Aerospace & Defense

Arlington Capital Partners Announces Acquisition of Woven Electronics by its Portfolio Company Thermal Solutions

WASHINGTON, DC, March 27, 2006 – Arlington Capital Partners, a Washington DC-based private equity firm, announced the acquisition of Woven Electronics Corporation (“Woven Electronics”), in partnership with management, by its aerospace/defense portfolio company Thermal Solutions, Inc. (“Thermal Solutions”). Based in Simpsonville, South Carolina, Woven Electronics designs and manufactures custom-engineered electronic interconnect solutions for customers in the defense, aerospace, homeland security and commercial sectors, and its products facilitate the transfer of power and information between components and systems. Woven’s products are primarily found in defense applications including precision guided munitions, military aircraft, helicopters, shipboard missile launchers, radar systems and nuclear submarines.

Headquartered in Hampton, New Hampshire, Thermal Solutions is a leading designer and manufacturer of custom-engineered thermal management and electronics component and subsystems that provide solutions where heat dissipation is critical to maintaining the optimal performance of complex and high performance electronics systems. Through its three operating divisions, the Company designs both the individual high heat transfer devices, such as heat sinks, heat exchangers, heat pipes and cold plates, and the full subsystems comprised of such devices fully populated with electronics. Thermal Solutions’ products are primarily sold into the military/defense, aerospace, and commercial markets.

“The proprietary engineering expertise of both companies combined with complementary product lines create a competitive advantage in providing turn-key systems solutions for applications which are mission-critical and must provide 100% reliability in extreme and hostile environments,” said Robert Terenzi, CEO of Thermal Solutions. Added Tommy Little, President of Woven Electronics, “We are excited to have the opportunity to partner with Thermal Solutions and Arlington Capital. Arlington’s commitment to investing in aerospace/defense and the combined leadership positions of both Woven and Thermal Solutions further enhances a platform with the resources and capital to better serve our customers and to grow on both an organic basis and through add-on acquisitions.”

“The Woven Electronics acquisition will broaden Thermal Solutions’ product line, facilitate its strategic focus on turnkey system sales over component sales, and expand the Company’s customer base,” said Peter Manos, a Partner at Arlington Capital Partners. “In addition, among the many things which attracted us to Woven were the Company’s position as a sole-source provider on a broad array of over 25 diverse platforms that represent integral elements of both the near-term and long-term strategies of the U.S. Department of Defense,” added Robert Knibb, a Partner at Arlington Capital Partners. “The entrenched position of both companies in their respective fields and the long-term nature of their underlying contracts and platforms provide high predictability and visibility into the combined company’s performance.”

About Arlington Capital Partners:

Arlington Capital Partners (www.arlingtoncap.com) is a Washington, DC-based private equity fund with over $1 billion of committed capital focused on middle market buyout investment opportunities in growth industries including: aerospace/defense, IT and engineering services, media, education & training, healthcare services, business services & outsourcing, and specialized manufacturing and related industries. The firm’s professionals have a unique combination of operating and private equity experience that enables Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their company’s position as leading competitors in their field.

SOURCE: Arlington Capital Partners