New Page 3

KAPITAL HOLDINGS invests in leveraged buyouts, recapitalizations and growth capital transactions across a wide range of basic industry sectors. The firm looks for companies in which sound strategy and superior execution can enhance revenues and cash flow.

As a fundamental value investor, the firm seeks superior return on investment primarily through earnings growth, as opposed to multiple arbitrage or financial engineering. Kapital Holdings invests in a company when the firm believes it can have a direct, positive impact on the companies’ financial performance. Working in collaboration with management, Kapital Holdings uses its experience, intellectual capital, network and financial resources to enhance the value of the enterprise.

KAPITAL - Private Equity

Value added:	Expertise in:
	strategic planning operational improvements acquisition strategy, execution and integration planning capital markets
Partnership:	KAPITAL’s philosophy of partnering with management is based on:
	aligned incentives collaborative approach to key strategic decisions principles of trust and fairness
Experience:	KAPITAL’s investment professionals have extensive experience and proven success in private equity investing, as well as significant experience in operations, strategy consulting and investment banking. KAPITAL’s mix of experience and diverse background enable the firm to operate comfortably within a variety of industry sectors and transaction situations.
Execution:	KAPITAL is able to execute transactions efficiently and effectively due to the firms:
	streamlined decision process flexible transaction structures strong relationships with financing sources experience in complex transactions

Equity Investment Criteria

1) Real Estate:

KAPITAL HOLDINGS is interested in stable growth areas where demand for value product is present. Kapital will either inject investment capital necessary for master or co-development of projects and infrastructure to support leading brand services companies.

2) Company

KAPITAL HOLDINGS is interested primarily in acquiring businesses that it can help build through operating improvements and further acquisitions. In particular, the firm looks for: (a) companies with strong expansion opportunities, either internal or through acquisition; and (b) companies with a sound business foundation where a limited number of identifiable changes in operating practices or business strategy can substantially improve performance.

KAPITAL HOLDINGS primarily focuses on businesses which share the following characteristics:

Larger middle market companies within basic industry sectors.
Large, growing or specialized markets that are relatively immune to rapid technological obsolescence.
A strong business foundation which can serve as a platform for internal growth or acquisition.
A fragmented industry structure that facilitates growth both internally and through acquisitions.
Identifiable opportunities to add value through a limited number of operating improvements.

KAPITAL HOLDINGS has strong fundamental interest in the Real Estate, Basic Manufacturing and Industrial Production (including: organic and inorganic industries such as the industrial minerals sector).