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NEWSPRING CAPITAL ANNOUNCES ITS INVESTMENT IN CLIMAX MANUFACTURING COMPANY

RADNOR, PA, June 17, 2008 – NewSpring Capital, of Radnor, PA and Short Hills, NJ, announced today its investment in Climax Manufacturing Company, a leading paperboard and packaging company based in upstate New York. NewSpring led the mezzanine portion of the financing with a $5 million investment through NewSpring Mezzanine, the dedicated mezzanine fund of the NewSpring fund family. Co-investors included DeltaPoint Capital Management, a Rochester-based manager of private equity capital, and Hamilton Lane, which invested funds from the New York State Common Retirement Fund.

Climax Manufacturing employs 262 full-time employees at its Paperboard and Packaging Divisions located, respectively, in West Carthage and Lowville, NY. Climax is a manufacturer and supplier of recycled paperboard and folding cartons.

“We are very pleased to add Climax Manufacturing to our portfolio of investments,” said Steven Hobman, General Partner of NewSpring Capital. "Climax maintains a leadership position as an eco-friendly supplier of gift box packaging and producer of highly specialized matboards for the graphic arts industry. This advantage, along with a strong management team, affords the Company tremendous growth opportunities. Our investment complements our other commitments to growing niche manufacturers. We are also especially pleased to invest alongside two strong equity sponsors – DeltaPoint Capital and Hamilton Lane.”

“This transaction allows Climax to more aggressively expand its sales channels and production capacity to capitalize on our strategic growth plan,” said Patrick Purdy, Chief Executive Officer of Climax. "The transition will appear seamless to our customers, suppliers and employees."

“Climax Manufacturing Company had been a family-owned and operated company for over 100 years, with a proud legacy of entrepreneurship, endurance and success. As a third-generation owner, I am excited to be part of the future growth and expansion of the business with DeltaPoint Capital, Hamilton Lane and NewSpring Capital,” said Liz Hirschey, President of Climax Manufacturing Company. For more company information, visit www.climaxpkg.com.