Texas Growth Fund Forms EM Holding Corporation; Closes Acquisition of Qualified Metal Fabricators.

Business Editors

AUSTIN, Texas--(BUSINESS WIRE)--Sept. 27, 2000

Qualified Metal Fabricators Inc. has been acquired by EM Holding Corporation, a Dallas-based company formed by the Texas Growth Fund to execute a growth strategy in the outsourced electromechanical products and services industry.

The Texas Growth Fund is managed by TGF Management Corp., based in Austin, Texas.

Based in Kernersville, N.C., QMF is a leading provider of precision fabricated metal parts and assembly and integration services for the telecommunications, medical and industrial markets. Founded in 1978, QMF has exhibited significant growth by focusing on providing complete turnkey services in its core customer markets. QMF will serve as EM Holding Corporation's platform facility in the southeastern United States. EMHC is currently pursuing expansion opportunities in northeastern and western United States, as well.

"This transaction represents a significant step in our pursuit of creating a leading provider of turnkey solutions to the electromechanical market. QMF's customer-centric approach to the industry forms a strong foundation that EMHC intends to build upon by providing access to additional capacity, management and capital," cites J. Brent Humphries, partner at TGF Management Corp. and Chairman of EMHC.

"The acquisition of QMF represents TGF's continued execution of a strategy in the outsourced electromechanical industry servicing leading OEMs in the telecommunications, medical and semiconductor equipment markets. Through world-class manufacturing facilities in strategic geographic regions, EMHC will offer its targeted customers a multi-site manufacturing alternative with complete, integrated product capabilities," adds Antonio J. DiGesualdo, also with TGF Management.

In addition to the Texas Growth Fund and the management of QMF, other investors in the transaction were Dallas-based Hunt Capital Growth Fund II L.P. and Four Corners Capital Partners LLC. Four Corners will maintain an active presence in the day-to-day activities of EMHC.

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. TGF specializes in private equity investments that finance buy-and-build strategies, internal expansions and buyouts of middle-market companies. For more information on the Fund's investment criteria and portfolio companies, visit its Web site at wwwtexasgrowthfund.com.