The Sterling Group Completes Sale Of Exopack


HOUSTON (October 17, 2005) – Private equity firm The Sterling Group, L.P. today announced that they have finalized the sale of Exopack Holding Corp. to Sun Capital Partners, Inc.

Exopack offers one of the broadest product offerings in the flexible packaging industry, supplying both industrial and consumer markets with a variety of paper and plastic packaging options. 2004 revenues were approximately $510 million. Exopack was purchased in 2001 from International Paper and held in The Sterling Group’s Fund I. The operating subsidiary, Exopack LLC, will continue under the leadership of President and CEO Stan Bikulege.

“Exopack exemplifies our investment philosophy – to partner with the management and employees, focus on strategic initiatives to grow the business and create value for all the shareholders. We salute all at Exopack and wish them well with Sun Capital,” said Billy Oehmig, a Principal of The Sterling Group.

The Exopack sale represents the second sale of a portfolio company in The Sterling Group’s first fund, Sterling Group Partners I, L.P. There are two remaining portfolio companies in the first fund, Propex Fabrics and North American Energy Partners. The Sterling Group is now making acquisitions of companies through its second fund, Sterling Group Partners II, L.P., which closed at $470 million in May 2005.

About The Sterling Group, L.P.
The Sterling Group is a private equity investment firm founded in 1982 that targets controlling interests in leveraged buyout investments in basic manufacturing, industrial services and distribution companies with enterprise values typically between $100 million and $500 million. Sterling partners with management teams to acquire companies where it has identified specific opportunities to grow and improve the business. Sterling has sponsored the buyouts of 30 portfolio companies and numerous add-on acquisitions for a total transaction value greater than $7 billion. For more information visit www.sterling-group.com.

For additional information:
The Sterling Group, L.P.
Kevin Garland
(713) 877-8257
kgarland@sterling-group.com