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New York | March 2006

Praesidian Capital Finances BondCote Recap

Leading Provider Of Mezzanine Debt Invests In Niche Manufacturer Of Coated And Laminated Fabrics

Praesidian Capital, a leading provider of mezzanine capital to middle market companies, today announced the closing of a $6,000,000 debt investment in BondCote Corporation ("BondCote"), a premier manufacturer of highly engineered coated and laminated industrial fabrics. The financing aided Stonebridge Partners ("Stonebridge") in a $28,500,000 recapitalization of BondCote, which they have owned for 11 years.

BondCote provides coated and laminated fabrics to many of the leading prime fabricators and sub contractors of military tents, shelters, vehicle and cargo covers, and other products, while its specialty coated fabrics are sold directly to commercial and industrial manufacturers. The Company also provides a wide array of specialty fabrics that are employed in a diverse range of commercial and industrial end applications, including truck tarps, pool covers and athletic/recreational products. With qualified status within the government/military market, the Company is advantageously positioned to benefit from the growing demand for shelters and covers as well as dynamic, emerging homeland security and disaster relief markets with significant growth potential.

"BondCote's industry leading reputation— stemming from its manufacturing versatility, high quality standards and technical capabilities — make this an attractive business to invest in," said Ted Koch, Managing Partner at Praesidian. "We are excited to work with experienced co-investors in Stonebridge Partners and a talented management team led by Ted Anderson."

"With the support of Praesidian and the continued support of Stonebridge, BondCote has the financial stability and flexibility, as well as the operating experience and know-how, to grow to the next level, " said Michael S. Bruno, Jr., Managing Partner at Stonebridge. "The business plan is well-conceived, not to mention achievable."

Since the close of its debut fund in February of 2005 on $157 million, Praesidian Capital has established a strategy of partnering with strong co-investors and providing mezzanine capital to historically profitable middle market companies with talented management teams. The Firm has closed eight investments since its inception. Portfolio companies include Nutritional Laboratories International, Inc., a leading manufacturer of quality nutritional supplements owned by Red Diamond Capital and management; Life is good, Inc., a privately-owned branded apparel company; CAM Fabrication, Inc., a leading concrete forms and accessories distributor in the Southeast owned by JMH Capital and management; and BenefitPort MidAtlantic, the leading provider of technology-based solutions for the group insurance and employee benefits industry, which was purchased by management.

About Praesidian Capital
Praesidian provides mezzanine debt to middle market companies. The firm provides capital for established, historically profitable companies, as well as for management/leveraged buyouts, recapitalizations and refinancings. Investments are focused on successful businesses in the manufacturing, distribution and service sectors, although the firm's approach is not driven by an industry focus. For more information, visit www.praesidian.com

About BondCote Corporation
Founded in 1949 and Headquartered in Pulaski, Virginia, BondCote has evolved from a cut and sew manufacturer of plastic, waterproof fabrics into a leading provider of high performance coated and laminated fabrics. As the BondCote reputation for quality has spread within the industry, the Company has expanded its design services and technical capabilities. Today, BondCote provides coated and laminated fabrics and materials to two primary markets: Government/Military and Commercial/Industrial accounting for approximately 75% and 25%, respectively, of total revenue. For more information, visit www.bondcote.com

About Stonebridge partners
Stonebridge Partners is a premier private equity firm celebrating its 20th year of acquiring middle market companies in conjunction with existing management teams. Stonebridge has completed 22 core company acquisitions and 23 add-on acquisitions, investing over $500 million of capital in these transactions.

Stonebridge primarily focuses on value-added manufacturing companies, partnering with talented management teams and providing capital and operating expertise to enhance growth in sales and profitability. The Firm's realized internal rate of return ("IRR") on 16 transactions since 1989 has approximated 50%. For more information, visit www.stonebridgepartners.com

Media Contact: Dan Jacobs
Broadgate Consultants, LLC
Phone: 212 232 2227

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