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Merion Investment Partners to Introduce New Mezzanine Debt Fund:

Top business leaders and investors will get sneak peak TONIGHT

3/4/2004
MEDIA ADVISORY

WHAT:
Join 100 of the area’s top business leaders and investors as members of Merion Investment Partners introduce the firm’s new Mezzanine Debt Fund.

WHY:
The greater Philadelphia area is ripe with growth companies that are ready to make a difference in their respective industries. Bourgeoning with innovative products and services, these firms are in the market for financing to help them take their development to the next level, and many of these firms seek a specializing form of funding called Mezzanine debt. Mezzanine debt is best suited for revenue producing companies with financing needs that exceed their Banks ability or willingness to lend. Grab a front seat at the introduction of this new mezzanine fund.

WHO:
Merion Investment Partners, L.P. is a mezzanine capital fund investing mezzanine debt with equity features in companies that have strong growth potential, proven management teams, a strategic competitive advantage and/or are operating in sectors of the economy that are poised to exhibit growth.

The Fund is designed to invest between $2 million and $5 million of mezzanine capital in growth companies. The Partners have been actively involved in the mezzanine lending market since 1995.

WHEN:
TONIGHT- March 4, 2004, 5:30pm to 7:30pm

WHERE:
The Merion Cricket Club
325 Montgomery Avenue
Haverford, Pennsylvania

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Merion Investment Partners Makes First Investment

New Mezzanine Fund Invests in West Chester-based Keystone Helicopter

11/17/2003
FOR IMMEDIATE RELEASE

King of Prussia, PA – November 17, 2003 – Merion Investment Partners, L.P., a newly established $75 million mezzanine-level investment fund, announced today its first investment in Keystone Helicopter, one of the largest and oldest helicopter services companies in the United States. Keystone operates a large fleet of turbine helicopters primarily running medical aid mission across the US. It currently operates a technical services depot and completion center near Philadelphia, and is building new, even larger facilities near Chester Country Airport, Pennsylvania. The amount and terms of the investment were not disclosed.

Merion Investment Partners’ participation is part of a round of institutional investment, which also included Brown Brothers Harriman of New York and Spring Capital Partners of Baltimore, Md.

“Keystone Helicopter is our first investment and it is a perfect fit for our ‘traditional’ investment philosophy,” said William M. Means, Managing Partner of Merion Investment Partners. “Keystone Helicopter has everything we look for – a strong foothold in a specialty manufacturing niche market with a proven management team and strategic competitive advantage.”

Merion Investment Partners has attracted significant participation from key institutional investors, including Fleet Bank, Wachovia Bank, MBNA, Philadelphia Insurance Company, First Financial Bank, and the City of Philadelphia Pension Fund. The fund was established to provide non-control mezzanine capital with minimal equity dilution to successful middle market companies in the Mid-Atlantic region. Mezzanine financing is the “middle ground” of a company’s capital structure that is between senior debt and common equity. It is especially useful for growing companies that have reached the limits of their bank borrowing capacities. Properly structured mezzanine financing is regarded as equity by senior lenders, but minimizes equity dilution for the shareholders.

“We welcome Merion Investment Partners’ investment experience, managerial guidance, and capital resources as we continue to grow Keystone Helicopter internally as well as through follow-on acquisitions,” said Steve Townes, CEO of Keystone Helicopter and founder of parent organization Ranger Aerospace. “These very substantial investment companies collectively give us the financing firepower that we need to grow our company significantly. Quality is the key word here – these are quality partners invested in a company which has built its 50 year reputation on providing quality service.”

Mezzanine financing is the “middle ground” of a company’s capital structure that is between senior debt and common equity. It is especially useful for growing companies that have reached the limits of their bank borrowing capacities. Properly structured mezzanine financing is regarded as equity by senior lenders, but minimizes equity dilution for the shareholders.

EDITORS NOTE: Exact terms of this large private “mezzanine” investment will not be disclosed. Keystone Helicopter was acquired in January 2002, by a Philadelphia group of aviation investors led by Ranger Aerospace LLC. Institutional investors include Ranger Aerospace, Meridian Venture Partners, Argosy Investment Partners, and CD Ventures, in addition now to Brown Brothers Harriman, Spring Capital, and Merion Capital, all collectively invested in a holding company called Keystone Ranger Holdings, Inc.

About Keystone Helicopters Keystone Helicopter is one of the largest and oldest helicopter services companies in the United States. Founded in 1953, Keystone operates a large fleet of turbine helicopters in multiple locations across several eastern states, primarily in the air medical mission. The firm also operates a large technical services depot and completion center near Philadelphia, and is building new, even larger facilities near Chester Country Airport, Pennsylvania.

Keystone Helicopter is owned by Keystone Ranger Holdings, Inc., a Philadelphia-area private equity investment organization that specializes in aviation-related ventures. The venture consortium is led by Ranger Aerospace LLC, and includes Meridian Venture Partners, Argosy Investment Partners, CD Ventures, and other private investors.

