EM Holding Corporation Establishes West Coast Operations -- Acquires Computer Cabinet Corporation.

Business Editors

AUSTIN, Texas--(BUSINESS WIRE)--Oct. 11, 2000

EM Holding Corporation has expanded its geographic reach with the acquisition of San Jose, Calif.-based Computer Cabinet Corporation, a leading provider of custom enclosures for the telecommunications and medical industries.

Combined with its North Carolina fabrication and assembly operations, C3 enables EMHC to provide complete design, fabrication, assembly, and integration services for customized enclosures and subassemblies to its targeted OEM customers on a nationwide basis. The acquisition of C3 represents EMHC's continued execution of a growth strategy in the outsourced electromechanical products and services industry. Dallas-based EMHC was formed by the Texas Growth Fund, along with co-investors Hunt Capital Growth Fund II, L.P., and Four Corners Capital Partners LLC. The Texas Growth Fund is a private equity firm in Austin, Texas, that is managed by TGF Management Corp.

Established in 1980, C3 is a precision sheet metal fabricator focused on design for manufacturing, prototyping and Just-In-Time operations, primarily servicing low- to mid-volume customers that require high valued-added solutions. The company is recognized for its world-class manufacturing processes, superior cosmetics, complex assembly manufacturing, and on-time delivery. The company's partnership with EMHC will allow it to capitalize on significant growth opportunities and provide additional capacity and services to its customers.

"The acquisition of C3 provides EMHC with one of the industry's leading manufacturing operations and a strong management group and workforce that will be an asset to the EMHC team going forward. We look to leverage the momentum of C3's current business and provide additional resources to serve its existing customers with an expanded suite of products, as well as take C3's world-class manufacturing operations to a global scale," cites J. Brent Humphries, partner at TGF Management Corp. and Chairman of the Board of EMHC.

"The combined operations of Computer Cabinet and Qualified Metal Fabricators enable EMHC to provide its customers with turnkey product solutions, from enclosure design and prototype to final integration, across multiple domestic operations. Additionally, EMHC's existing telecommunications expertise will be augmented by C3's engineering and manufacturing strength in the optical networking and medical equipment markets," adds Antonio J. DiGesualdo, principal at TGF Management Corp. and Director of EMHC.

Post transaction, Ronald L. Edgar and David B. McLaughlin, previously executives of C3, will become executives of EMHC and will operate in expanded capacities within the organization.

With over $575 million of capital under management, the Texas Growth Fund is one of the largest and most active private equity investors in the Southwest. Currently investing its third fund, TGF specializes in private equity investments that finance buy-and-build strategies, internal expansions, and buyouts of middle-market companies. Texas Growth Fund investments include such companies as Administaff Inc., Classic Communications Inc., The Lofland Company, Veridian Corporation and Consolidated Equipment Companies Inc. For more information on the Texas Growth Fund and its portfolio companies, visit its Web site at www.texasgrowthfund.com.