Sentinel completes recapitalization of Strategic Partners in management buyout


Medical Uniform Industry Well Positioned to Benefit from Favorable Growth Outlook for Medical Personnel


NEW YORK, April 7, 2006 - Sentinel Capital Partners, a private equity firm that invests in promising, smaller middle market companies, announced today the recapitalization of Strategic Partners, Inc., a leading designer, manufacturer, and distributor of medical uniforms and girls' school uniforms for the specialty retail and mass merchant channels, in partnership with management.

Headquartered in Chatsworth, California, Strategic sells its products to independent and chain retailers of uniforms, mass merchants, and through catalogs and the Internet. Strategic's brands include Baby Phat, Cherokee, H.Q., Med•Man, Rockers, Classroom, Cherokee Workwear, Cherokee Studio, Team Scrubs, and Tooniforms. With over 50 license agreements, Strategic is one of the industry's largest licensors. Strategic also supplies hospitality uniforms to hotels, casinos, and restaurants, through its House of Uniforms division.

"This is a prototypical Sentinel transaction—a growing consumer business with a leadership position in our size range where the founding management is our partner" said David Lobel, founder and managing partner of Sentinel. "We are very pleased to be partners with Strategic's outstanding management and look forward to supporting their growth vision for the business."

"We are excited about our new partnership with Sentinel," said Mike Singer, CEO of Strategic. "The management and employees of Strategic are dedicated to continuing to provide our customers with the highest level of product quality and customer service."

"Industry forecasts indicate the healthcare industry is expected to continue growing and that demand for medical uniforms will move in lock step," said John McCormack, co-founder and senior partner at Sentinel. "Cherokee® is a premium industry brand and is noted for superior quality and design innovation. We look forward to working with this excellent management team to continue developing the business."