Ranger Aerospace LLC, headquartered in suburban Philadelphia, is a privately held investment and management holding company with private equity institutions, venture capital companies, and management as shareholders. Ranger and its co-investors add value to acquired companies via seasoned veterans experienced in aviation services, aerospace programs, engineering, finance, corporate development, MIS, marketing & strategic planning, Total Quality Management, mergers & acquisitions, post-merger integration, and turnarounds. Ranger’s previous successful aviation ventures include Aircraft Service International Group (www.asig.com), one of the world’s largest airfield services companies.

For more information Click Here for Keystone Helicopter on the Web and Click Here for Ranger Aerospace on the Web.

About Merion Investment Partners, L.P.
Founded in 2003, Merion Investment Partners LP is a mezzanine capital fund licensed by the Small Business Administration (“SBA”) as a Small Business Investment Company (“SBIC”). Merion invests mezzanine debt with equity features in companies that have strong growth potential, proven management teams, a strategic competitive advantage and/or are operating in sectors of the economy that are poised to exhibit growth.

Collectively, the principals of Merion Investment Partners have decades of experience in venture capital, commercial banking, investment banking, operating management and entrepreneurship. The company is headquartered in The Merion Building in King of Prussia, PA. For more information Click Here for Merion in the Web.

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Former Mellon Bank Team Establishes Merion Investment Partners, L.P.

New $75 Million Mezzanine Fund Quickly Attracts Institutional Investors

10/13/2003
FOR IMMEDIATE RELEASE

King of Prussia, PA – October 10, 2003 A new mezzanine investment fund, run by the former management team of Mellon Bank’s Growth Finance group, announced that it has closed on $60 million, with an additional $15 million in capital commitments. The fund, called Merion Investment Partners, L.P expects a total of $100 million by the end of the year.

The continuity of bringing the entire Mellon Growth Finance team to the new entity has created immediate credibility within the investment community. Already, Merion Investment Partners has attracted significant participation from key institutional investors, including Fleet Bank, Wachovia Bank, MBNA, Philadelphia Insurance Company, First Financial Bank, and the City of Philadelphia Pension Fund.

The fund was established to provide non-control mezzanine capital with minimal equity dilution to successful middle market companies in the Mid-Atlantic region. Mezzanine financing is the “middle ground” of a company’s capital structure that is between senior debt and common equity. It is especially useful for growing companies that have reached the limits of their bank borrowing capacities. Properly structured mezzanine financing is regarded as equity by senior lenders, but minimizes equity dilution for the shareholders.

The partnership, headed by the former Mellon team, also includes Brian O’Neill, chairman and founder of the O’Neill Properties Group, who is providing the fund with administrative offices, infrastructure and additional access to financial relationships and deal flow. Bill Means will serve as the fund’s managing partner. The fund is located in The Merion Building in King of Prussia.

“We feel that this is an ideal time to create a fund of this type,” said Means. “Today’s market is poised for growth. Historically, this part of the economic cycle has proved to be the perfect window for establishing an investment fund. This is the period which enables dynamic wealth creation.”

During its successful six-year tenure with Mellon, the team achieved an internal rate of return (“IRR”) of over 30 percent. That is significantly higher than the industry targeted IRR, which is typically in the high teens to the low-20s. The management team has built a reputation for wisely and safely supporting regional entrepreneurs, including work with Crothall Services, NCO Group, and PSC Info Group.

The Small Business Administration has licensed the Fund as a Small Business Investment Company (SBIC). That designation means that for every dollar Merion raises from private investors, it receives two dollars from the SBA.

Investing Philosophy Merion Investment Partners employs an “old-money” investing philosophy, concentrating on high growth markets in transition. These include business services, specialty manufacturing, and health care services and products. The primary focus of the fund is growing firms in the Mid-Atlantic region with at least $10 million in revenue. The Fund provides subordinated debt of $2 – $5 million per investment for middle market companies. This fund will also occasionally provide equity co-investments in conjunction with a subordinated debt investment.

“While this is a new investment fund, the management team we have in place has a rich history of smart investments,” said Ed Rodgers, Principal, Merion Investment Partners. “Institutional investors have recognized this, and we have therefore been able to gain remarkable traction in a short period.”

The Fund provides all portfolio companies with local personal attention, a rarity in today’s consolidated banking world.

About Merion Investment Partners, L.P. Founded in 2003, Merion Investment Partners LP is a mezzanine capital fund licensed by the Small Business Administration (“SBA”) as a Small Business Investment Company (“SBIC”). Merion invests mezzanine debt with equity features in companies that have strong growth potential, proven management teams, a strategic competitive advantage and/or are operating in sectors of the economy that are poised to exhibit growth.

Collectively, the principals of Merion Investment Partners have decades of experience in venture capital, commercial banking, investment banking, operating management and entrepreneurship. The company is headquartered in The Merion Building in King of Prussia, PA. It can be reached on the Web at www.merionpartners.com