Midland Walwyn Invests in Merchant Banking Partnership New Fund to Benefit Middle Market Clients.

TORONTO--(BUSINESS WIRE)--Sept. 23, 1996--MIDLAND WALWYN INC.(TSE,ME:MWI) Midland Walwyn Inc. today announced the creation of MWI & Partners, a Merchant Banking joint venture with a team of experienced professionals -- Geoff Browne, John Breen and Alan Wearing -- that will focus on investments in North American middle-market companies. It will be managed independently from Midland Walwyn.

MWI & Partners' pool of capital will provide equity and equity-like capital to established North-American-based, mid-sized companies operating in a wide range of sectors, with a focus on telecommunications, health care, manufacturing and consumer products. Its services will include leveraged and unleveraged management buyouts, growth equity, family succession and acquisition-driven or recapitalization transactions.

Browne, Breen and Wearing, the Managing Partners responsible for day-to-day operations, have worked together at senior level positions in the Merchant Banking business for over six years. They bring extensive experience in all aspects of structuring acquisitions and dispositions, in corporate finance and in providing strategic counsel to investee companies. Their well-established relationships with other merchant and investment bankers and the business communities of Canada and the United States will facilitate the deal flow through the new operation.

"There has not been a totally unrestricted, equity-focused merchant banking fund established in this market for some time," said Geoff Browne. "Our structure and operating philosophy enables MWI & Partners to put together the most innovative Merchant Banking transactions that maximize value to investee companies and their shareholders. We believe the entrepreneurial nature of our operation and its principals, who are first and foremost deal-makers, will be a strong competitive advantage."

MWI & Partners intends to seek other financial partners such as life insurers, pension funds, institutional investors, and private investors to augment the fund's capital base and diversify risk. As an independent Merchant Banking operation, the new joint venture company will fill an important gap in the marketplace for these other investors.

According to Robert Schultz, CEO of Midland Walwyn, "Our participation in the creation of MWI & Partners underscores our commitment to remain Canada's leading independent investment firm, providing full service to our customers. MWI doesn't just signify an affiliation with Midland Walwyn Inc.; it also reflects Merchant Bankers With Independence, Innovation and Integrity."

Schultz continued, "MWI & Partners is an excellent strategic fit for us in terms of the entrepreneurial spirit of its principals; the opportunity for cross-referrals of business for our investment banking, M&A and retail operations; and the fact that the firm can leverage Midland Walwyn's top-notch research capability."

Capitalizing on their long-term relationships in the industry, the company will work closely with other members of the Merchant Banking community in Canada and the United States to achieve portfolio diversification and encourage deal flow from other organizations.

MWI & Partners is also creating an Advisory Council of senior investment professionals and business leaders, to provide industry-specific and general economic counsel, and facilitate deal flow. The Council will be assembled over the next few months.

MWI & Partners will be located within Midland Walwyn's corporate headquarters in Toronto to maximize access to Midland Walwyn's highly rated research team and to enhance deal referrals from their investment banking and individual investor client base.

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CONTACT: Midland Walwyn Inc.

Peter Kahnert, 416/369-2560