Transaction combines buyout and technology skills to capitalize on market opportunity

February 11, 2002

Generation Partners, a $325 million private investment firm, today announced the acquisition of GE Capital IT Solution's Disaster Recovery Services (DRS) unit. The business is a leading provider of end-user disaster recovery solutions, both directly and through channel partners, to more than 1,000 customers. The financial terms of the transaction were not disclosed.

"We were attracted by DRS's high revenue visibility, strong cash flow, excellent customer service record, and our belief in the long-term growth prospects of the disaster recovery sector," said Mark Jennings, Managing General Partner at Generation Partners. "While Disaster Recovery has always been a critical business function, in recent months many companies have placed an even higher priority on the need to develop capabilities to respond quickly to events that can interrupt vital operations and computer access."

Most current disaster recovery solutions focus on backing up key data, without taking into account the likely scenario that a disaster will leave employees unable to access their computers. DRS solves this end-user recovery problem by delivering a pre-determined configuration of computers, servers and other hardware to a designated recovery site within 12-48 hours of a disaster declaration. The company has achieved a 100% recovery success rate, including such high profile events as Hurricane Floyd in September of 1999, and most recently the September 11th tragedy in New York.

"We are extremely excited about working with a partner who shares our vision as to the future of our company," commented Stanley Krupp of GE Disaster Recovery Services, "Our goals are the same: to continue providing the same high level of service to our customers and to invest in and grow the business. Generation Partners' strategic guidance will ensure continued smooth operations and will help us to achieve our long range goals."

The deal is illustrative of the buyout component of Generation Partners' unique investment strategy. By utilizing the strong buyout skills and technology understanding of its principals that has always formed the core of its differentiation in the investing marketplace, the firm continues to build a strong diversified portfolio of investments.

s"Recently, there has been an increase in the number of large corporations looking to spin off non-core assets," commented Rob Pflieger, Partner at Generation Partners. "When the division in question is a small to medium-sized technology-focused asset, then that is precisely the type of business that we have expertise in acquiring, managing and developing. As a result, this company was in our 'sweet spot.' This enabled us to move quickly and help GE realize its business objectives. It is truly a win-win situation."

"We decided to divest the business because it did not fit our overall strategic plan," said Tony Greene of GE Capital IT Solutions. "We selected Generation because they are one of the few firms that have a solid reputation for completing buyouts that also have a keen understanding of technology. We had confidence they would close the deal on time and would be the best owner to take care of the employees and help this business grow to the next level. GE continues to believe in the business and we are excited to participate in the upside of the company through our ongoing equity ownership."

About GE DRS

Founded in 1990, and acquired by General Electric in 1993, GE Disaster Recovery Services is based just outside Toronto, Ontario. The company currently concentrates on three principal business activities: Guaranteed Technology Replacement, in which the company delivers computing hardware within 12-48 hours of a disaster declaration; Mobile Recovery, in which the company delivers hardware, temporary facilities, and emergency satellite connectivity; and Consulting. For more detailed information, please visit www.gedisasterrecovery.com.

About Generation Partners

Generation Partners is a $325 million private investment firm focused on providing equity capital to a broad range of growth companies. The firm targets investments primarily in small to medium-size buyouts, as well as venture capital investments in Information Technology and Communications. Some of Generation's portfolio companies include: High End Systems, Hotjobs, Promatory Communications, NTE, and American Cellular Corp. The firm has offices in Greenwich, CT and San Francisco. For more information on Generation Partners, please visit www.generation.com.