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The Peakstone Group’s Affiliate, PAG Capital, Announces Majority Equity Investment in Corporate Technology Solutions, LLC

September 2009.  PAG Capital Partners, LLC (“PAG”) announced it has made a majority equity investment in Corporate Technology Solutions, LLC (“CTS”), a privately-held company that designs and installs advanced structured cabling systems for voice, data, video and security networks in the healthcare, education, government and commercial sectors.  Brian Rhynas, President, and Scott Tubbs, Vice President, have retained meaningful ownership stakes in CTS.

Established in 1998 and headquartered in Tempe, Arizona, CTS has grown to become a leading provider of low-voltage structured cabling installation services in Arizona.  CTS achieved record performance in 2008 and has continued that success in 2009 by focusing on providing high-quality design and installation services to its customers and partnering with leading integrated cabling manufacturers and suppliers to deliver the best solutions to its customers.   For additional information about CTS, please visit the Company’s website at www.ctscabling.com.

In conjunction with the transaction, Wes Dearbaugh joined CTS as Chairman and Chief Executive Officer.   Mr. Dearbaugh, a PAG Operating Partner and formerly president and chief operating officer of several private and public companies, has over 30 years of experience leading and growing companies.  Brian Rhynas and Scott Tubbs will remain in their current roles.

Brian Rhynas, President of CTS, said, “We’re very excited about our partnership with PAG and the opportunity to have an executive of Wes Dearbaugh’s caliber join our team.  The addition of Wes as CEO together with PAG’s financial and operating support will enable CTS to capitalize on the many organic growth and acquisition opportunities that are available in our region.”

Stephen Sleigh, Partner at PAG, said, “Our investment in CTS is consistent with PAG’s objectives of identifying middle market companies with untapped potential and supporting them with additional management and financial resources.  Brian Rhynas and Scott Tubbs have built a strong company with significant growth opportunities ahead.  We are looking forward to working with them to continue CTS’ reputation of excellent customer service and best-in-class installation services and to expand its geographic footprint.”

PAG is a Chicago-based private equity firm specializing in private equity investments and recapitalizations of lower middle market companies in partnership with management.   We seek investment opportunities where we can utilize the strengths of our Operating Partners and investment professionals to grow and increase the profitability of our portfolio companies.  For additional information about PAG, please refer to the firm’s website at www.pagcapital.com.