Nogales Invests in Children's Apparel Retailer

Nogales Investors Fund II Will Expand Store Base and e-Commerce
Business for Naartjie Custom Kids, Inc.
LOS ANGELES--(Business Wire)--
Nogales Investors, a Los Angeles-based private equity firm, has
announced a $15 million equity investment in Naartjie Custom Kids,
Inc., a branded retailer for children's clothing. The investment will
enable the company to significantly expand their store base throughout
the United States as well as their e-commerce business.

Naartjie primarily focuses on designing, manufacturing and selling
high-quality children's clothing at competitive prices. The retailer
designs and introduces 11 new, fashion-forward collections each year,
ensuring their clothes are always kid-friendly. The Naartjie brand is
a successful synthesis of several design elements that make it
distinctive, inspirational and very popular.

Headquartered in Salt Lake City, Naartjie was founded nearly 20
years ago in Cape Town, South Africa, by designer Anne Eales. The
worldwide rights to the brand were purchased in 2001 and over the past
few years, the company has experienced significant growth. The
children's retailer now boasts 21 stores in the Western United States
and an additional 14 stores throughout South Africa.

The company is led by Joe Franceschi, CEO; Laura Diaz, Chief
Merchant; and Anne Eales, Chief Designer. Previously, Franceschi was
COO of Greenbacks, Inc., where he helped expand the company's retail
portfolio from 15 to 100 stores. Diaz brings years of experience as a
former merchant for the Gap and Mervyn's.

Luis Nogales, Managing Partner of Nogales Investors, said, "The
current conditions in the retail market have created an enormous
opportunity for Naartjie. Vacancy rates in high end shopping centers
have increased as more retailers downsize and face bankruptcies,
making it an opportune time for well-capitalized retailers like
Naartjie to expand."

Naartjie fits well with the business strategy of Nogales Investors
Fund II, which is designed to make investments ranging from $10
million to $40 million in high-growth middle market companies. The
company's highly differentiated and cost competitive merchandising
strategy along with its proven ability to open and operate profitable
locations in the United States made it an attractive investment
opportunity. The current management team also has substantial
experience in children's apparel and previous success in executing
store expansion strategies.

About Nogales Investors

Nogales Investors Management LLC is a private equity investment
firm based in Los Angeles that manages capital for some of the largest
institutional investors in the world. The goal of the company's funds
is to generate superior investment returns while at all times
maintaining the highest levels of fairness, integrity and
professionalism. The firm aims to complete transactions that meet the
needs and aspirations of all parties through a creative and flexible
investment approach which results in either a control or non-control
ownership position for the fund.

For Nogales Investors
Steve Sugerman or Emily Baines, 310-689-7537
emily@sugermangroup.com

Copyright Business Wire 2008