News

The Camelot Schools, a Leading Provider of Behavioral Health and Alternative Education Completes a Series of add-on Acquisitions

New York, April 24, 2008

The Camelot Schools, ("Camelot" or the "Company"), a portfolio company of Charterhouse Group. Inc. ("Charterhouse") recently completely three-add on acquisitions to further solidify its position as a leading provider of services to youth and adolescents in both the behavioral health and alternative education markets.

In late 2007, Camelot acquired Tekoa, a Virginia-based residential group home business. The Company had previously identified the southwest Virginia market as ripe for expansion given its high demand, limited capacity and lack of competition. Camelot has already expanded beyond the initial acquisition into de novo development of group homes and therapeutic day schools in the surrounding areas.

In addition, the Company recently acquired two companies in Kansas, including Riverside Academy in Wichita and King's Achievement Center approximately 20 miles away in Goddard. Both businesses operate residential programs serving mainly teenagers who present with one or more behavioral impairments or are under State adjudication.

Camelot was able to source all three of these opportunities on a proprietary basis. Most importantly, the Company will be able to bring a new level of professional management, clinical programming and capital investment to each of these businesses to further address the need for its services in the marketplace.

The series of transactions is highly consistent with Charterhouse and Camelot's stated objective of expanding the scope and scale of the Company's platform through highly strategic and accretive add-on acquisitions. Taylor Cole, Partner at Charterhouse, said, "Building on its highly successful acquisition into the state of New Jersey early last year, Camelot has demonstrated once again its ability to source and close acquisitions that expand its reach into new states that are in high demand for its superior services. We're delighted to continue providing the financial support behind the Company's value-creating buildup activities.

Proskauer Rose LLP served as legal advisor to Camelot in connection with all three transactions.

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 $2.0 billion in equity through several limited partnerships. Since its inception, Charterhouse has completed investments in over 100 platform companies with a focus in the Business Services, Healthcare Services and Consumer Products and Services sectors.

For more information on Charterhouse, please visit www.charterhousegroup.com.

For more information on the Company, please visit www.thecamelotschools.com.

Contacts:
Charterhouse Group, Inc.
David G. Hoffman, Partner - (212) 584-3234
C. Taylor Cole, Partner - (212) 584-3212

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