Sentinel reacquires Spinrite in take-private transaction

Signals Long-Term Commitment as Investor

NEW YORK, November 19, 2007 - Sentinel Capital Partners, a private equity firm that invests in promising, smaller middle-market companies, today announced the acquisition of Spinrite Income Fund, one of North America's leading manufacturers of consumer craft yarn. In January 2004, Sentinel and management acquired Spinrite from its founding family. It became a publicly traded income fund in February 2005 with Sentinel retaining a minority interest. On November 16th, Sentinel reacquired Spinrite in a take-private transaction for cash consideration equal to $2.25 per unit.

"We are a long-term investor in Spinrite and we continue to believe in the future of the company," said Eric Bommer, partner at Sentinel. "We believe our knowledge of the business, the strength of the management team, the dedication of its employees, and the advantages of private structure are the key ingredients for a stronger and more valuable enterprise."

Spinrite, located in Listowel, Ontario, is the largest producer and marketer of craft yarn in Canada and one of the largest in the United States. Established in 1952, Spinrite is well known for its Bernat, Patons, Lily Sugar'n Cream, and Phentex brands, which are sold through mass merchants, craft stores, and independent specialty stores. Spinrite possesses the most diversified craft yarn manufacturing operation in North America and is recognized as the market leader in new product development.

The acquisition of Spinrite marks Sentinel's fourth new investment during the past two and a half months. David Lobel, founder and managing partner at Sentinel, said, "Each of these acquisitions conforms to our investment strategy and we have accomplished this during a highly tumultuous credit market environment. We believe this reflects our proven experience in choppy markets and our ability to provide certainty to sellers."

To date in 2007, Sentinel has closed six new investments. In addition to Spinrite, these investments include Midwest Wholesale Hardware, a wholesaler of architecturally specified commercial door hardware; Trussbilt, an 80 year-old manufacturer of steel security products for the detention and corrections market; Inscape Publishing, a leading provider of corporate training solutions for employee assessment and development; Vintage Parts, the leading independent distributor of slow moving and inactive OEM replacement parts; and ReachOut Healthcare America, the nation's leading provider of mobile dental services.

For Sentinel, 2007 has also been a productive year for realizations. To date, Sentinel has sold three portfolio businesses, including Fasloc, the leading manufacturer of resin cartridges for use in underground mine roof support in North America; Metro Dentalcare, a multi-specialty dental group; and Nivel Holdings LLC, North America's largest independent, value-added distributor of golf car aftermarket replacement parts and accessories.