Graham Partners Completes Recapitalization of Infiltrator

Graham Partners is pleased to announce that it was able to return over 98% of the original equity invested in its Infiltrator Systems platform as part of a $215 million recapitalization transaction. Graham Partners II acquired Infiltrator just over a year ago in September 2005. Infiltrator is a leading manufacturer of plastic chambers for onsite wastewater management systems in the septic leachfield and stormwater markets. The Company has experienced strong demand for its products as the market converts from traditional gravel-and-pipe leachfield systems to the plastic chamber systems Infiltrator manufactures, almost doubling its EBITDA in just over a year.

Rob Newbold, Managing Principal of Graham Partners, states: “We are pleased to be able to return virtually all of our equity from Infiltrator in such a short time span after our initial investment. Infiltrator has been a testament to Graham Partners’ strategy of acquiring companies with leading positions in high growth niches that are the beneficiaries of conversion trends in their respective industries. Additionally, the Company has done a fantastic job of managing its cost structure in an unprecedented raw materials pricing environment.”

Although the terms of the transaction have not been disclosed, the new bank group includes first lien providers, Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services Inc., GE Antares, and National City Bank. Second lien providers include American Capital Strategies and Deerfield Capital.

About Infiltrator: Infiltrator Systems, Inc. is a leading manufacturer of plastic chambers for onsite wastewater management systems in the septic leachfield and stormwater markets. Infiltrator’s primary products are large, plastic, arch-shaped chambers that are joined together in excavated trenches or beds to provide the means for septic tank effluent to leach into the soil and stormwater runoff to be contained. The Company is headquartered in Old Saybrook, Connecticut, and has two manufacturing facilities in Winchester, Kentucky and Ogden, Utah. Infiltrator supplies septic installers through a network of greater than 580 distributors who collectively operate out of roughly 1,000 locations throughout North America.

About Graham Partners: Graham Partners is a leading, lower middle market industrial private equity firm based in suburban Philadelphia with over $850 million under management. Graham Partners is sponsored by the privately held Graham Group of York, Pennsylvania, an industrial and investment concern with global interests in plastics, packaging, machinery, building products and outsource manufacturing. Graham Partners seeks to acquire industrial companies with revenues between $20 million and $350 million that participate in manufacturing niches where it can leverage its unique combination of operating resources and financial expertise.

FOR FURTHER INFORMATION CONTACT:

Rob Newbold (rnewbold@grahampartners.net)
Josh Wilson (jwilson@grahampartners.net)
Christina Morin (cmorin@grahampartners.net)
Tel: (610) 408-0500 / Fax: (610) 408-0600
www.grahampartners.net