2006 was an excellent year for Brookwood Associates and our clients. We closed 15 transactions representing a firm record of over $1.7 billion in value during the past 15 months. Although our average transaction size has steadily increased in recent years, we continue to focus on deal sizes from $20 million to $250 million.

Our strategy remains the same: provide hands-on, very experienced, senior-level attention to a limited number of assignments. This focus has generated exceptional results and has been received well by our clients and referral sources. We are grateful that past clients and their referrals continue to comprise more than 50% of our business. With six Managing Directors, one Director, one Senior Vice President and two experienced Vice Presidents, we have maintained (and will continue to maintain) our very high proportion of senior bankers to our total professional staff.

Our business is focused on serving:

• private equity groups through the sale of their portfolio companies and the introduction to high quality investment opportunities;
• privately-owned and family-owned businesses with their change in control, financing and advisory needs; and
• public and private corporations with their M&A, financing, fairness opinion and restructuring advisory needs.

Our targeted industries include business services, consumer products, distribution, healthcare, manufacturing, restaurants and retail.

In addition to achieving excellent results for our clients in 2006, we are pleased to announce the following promotions and additions to our staff:

• Kevin Kaeppler has been promoted to Director;
• Matt Whiting has been promoted to Senior Vice President; and
• Michael Stollmack has joined us as Vice President.

We welcome the opportunity to speak with you about opportunities where we may assist with sell-side or buy-side M&A, debt and equity financing, bankruptcy/restructuring advisory and fairness opinions.

We appreciate our relationship with you and look forward to connecting in 2007.