Mirus Capital AdvisorsMirus Capital Advisors

Photo Stencil Acquired by Kachi Partners

BOSTON, MA – May 2007 – Mirus Capital Advisors, a middle-market investment bank, has announced that it has advised Photo Stencil, a manufacturer of stencils and precision tooling used in the printed circuit board assembly process, in a leveraged buy-out transaction. The acquisition was sponsored by Kachi Partners, a private equity firm in Boulder, Colorado, and financed with debt from Fifth Third Bank in Denver.

“This transaction represents an important step in Photo Stencil’s long-term growth strategy, which will ultimately include the introduction of new products and services, and geographic expansion that will help us to better serve our customers worldwide,” said Bill Moerbe, President of Photo Stencil.

“Photo Stencil is an extremely well managed company with a highly scalable business model and cutting edge technology that we believe can grow organically as well as through strategic acquisitions,” added Eric Weissman, a managing director at Kachi Partners.

Based in Colorado Springs and with operations in Mexico and Malaysia, Photo Stencil’s extensive line of precision tooling includes electroformed, laser-cut, and chemically etched stencils, as well as screens and templates for the manufacturing, assembly, and inspection of PCBs. Significant and on-going R&D efforts have made the Company a technology leader in the market for over 20 years, and the Company holds six key patents.

“Mirus Capital Advisors did an excellent job in representing Photo Stencil in this process. The Mirus team presented us with several potential partners, and helped us to quietly negotiate a private transaction that provided a superior outcome for our principals, our employees, and our customers,” said Larry Heitz, CEO of Eagle Electronics and former CEO of Photo Stencil.

About Photo Stencil

Founded in 1979, Photo Stencil is a world-class manufacturer of PCB assembly and inspection tools. The Company differentiates itself with high performance products, consistent technology leadership, award winning quality, and best-in-class technical support for its customers. The company’s products serve multiple industries such as computers, hand-held devices, set-top boxes, medical devices, and telecommunications equipment. Photo Stencil is an ISO 9001:2000 certified manufacturing and design company employing over 100 people worldwide. For more information, visit www.photostencil.com.

About Kachi Partners

Kachi Partners is a private equity firm providing equity capital to leading middle-market companies, usually in connection with the acquisition of the company. Kachi invests west of the Mississippi River, with an emphasis on companies located in the Rocky Mountain Region. Kachi seeks to invest in profitable well-run companies with superior management teams. We seek out companies with a leadership position in stable niche markets or some competitive advantage in growth industries. For more information, visit www.kachipartners.com.

About Mirus Capital Advisors

Mirus Capital Advisors provides investment banking solutions to corporate clients in technology, business services, manufacturing, consumer products, health care, and the resort & hospitality industry. Since 1987, Mirus has provided corporate finance advisory services on engagements including mergers, acquisitions, divestitures, recapitalizations, and valuations. For additional information, visit www.merger.com.

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