PRESS RELEASE

Point Lookout Capital Partners Acquires Combined Systems; The Carlyle Group Provides Mezzanine Financing

Mon, 09 May 2005
2005-25pc

Point Lookout Capital Partners Acquires Combined Systems; The Carlyle Group Provides Mezzanine Financing

New York, NY - Point Lookout Capital Partners, L.P., a New York City based private equity firm that invests in middle market businesses, announced today that on April 14, 2005 it acquired a majority interest in Combined Systems, Inc. (CSI). CSI, under the brand name Combined Tactical Systems, develops and manufactures "less-lethal" munitions for the defense and law enforcement industries. Financial terms were not disclosed.

Carlyle Mezzanine Partners, L.P., part of The Carlyle Group, provided the debt financing for the transaction and made a minority equity investment in CSI. "With our expertise in the defense industry, we are excited about this investment and look forward to pursuing acquisitions alongside Point Lookout to grow CSI’s business," said Leo Helmers, Managing Director of Carlyle Mezzanine Partners.

Headquartered in Plainview, New York, CSI develops, manufactures and sells its products to the U.S. armed forces and other federal agencies, state and local police departments, and foreign military and police agencies around the world. The CSI management team will continue to operate the company and build on its record of growing success. According to Michael Monteleone, Managing Partner of Point Lookout, "We see great opportunities to grow this business platform through acquisitions and other strategic growth initiatives."

About Point Lookout Capital Partners, L.P.

Point Lookout Capital Partners, L.P. is an investment firm focused on leveraged buyouts and growth investments in middle market companies. Point Lookout is actively pursuing acquisition candidates to accelerate CSI’s growth in the defense and law enforcement industries.

About CSI

Founded in 1981, Combined Systems, Inc. is a leading manufacturer of high quality branded law enforcement equipment ranging from less-lethal munitions to anti-riot products that serve the law enforcement and military markets in the United States and abroad. CSI also manufactures highly engineered fuse and missile components for customers in the defense industry including the United States government and foreign governments worldwide. Currently, CSI has over 130 employees operating at its facilities in Jamestown, Pennsylvania and Plainview, New York. Visit www.less-lethal.com for additional information.

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