Sentinel completes IPO of Spinrite in a Cdn $202.9 million transaction



NEW YORK, February 8, 2005 - Sentinel Capital Partners, a leading private equity firm that invests in promising middle market companies, today announced the initial public offering of Spinrite, a Sentinel portfolio company that is a premier manufacturer and marketer of craft yarn products in North America. Sentinel acquired the business with management in January 2004.

"The successful outcome of this investment speaks volumes about the quality of Spinrite and its management team and employees. Spinrite is a leader in its market and has tremendous potential. We are thrilled to remain significant investors in a truly exceptional business," said Eric Bommer, a partner at Sentinel. Thomas Fitzpatrick, a Sentinel operating partner, added, "Since making our investment, numerous operational initiatives have been implemented to help Spinrite enhance its financial performance and capitalize on significant growth opportunities. Every step of the way, Spinrite's management and employees exceeded our expectations."

Dario Margve, President and Chief Executive Officer of Spinrite, said, "We believe that Spinrite is well positioned to continue its outstanding performance. Our relationship with Sentinel has helped us reach this tremendous milestone in Spinrite's history. I am proud to lead such a great business with such a dedicated and talented group of employees."

David Lobel, Managing Partner and founder of Sentinel, said, "We are very pleased with this result and fortunate to have backed such an outstanding management team. This is Sentinel's fifth realization in in the past 10 months and we are pleased to have been able to return capital to our investors.

The Cdn $202.9 million IPO was structured through a Canadian Income Fund. Sentinel will continue holding a minority stake in Spinrite. The enterprise value of the transaction was $301 million. Spinrite Income Fund is listed on the Toronto Stock Exchange and will trade under the symbol "SNF.UN". The offering was underwritten by a syndicate lead by Scotia Capital Inc. and CIBC World Markets Inc and including BMO Nesbitt Burns Inc., RBC Dominion Securities Inc. and TD Securities Inc.

Based in Listowel, Ontario and established in 1952, Spinrite is well known for its Bernat, Patons, Lily Sugar'n Cream, and Phentex brands which are sold through mass merchants, needlecraft and hobby stores, and independent specialty stores. Spinrite possesses the most modern and diversified craft yarn manufacturing operation in North America and is recognized as the needlecraft market leader in new product development.