Stonebridge Announces Major New Investment Partnership

Stonebridge partners with William E. Simon & Sons Private Equity to accelerate regional growth and expand nationally

DALLAS, Texas, June 3, 1998 – Stonebridge Technologies, Inc., a leading regional solutions integrator, today announced that William E. Simon & Sons Private Equity, along with co-investor Mellon Ventures, Inc., have sponsored a $75 million leveraged recapitalization of the company.

Stonebridge, with revenues in excess of $100 million, employs more than 200 people, and will become the platform company in the first of a series of transactions to build a national provider of solution integration services. "This is an exciting day for the company," said James Ivy, Stonebridge president. "The new partnership will allow Stonebridge to better leverage our core offerings into major U. S. markets, while strengthening our customer offerings and providing expanded career paths for our employees. The entrepreneurial nature of our employee structure is well-complemented by the Simon team's proactive investment approach."

Ivy said the company name would remain the same, and no changes in management or employee status would occur due to the partnership.

J. Peter Simon, executive director of William E. Simon & Sons, commented, "Our mission is to assist strong and well-positioned market leaders to achieve growth through consolidation and internal development. Stonebridge's major regional presence is a direct result of its strong management team, a portfolio of high quality customer partnerships and a solutions orientation, all of which will provide the necessary leadership and infrastructure to accommodate continued rapid growth."

Former U. S. Secretary of the Treasury, William E. Simon, and his sons William E. Simon, Jr. and J. Peter Simon, founded William E. Simon & Sons in 1988. The firm's core activities include later stage venture capital investments, capital markets activities and real estate investments.