Kirtland Capital Partners Acquires Vitex Packaging Group, Inc.

July, 2004
Beachwood, OH – Kirtland Capital Partners IV L.P. (“KCP”) has completed the purchase of Vitex Packaging Group, Inc. (“VPG”). Terms of the transaction were not disclosed.

VPG is a leading provider of flexible packaging for a variety of applications in the tea, medical, food and snack markets. Headquartered in Suffolk, Virginia, VPG is comprised of three businesses: Vitex Packaging, Inc., the leading domestic producer of paper and barrier laminate tea bag envelopes and tags; Genesis Converting Corporation, a leading provider of medical packaging applications; and Schuster Flexible Packaging Corporation, a regional packaging supplier to the food and snack industry.

“Vitex is the first investment in our new fund. It fits all of KCP’s investment criteria, which includes a strong management team, leading and defensible positions in desirable and growing niche markets and the potential to add material value and grow the business,” said David W. Halstead, Managing Partner at Kirtland Capital Partners.

“We are very excited about the partnership that we have developed with Vitex’s senior management team and look forward to working with them toward the goal of building VPG into a larger and more profitable flexible packaging company with a continuing focus on differentiating itself from the competition and adding value to its customers,” he said.

The association with Kirtland Capital will be a tremendous benefit to VPG. Kirtland's expertise and experience in strategic planning and capital resources will complement and support VPG's long-term growth objectives in our core businesses. Working together we believe we can make a good company even better,” said Eli Carmeli, President and CEO, Vitex Packaging Group.

About Kirtland Capital Partners
Kirtland Capital Partners is a leading private equity fund focused on control equity investments in lower middle market niche manufacturing, distribution and business-to-business service companies. During its 26 year history, KCP has generated significant value from its 46 investments through a consistent investment strategy and active involvement in portfolio management. KCP has over $425 million of capital under management from an investor group that includes both institutional and individual investors. For more information call David Halstead at (216) 593-0100.

About Vitex Packaging Group
Vitex Packaging Group is a leading provider of flexible packaging for a variety of applications in the tea, medical, food, and snack markets. VPG is comprised of three businesses; Vitex Packaging, Inc., Genesis Converting Corporation and Schuster Flexible Packaging Corporation. For more information about VPG, visit the Company’s website at www.govpg.com.

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