News

Charterhouse Group Acquires Towne Holdings, a Leading
Provider of Deferred Air Freight Logistics Services

New York, NY, November 29, 2005

Charterhouse Group, Inc. ("Charterhouse") a New York-based private equity firm that has backed entrepreneurs and supported growing middle-market businesses since 1973, announced today that it has completed the acquisition of Towne Holdings, Inc. ("Towne" or the "Company"), a leading provider of asset-light logistics solutions and deferred air freight transportation services.

The transaction followed a focused effort on the part of Charterhouse's Business Services team to find a compelling platform in the specialty logistics sector. The acquisition of Towne is consistent with Charterhouse's strategy of utilizing its network of entrepreneurs and backing strong operating management teams in growing companies in defensible service segments. Tom Downey, Towne's CEO, along with his team of experienced managers, has achieved impressive success and will continue to drive the Company's profitable growth going forward.

Towne is a leading full-service provider of premium air cargo ground logistics transportation services. The Company operates three divisions: Towne Network Solutions ("TNS"); Towne Air Freight ("TAF"); and Rocket Expedited Services ("Rocket"). The Company's fastest growing division, TNS, provides comprehensive outsourced logistics management solutions for the surface cargo needs of international airlines and freight forwarders in the U.S. and Canadian markets. TAF, the Company's largest division, primarily handles airport to airport and "last mile" ground transportation of deferred air freight and air cargo. Rocket provides exclusive-use dedicated transportation equipment for customers with time-sensitive transportation needs. Towne was founded in 1963 and is based in South Bend, Indiana.

Jay Gates, a Partner at Charterhouse, said, "We are delighted to add Towne to the Charterhouse family. We are excited to find such an ideal combination of elements in a single logistics platform - a very strong management team, an excellent market position, and compelling industry sub-sector fundamentals. We are pleased to have the opportunity to partner with Tom Downey and his entire management team and look forward to supporting the Company's next chapter of growth." Tom Downey, CEO of Towne, stated, "Charterhouse differentiated itself from the beginning with its entrepreneur-oriented model. On behalf of the Towne team, we are very much looking forward to working with Charterhouse to rapidly bring our business to the next level. I am confident that we are better positioned than ever to work with our customers and transportation partners to continue to provide the best logistics solutions within the industry."

Charterhouse Entrepreneur Roger Gibson, who gained extensive experience in the air cargo logistics sector as a senior manager with United Airlines, assisted in the evaluation of Towne and will join its new Board of Directors.

Proskauer Rose LLP served as legal advisor to Charterhouse in connection with the transaction.

About Charterhouse Group
Charterhouse Group, Inc. is a private equity firm with over 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 90 platform companies with a focus in the Business Services, Healthcare Services and Consumer Products and Services sectors. For more information, please visit www.charterhousegroup.com.

Contacts:

Charterhouse Group, Inc.
David G. Hoffman, Partner - (212) 584-3234
Jay Gates, Partner - (212) 584-3223

Charterhouse Group, Inc.
535 Madison Avenue (at 54th St.)
28th Floor
New York, NY 10022-4299
T: (212) 584-3200
F: (212) 750-9704
www.charterhousegroup.com