Eldorado Stone Plans Major Expansion Following Acquisition by Private Investors (2/01)

Eldorado Stone LLC, a leading manufacturer of stone veneer used in commercial and residential construction projects announced a new partnership with Graham Partners, a private investment firm focused on acquiring industrial companies in manufacturing niches.

Recognizing the opportunities that exist in the siding materials market place, key members of Eldorado's existing management team and Graham Partners agreed to recapitalize Eldorado in order to bring forth the resources required to take advantage of this significantly growing market segment.

Michael Lewis, president and CEO of Eldorado, said, "We are very pleased to be teaming up with Graham because of the knowledge, contacts and resources they bring to Eldorado. This partnership ensures that Eldorado will not only continue to provide the highest quality products and personalized service our customers have learned to expect from us, but to expand our territories and look at new and exciting ways we can enhance services to Eldorado customers and distributors. The partnership provides us with access to financial and operating resources as well as industry contacts that will help Eldorado take advantage of the tremendous growth opportunities available to us," said Lewis.

Existing shareholders and the current management team of Eldorado Stone will maintain daily operational control of the company. "This partnership allows us to focus more clearly on our goals and to speed up the integration and consolidation process the company began six months ago when Eldorado Stone joined forces with two of its largest franchisees, Stonecraft Industries and Northwest Stone & Brick to create Eldorado Stone LLC -- a company dedicated to strengthening its core commitment to outstanding customer service through the creation of 'best practices' that are shared by all three entities," explained Lewis.

Joseph G. May, a managing principal at Graham Partners, stated, "Eldorado has proven itself to be a leader in one of the most dynamic, high growth niches in the building products industry. We look forward to supporting the Eldorado management team to exploit their superior product offering and strong customer relationships by expanding their business where demand for manufactured stone continues to increase."

Founded as Eldorado Stone Corporation in 1969, the Company is headquartered in San Marcos, California and is one of the world's leading manufacturers of stone veneer marketed under the Eldorado Stone® name. The Company currently offers 87 different stone profile types and hundreds of different color schemes. In addition to producing stone veneer, Eldorado is a franchisor with 27 franchisees worldwide. With a reputation for outstanding product quality and exceptional customer service, Eldorado has attained a leading market position in its industry. Eldorado currently operates manufacturing facilities in California, Colorado, Washington and Mexico.