Aerospace & Defense

Arlington Capital Partners Announces $31.5 Million Investment in NLX Corporation

WASHINGTON, DC, April 28, 2003 — Arlington Capital Partners, a Washington, DC based private equity firm, today announced a $31.5 million growth equity investment in NLX Corporation — the largest private designer, manufacturer and integrator of advanced military and commercial flight simulators and weapon systems trainers.

Headquartered in Sterling, VA, NLX employs more than 600 people and develops simulation equipment and training systems for a targeted range of military platforms including fighter jets, bomber aircraft, helicopters, transport planes, intelligence surveillance and reconnaissance platforms and naval vessels. The use of NLX simulators helps the United
States military train pilots and soldiers for highly demanding maneuvers and life-threatening scenarios that increase the likelihood of mission success as well as reduce the loss of life and equipment.

NLX is also one of only four companies in the world to achieve a Level D simulator qualification — the highest designation given by the FAA. In addition, the company furnishes comprehensive systems engineering, operations, maintenance and logistics support to its training systems and information technology customers, which include all three branches of the United States Armed Forces (Air Force, Navy, and Army), commercial aerospace companies and original equipment manufacturers.

In making today’s announcement, Robert Knibb, Partner at Arlington Capital Partners, stated, “The rapidly changing nature of warfare, combined with an increased focus on operational readiness in both government and commercial sectors, demands the very best in training. NLX, which provides full fidelity training leveraging the latest technology, open systems and advanced networking capabilities, has successfully emerged at the forefront of this dynamic industry change.”

Added Tony Syme, CEO and co-founder of NLX, “Our partnership with Arlington Capital represents an important milestone in what we anticipate will be a new chapter in the accelerated growth of our company. Arlington brings substantial corporate operational experience and government, international and commercial relationships to help fuel additional larger contract wins as well as add-on opportunistic acquisitions. Further, Arlington Capital’s equity investment will enable us to take advantage of the tremendous growth in our industry, which is being driven by technological advances, cost efficiencies, personnel safety and increased operational readiness and mission effectiveness.”

Also commenting today was Peter Manos, Principal at Arlington Capital Partners, who noted, “Our investment in NLX meets all of the criteria preferred by Arlington Capital Partners: backing first-rate founders and executives, investing in an industry with strong growth dynamics, finding businesses with high barriers to entry and investing in opportunities
where our relationships and experience can add value.”

“Our partnership with Arlington Capital represents an important step in the growth of the Company,” said Tony Syme, CEO and co-founder of NLX. “The corporate operational experience operating knowledge and government and commercial relationships provided by Arlington Capital will accelerate NLX’s recent wins of larger contracts as well as add-on opportunistic acquisitions. Arlington Capital’s equity investment will help us take advantage of the tremendous growth in our industry. This growth is being driven by technological advances, cost savings, personnel safety and increased operational readiness and mission effectiveness.”

About Arlington Capital Partners:

Arlington Capital Partners is a Washington, DC-based private equity fund with over $450 million of committed capital focused on middle market buyout investment opportunities in growth industries including the business services and outsourcing, aerospace/defense, IT and engineering services, media, education and training, healthcare services, 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.

About NLX Corporation:

NLX Corporation is a provider of full-scale flight simulators and training systems. NLX employs more than 600 people at 20 locations across North America including its headquarters in Sterling, Virginia near Washington Dulles Airport. By applying the latest technology, sound program/business management and working closely with the customer, NLX has developed a proven track record of customer satisfaction. This approach results in the delivery of on-time, cost-effective and high quality products. NLX has been was named in Inc. Magazine’s annual list of America’s fastest-growing private companies for 3 consecutive years.

Robert Knibb and Peter Manos
Arlington Capital Partners
5425 Wisconsin Ave
Suite 200
Chevy Chase, MD 20815
(202) 337-7500
(202) 337-7525 (fax)

Tony Syme
NLX Corporation
22626 Sally Ride Drive
Sterling, VA 20164
(703) 234-2100
(703) 234-2103 (fax)

SOURCE: Arlington Capital Partners