Riverside Completes First Public-To-Private Transaction Acquisition of The Dwyer Group, Inc. is 11th Transaction of 2003

The company was founded in 1981 by Don Dwyer, who envisioned it as an opportunity to help others develop and realize their entrepreneurial dreams. The Dwyer Group has been a success because of its focus, nurturing environment in which it teaches franchisees to run their own businesses and unique corporate culture. In January 1999, Don?s daughter Dina took over as CEO of the Company.

In 1993, Dwyer went public. Now, with the approval of a majority of the outstanding shares of Dwyer's common stock, the Company has become privately held by Riverside and other stockholders, including members of the Dwyer family and Dwyer's senior management. Riverside paid $6.75 per share to Dwyer's public stockholders who were not participating in the management buyout, which represented a premium of approximately 59% oer the $4.25 closing price on May 9, 2003, the last trading day before the announcement of the transaction.

"We've been eyeing small public companies for some time as a possible source of attractive acquisitions," commented Stewart Kohl, Managing General Partner. "The rate of public-to-private transactions has been slower than we expected with just 70 in 2002 and 77 in each of 2001 and 2000, according to Mergerstat Review. But we do anticipate this number increasing significantly. And especially with the quality of The Dwyer Group, we couldn't be more pleased to contribute to 2003's tally and close what we hope will be the first of many take-private opportunities for Riverside."

"Dwyer has an industry leading management team that has been remarkably successful in developing a sound Franchise system in which the franchisees consistently grow their businesses year-over-year," explained Loren Schlachet, a Riverside Principal based in the firm's San Francisco office. "Over the next several years we expect that consumers will continue to place increasing emphasis on branding and a dependable, professional service offering by providers, and Dwyer is perfectly positioned to capitalize on this trend. We will continue to support Dwyer"s organic growth through investment in people, as well as consider acquisitions that are either complementary to the existing brands or that target home services."

Dwyer represents an attractive investment to Riverside for the following reasons:

It is a leader in the multi-concept franchise world. Dwyer is in the top 5% o franchisors as measured by the number of franchisees. Few have been as successful as Dwyer in managing multiple brands under one umbrella. In each of the sectors that its brands compete, they are one of the most recognized names and have significant market share relative to the competition.

Outstanding management team and corporate culture. The management team has an excellent reputation in the industry and has the creative focus and enthusiasm to build the core business.

Strong franchise system fundamentals. Franchisees are happy, revenue is growing system-wide and per franchise, and renewal rates are very good.

Solid growth in revenue and earnings. Dwyer"s product lines are not cyclical and much of the financial performance has come from existing franchisees who are successfully building their businesses.

"The Dwyer Group has always strived to align itself with winners, and this is no exception," said Dina Dwyer-Owens, President and CEO of The Dwyer Group. "Having the support of The Riverside Company is a huge affirmation of the strength of our brands within the Franchising and trade services industries. This not only complements the team that we have in place, but it also allows us to aggressively go after substantial growth in all areas of our business. Franchise owners will benefit by an accelerated rate of expansion of our brands, and we will continue to stay focused on providing them with the support they need to grow their businesses. The Dwyer Group's success is directly proportional to their success. An investment in The Dwyer Group is also an investment in our entire network."

The Riverside Company

The Riverside Company, with offices in New York, Cleveland, Dallas and San Francisco, is one of the leading private equity firms investing in premier companies at the smaller end of the middle market. The firm has more than half a billion dollars of capital under management and has earned its investors realized gains of more than five times their original cash investments on exited transactions. In addition to four pre-1995 acquisitions, Riverside has brought to market The Riverside Capital Appreciation Funds of 1995, 1998 and 2000, attracting investors from pension funds, endowments, funds-of-funds, insurance companies and banks. Since its inception in 1988, Riverside has invested in 76 acquisitions -- 36 platform companies and 40 add-on acquisitions -- across a variety of industries through its three funds and other investment vehicles. Riverside?s current portfolio numbers 26 companies.

The Dwyer Group, Inc.

The Dwyer Group, Inc., based in Waco, Texas, is a holding company that owns six franchise businesses. Each business sells and supports a different service-based brand name franchise under the following service marks: Aire Serv® Heating & Air Conditioning, Glass Doctor®, Mr. Appliance®, Mr. Electric®, Mr. Rooter® (Drain Doctor® in the UK), and Rainbow International® Restoration and Cleaning. Collectively, the franchisees of these franchise concepts offer customers a broad base of residential and commercial services.