The Deal: In February, we successfully completed the sale of Amerifit Brands, Inc. to Martek Biosciences Corporation (NASDAQ:MATK) in a transaction valued at $200 million. The transaction followed a period of significant growth for Amerifit, driven by numerous initiatives undertaken by Charterhouse to build and strengthen the Company's portfolio of premier health and wellness brands. Today, Amerifit holds strong market positions in the Women's Health category with the following key brands: CulturelleŽ, a leading probiotic supplement; AZOŽ, the leading OTC brand addressing symptom relief, detection and prevention of urinary tract infections; and ESTROVENŽ, the leading all-natural nutritional supplement brand addressing the symptoms of menopause. Amerifit's products are sold in most major mass, club, drug, grocery and specialty stores.

Our original investment, which was made in 2005, was the result of a targeted search overseen by Charterhouse Entrepreneur Paul Mullan (who served as Chairman). Under Charterhouse's ownership, the Company significantly grew its revenue base and more than doubled EBITDA through two add-on acquisitions, new product introductions and organic growth achieved through numerous product extensions.

The Deal: In October, Minneapolis-based Freightmasters, joined Towne Air's nationwide network of transportation providers. The two companies had been working together for some time and Freightmasters made the decision to become a part of the Towne organization in order to better serve its regional customer base. This new business expanded Towne's geographic reach in the upper Midwest and also added an exciting new customer service vertical in the pool distribution business. Pooling involves providing value-added handling and distribution of high-frequency, time-sensitive merchandise in a specific geographic region and this offering helps cement Towne's integral role in customers' time-critical supply chains.

Today, Towne is one of the nation's leading premium air cargo ground logistics solutions companies. Towne provides a wide range of freight services through a national network of 61 service terminals throughout the United States, including nine new terminals added in the southern market as a result of the Texas Land and Air acquisition (consummated in October 2009). The Freightmasters business fits very well with Towne's build-up strategy and the deal was sourced on a proprietary basis by Towne's senior management; the add-on represents Towne's fourth successful acquisition under our ownership. Charterhouse plans to further expand upon the Company's geographic footprint and service offerings over the course of 2010 taking advantage of the current dislocation in the transportation sector.

Progress Update: Charter Baking, the leading North American marketer, manufacturer and distributor of natural and organic breads and other baked goods, recently had some major breakthroughs. These include: the successful introduction of a superior tasting Rudi's Gluten Free line of bread products; the launch of a new look and branding campaign for the core Rudi's Organic Bakery brand; and, entry into Costco and other thought-leader retailers with the Rudi's brand.

Update: We are pleased to report that the eight companies in Charterhouse Equity Partners IV (CEP IV) today are each valued above cost as of 3/31/10. The three CEP IV companies that we have sold returned an average 2.5x invested capital (and all were sold at a profit).

We are in advanced stages at the present time with two new deals. We have recently signed letters of intent for new platforms in outsourced services - in fragmented sub-sectors where we have significant experience and/or knowledge as well as a couple of teams of very strong Charterhouse Entrepreneurs.