Dear John:

Linsalata Capital Partners capped off another very active and successful year in 2005 – one which saw us complete nine transactions and close on our sixth and largest buyout fund in May, LinCap V, a $425 million fund. We finished 2005 with a very productive fourth quarter, which included the sale of two portfolio companies, Snyder Industries and America's Body Company and the recapitalization of our portfolio company, U-Line Corporation.

New Holding Group for Snyder
LinCap completed the year with the sale of Snyder Industries, Inc. to Sii Acquisition, Inc., a company owned by Cortec Group Fund III, L.P. and Snyder management. The transaction closed December 22, 2005. Snyder is a leading manufacturer of rotationally molded containers including storage and transportation tanks, intermediate bulk containers and residential septic tanks. The company's primary end markets are agricultural, industrial, food and residential applications. Snyder is headquartered in Lincoln, Nebraska, and operates molding facilities in Nebraska, California, Arkansas and West Virginia.

Snyder had annual revenues of $31 million when it was acquired by Linsalata Capital Partners Fund III, L.P. in December 1999. Snyder's steady growth was augmented early in the investment with the add-on acquisition of Central California Containers, in February 2001, providing Snyder with an important west coast presence. More recently, Snyder's emergence as a product innovator and category leader in several niche market segments were key factors in Snyder becoming an excellent investment during the LinCap ownership cycle. Annual revenues had grown to more than $55 million at the time of the sale.

ABC Rolls Into New Ownership
In late October, America's Body Company (ABC) was sold to Leggett & Platt, a developer, designer and manufacturer of engineered components including products for the automotive industry. With headquarters in Columbus, Ohio, ABC is a leading manufacturer and distributor/upfitter of commercial truck bodies and equipment for vehicle OEMs, major leasing companies, corporate fleets, government and truck dealers. Over 40 percent of ABC's products are proprietary designs and brands. The company operates eleven manufacturing facilities in seven states.

ABC was acquired by Linsalata Capital Partners Fund III, L.P. in October 1998 and had annual revenues of $119 million at the time of the acquisition. In the seven years of LinCap ownership, annual revenues increased to more than $160 million. This growth was fueled initially through an add-on acquisition strategy – four acquisitions in two years to extend distribution reach – while more recently focusing on the development of proprietary products, making ABC a solid investment for LinCap.

U-Line Recapitalization Nets A Cool Return Of Capital
At the beginning of the fourth quarter, LinCap completed a senior debt refinancing and subsequent redemption of the junior subordinated notes of U-Line Corporation.  The holders of the junior subordinated notes were all of the equity shareholders of the business including both LinCap and management. The redemption of the junior subordinated notes represented a return of approximately 25 percent of the total original capital invested by the equity shareholders for the acquisition of U-Line in April 2004.

U-Line is a $60 million designer and manufacturer of premium under counter refrigerators, icemakers and wine coolers with headquarters and manufacturing operations in Milwaukee, Wisconsin.  The company has experienced significant organic growth under LinCap's ownership as U-Line has focused on its strong brand leadership in under counter refrigeration products.

About Linsalata Capital Partners
Linsalata Capital Partners (www.linsalatacapital.com), located in the Cleveland suburb of Mayfield Heights, Ohio, was founded in 1984 and has combined its strong financial capabilities with extensive operational experience to accelerate the growth of middle-market companies in a broad range of industries.  In more than 20 years of investing, the firm has completed 77 buy-side transactions totaling over $2.0 billion.

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