Direct Group Acquired by Management and Schroder Ventures US Funds

New Owners Begin Aggressive Growth Plan to Benefit Customers

WEST TRENTON, NJ, April 26, 2004 — The senior management of Direct Group (“DG”), together with funds advised by private equity firm Schroder Ventures US, announced today that they have acquired DG, a leader in the premium, time-sensitive, volume-mailing segment of the direct mail industry, for a combined consideration of approximately $50 million.  DG was acquired from Prinexus, Inc.   

DG will retain its management at both the senior and plant levels, including Manny Ortiz, who will remain President and Chief Executive Officer. Ortiz acquired DG in 1995 and has since grown revenues by over 20% annually to more than $54 million today. He and Executive Vice President of Sales, Chris Ryan, both recognized leaders in the direct marketing industry, were jointly named “Direct Marketer of the Year” for 2002 by the Philadelphia Chapter of the Direct Marketing Association.

"We're looking forward to working closely with Schroder Ventures US, our new partner," said Ortiz. "With their backing and strategic expertise, we will be well positioned to aggressively expand our organization through both internal development and targeted acquisitions."

Monty Yort, a partner at Schroder Ventures US, said, "Recognizing the potential for growth, we have targeted the direct marketing sector for investment and were introduced to DG’s experienced and accomplished management team, whom we are very pleased to team up with in this investment.  With DG as a platform, we will build on the Company’s success to date, providing investment capital that will enable it to support its customers with the most innovative technology and services in the industry."

To fund this transaction as well as future growth, DG established a $36 million credit facility which was provided by CapitalSource Finance LLC and Ableco Finance LLC, an affiliate of Cerberus Capital Management.  Legal services for the Schroder Ventures US Funds were provided by Morrison Cohen Singer & Weinstein, LLP.

About Direct Group

DG provides a full suite of direct mail services, including printing, letter shop, laser and other personalization, fulfillment, data services and creative consulting through long-term partnerships with world-class customers. The Company has facilities in Swedesboro and Robbinsville, New Jersey, and corporate offices in West Trenton, New Jersey.

About Schroder Ventures US

Schroder Venture Partners LLC (“Schroder Ventures US”) is one of six affiliated international private equity organizations advising over $7.5 billion of funds under management in 11 offices located in North America, Europe, and Asia. The firm is focused on middle market investment opportunities in the media, business services, communications, and technology services sectors in partnership with management. Schroder Ventures US currently advises the $270 million Schroder Ventures US Funds. Further information can be found on the web at www.svus.com.

Contacts:

For Schroder Ventures US                                                                For Direct Group

Molly Morse/Micheline Tang                                                                 Chris Ryan

Kekst and Company                                                                            Executive Vice President
(212) 521-4800                                                                                    (856) 241-9400