News

Charterhouse Buys a Majority Stake of The Vermont Bread
Company

New York, NY, April 22, 2005

Charterhouse Group, a New York-based private equity firm that has been actively investing in businesses and backing entrepreneurs since 1973, announced that it has recently acquired a control position in The Vermont Bread Company. Founded in 1978 in a country barn in Brattleboro, VT, Vermont Bread today is a leading maker of premium natural, organic and better-for-you bread, muffins and other bakery items.

Vermont Bread's Founder, Lisa Lorimer, will continue to be a significant investor in, and a board member of, the Company. Ms. Lorimer will pass the CEO title to Charterhouse Group Entrepreneur John F. Foley, a senior executive with over twenty years of experience in the baked goods subsector. Ms. Lorimer commented, "I am very pleased to have Charterhouse Group, an experienced builder of middle-market companies and John Foley as partners going forward. It was important to find private equity investors who were committed to maintaining the values that make Vermont Bread such a special company in the eyes of its customers, suppliers and employees. It was also important for me to transition my role in order to take the Company into its next chapter. " Ms. Lorimer noted that she was introduced to Charterhouse through senior executives in the natural food and organic industry.

John F. Foley is a highly accomplished general manager who most recently served as a senior sales and marketing executive with Grupo Bimbo, Bimbo Bakeries USA, the world's second largest baking company. Previously, Mr. Foley had served as a General Manager with Bestfoods Baking/Unilever and as a Vice President with Kraft Foods.

The transaction is consistent with Charterhouse's strategy of sourcing proprietary investments through its entrepreneur and senior executive relationships. It is also representative of Charterhouse's strategy of making investments in consumer products businesses which are oriented towards healthy living and wellness.

Vermont Bread is the largest producer of natural and organic bread and muffins in the Northeast United States. The Company currently sells its products throughout the Northeast and Mid-Atlantic regions, including to national natural/organic markets, independent health food stores and within conventional mass and supermarket channels.

Joe Rhodes, Charterhouse Partner, said, "We are excited to be working with both Lisa Lorimer, a pioneer in the natural and organic bread industry, and John Foley. We look forward to continuing to build upon the Vermont Bread franchise with new retail accounts, new products and within new geographic arenas. We expect that the Company will grow both organically and through acquisitions." Mr. Rhodes noted that Paul Mullan, a Charterhouse Strategic Partner, has joined Vermont Bread as its Chairman. Mr. Mullan is an experienced food industry executive having served as the CEO of Del Monte Foods and as the CEO of Fleer, Inc., both former Charterhouse consumer products portfolio companies.

About Charterhouse Group
Charterhouse Group, Inc. is a private equity firm with three decades of experience in building leading middle-market companies. Established in 1973, Charterhouse currently manages in excess of $1.7 billion in equity through several limited partnerships. Since its inception, Charterhouse has completed investments in over 85 platform companies with a focus in the business services, healthcare services and consumer products sectors. For more information, please visit www.charterhousegroup.com.

Contacts:

Charterhouse Group:
David G. Hoffman, Partner - (212) 584-3234
Joe Rhodes, Partner - (212) 584-3227