JEB And SilkRoad Resources Acquire Laidlaw Corp., Provide Leadership and Improve Production -- Plans to Shift Manufacturing to China Expected to Boost Margins.

PORTLAND, Ore. & SCOTTSDALE, Ariz. -- JEB, Inc., an industrial holding company, and SilkRoad Resources (SilkRoad), an operationally oriented holding company focused on outsourcing opportunities to China, today announced the acquisition of Laidlaw Corp. (www.laidlawcorp.com).

Founded in 1917, Laidlaw is North America's largest manufacturer and distributor of wire hangers and other products to U.S. dry cleaning and commercial uniform industries. JEB and SilkRoad worked together to purchase employee-owned Laidlaw from the company's trustees. Lincoln International advised the acquiring companies on the transaction, Wells Fargo Business Credit provided the senior debt credit facility, and JEB sponsored the transaction through an investment of common stock and subordinated debt.

"Suppliers to service industries like dry cleaning are constantly under pressure to manufacture and deliver high quality products while lowering the cost of goods sold," said Erik Krieger, chairman of JEB, Inc. "With additional management leadership from SilkRoad and improved logistical and supply chain operations in China, Laidlaw will be uniquely positioned to provide increasingly competitive service and products to customers who already know and trust Laidlaw as a quality supplier."

"The strength of Laidlaw's brand name and reputation for higher quality has allowed the company to remain competitive despite import pressure," said Robert Giles, managing partner of SilkRoad. "We plan to take immediate steps to further improve pricing and strengthen our customer base."

In the past year, Laidlaw sold more than one billion hangers in North America and presently manufactures more than 100 different commercial hanger products. The company employs approximately 150 people at two domestic production facilities. Additional production and distribution will come from its China operations.

"As the leading supplier of hangers in the U.S. and Canada, we know our customers value a just-in-time supply," said Laidlaw CEO Tom Schultz. "Laidlaw has the benefit of domestic manufacturing, which allows us to meet customer demands quickly and efficiently in addition to international sourcing to lower costs."

As part of the outsourcing strategy, SilkRoad will add other dry cleaning-related products to expand its relationships with distributors in the U.S. With the infusion of capital from JEB, Inc. and SilkRoad, Laidlaw has a strong balance sheet and the financial resources to build on its reputation as a world class manufacturer and distributor of dry cleaning products.

About SilkRoad Resources:

SilkRoad Resources, an operationally oriented private equity firm, acquires lower middle market manufacturers that are a leader in their niche market but have been negatively impacted by low cost Asian imports. SilkRoad is especially interested in companies that have strong brands and product designs but whose financial performance has been impacted in recent years resulting in flat or slightly declining financial performance.

SilkRoad's core strategy is to generate substantial cost savings by shifting certain key products or entire manufacturing operations to China. Once a successful outsourcing program is implemented, SilkRoad then shifts its focus to identifying additional related products to deliver through a revitalized distribution network.

About JEB, Inc.:

JEB, Inc. is a holding company focused primarily on traditional economy manufacturing, distribution, and service businesses primarily located in the Western and Midwestern United States. Led by its experienced operating executives, JEB is well positioned to add significant value to its portfolio companies. Prior investments include CLEANPAK, International, a designer and manufacturer of ultra high purity air handling equipment sold primarily for cleanroom applications, which was sold in 2005.

About Lincoln International:

Lincoln International specializes in merger and acquisition services and private capital raising for leading organizations involved in mid-market transactions. With offices in Chicago, Frankfurt, New York and Paris, and strategic partnerships with China Everbright and other partner firms in Asia, Lincoln International has strong local knowledge and contacts in the key global economies. The organization provides clients with senior-level attention, in-depth industry expertise, and integrated resources. By being focused and independent, Lincoln International serves its clients without conflicts of interest. More information about Lincoln International can be obtained at www.lincolninternational.com.