading retail and food service companies.

Borealis Capital Corporation is one of Canada's leading independent managers of alternative assets. Borealis manages a C$375 million private equity fund (Borealis Private Equity Limited Partnership and Borealis (QLP) Private Equity Limited Partnership), on behalf of its LPs which include OMERS and the Canada Pension Plan (CPP). Borealis specializes in leveraged buyouts of successful growth companies in partnership with management. Some of their most recent investments include MAAX Inc., a leading North American manufacturer of bathroom products and accessories, spas and kitchen cabinets and Marshall Macklin Monaghan, one of Canada's premier engineering consulting firms.