Archway Acquisition of Supply Chain Management Division Finalized

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Tue Jul 7, 2009 10:32am EDT

Integration of Resolve division into Archway services portfolio positions
company as leading source for fulfillment and consumer promotions
ROGERS, Minn.--(Business Wire)--
Archway, the leader in marketing operations management and fulfillment services,
today announced that it has completed the acquisition of the supply chain
management division of Resolve Business Outsourcing Income Fund (TSX:RBO.UN).
The addition of the supply chain management division augments Archway`s suite of
business-to-business and business-to-consumer fulfillment and promotion services
and positions the company as a clear industry leader with an unmatched
geographic footprint, breadth of service offerings and expertise across numerous
client industry sectors. 

"Major brands are streamlining their marketing resources and looking for
partners they can count on to perform the work of multiple vendors," said Mike
Moroz, president of Archway. "More importantly, they need to be confident that
their partners are going to be in business tomorrow and next year. With this
acquisition, we`ve created a company with unsurpassed service capabilities and
expertise that through its size delivers the economies of scale that are
critical for serving our clients` needs and delivering results." 

According to Moroz, the economic downturn has been hard on smaller vendors who
have lost business due to vendor consolidation and even to large vendors who
have been focused on specific industry verticals that have been forced to make
major marketing cuts. In an environment where many vendors are under financial
pressure, marketers are looking for the stability and experience Archway can
offer its customers. 

In November 2008, Tailwind Capital Partners and Black Canyon Capital, together
with the Archway management team, purchased Archway with the intent of
strategically growing the company`s service offerings and geographic footprint
to create the most dynamic provider of marketing operations and fulfillment
services. 

"This acquisition will allow Archway to deliver all of the services the industry
is demanding in each of the key geographic areas where businesses and consumers
are located," said Clay Perfall, chief executive officer of Archway. "Archway`s
commitment, and that of the company`s investors, to investing in the company`s
capabilities and addressing expanding client needs - despite the economy - gives
Archway and its clients a significant advantage over the competition." 

As a result of the acquisition, Archway has nearly doubled in size to annual
revenues of approximately $200 million, and close to 1,500 employees and 3.5
million square feet of distribution space. The company now has 21 full-service
locations, manages two client-owned facilities and has multiple onsite account
management locations. 

About Archway:

Archway is the leader in marketing operations management, providing marketing
execution solutions and complementary business process outsourcing. These
solutions include fulfillment services, consumer promotions, rebates, print
management, facility management, business intelligence and decision support
tools. Each solution is designed to reduce marketing operations costs, improve
marketing execution processes, leverage emerging technologies and most
importantly help improve the brand experience at every touch point of their
clients` marketing campaigns. Following the acquisition of the supply chain
management division of Resolve on July 1, 2009, Archway has 1,500 employees and
3.5 million sq. ft. of distribution space in 13 major metropolitan areas in
North America. For more information visit www.archway.com. 

About Tailwind:

Tailwind Capital is a private equity firm investing in growth-oriented
middle-market companies in the healthcare, business services and
media/communications sectors. Tailwind partners with management teams to build
businesses through organic growth, strategic acquisition, and operational
improvement. The firm currently has over $1 billion under management. For more
information, visit www.tailwindcapital.com. 

About Black Canyon Capital:

Black Canyon Capital is a Los Angeles based private capital firm focused on
investing in control and non-control private equity and structured debt
securities. Black Canyon is partnered with Canyon Capital Advisors, one of the
largest multi-strategy asset managers in the United States. Since its inception
in September 2004, Black Canyon has completed more than $1 billion of equity and
debt investments. More information can be found at www.blackcanyoncapital.com. 



Archway
Megan Effertz, 763-488-6814
megan_effertz@archway.com
or
Risdall McKinney Public Relations
Rose McKinney, 651-286-6767
rose@risdall.com

Copyright Business Wire 2009

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