Growing Family prepays debt in a $45 million recapitalization

NEW YORK, September 30, 1998 - Growing Family, Inc., a Sentinel Capital Partners portfolio company, today announced the closing of a $45 million leveraged recapitalization which enables the company to prepay its original acquisition debt. The recapitalization also resulted in a partial realization of Sentinel's investment in Growing Family. Sentinel and management structured and negotiated the transaction, and arranged the senior debt financing.

Located in St. Charles, Missouri, Growing Family is the parent company of FirstFoto , the leading provider of in-hospital baby portrait services in the U.S. and Canada. First Foto enjoys exclusive, multi year contracts with more than 2,750 hospitals in North America. Approximately 3.2 million babies are born annually in hospitals served by Growing Family. In addition, Growing Family has the most comprehensive and accurate demographic database of families with newborns in North America and can offer a powerful and captive distribution channel to leading consumer product/service companies seeking proprietary and timely access to new mothers.

Growing Family is currently executing a growth strategy, called "Helping New Moms," which capitalizes on the company's proprietary database, unique relationship with mothers of newborns, and ability to access these mothers on a timely basis. Growing Family already has secured significant contracts from leading consumer product companies wishing to reach Growing Family's customers. Growing Family was established in 1954 and has an established track record of consistent growth and profitability.