Sentinel completes recapitalization of Spinrite in partnership with management

NEW YORK, February 12, 2004 - Sentinel Capital Partners, a leading private equity firm that invests in promising, smaller middle market companies, is pleased to announce a recapitalization of Spinrite Inc. Headquartered in Listowel, Ontario, Spinrite is one of the leading manufacturers and marketers of craft yarn products in North America.

Established 52 years ago, 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, dyeing and finishing operation in North America and is recognized as a market leader in new product development.

"Spinrite is a market leader with an outstanding reputation in the needlecraft category. We are thrilled to be associated with Spinrite and its employees. With its extensive manufacturing capabilities and first rate management team, Spinrite is well positioned to capitalize on the projected growth in the category," said Eric Bommer, a Partner at Sentinel.

"Spinrite is a market leader with an outstanding reputation in the craft yarn category. We are pleased to partner with the Sentinel team in order to build our unique business," said Robert Hay, Chief Executive Officer of Spinrite. “Since the company was founded by my father over 52 years ago, we have developed a loyal consumer following. We are confident that by working together with Sentinel we will be able to further develop our business."

"Our partnership with Spinrite's management is consistent with our strategy of backing strong management teams in growing consumer-driven businesses," said David Lobel, Sentinel's founder and Managing Partner. “We look forward to working with Spinrite's management team to continue building upon Spinrite's history of success."

Scotia Bank provided senior debt for the recapitalization and Norwest Mezzanine Partners provided subordinated debt financing .