Dear Friends,

I would like to thank you for your continued support in making 2004 another record year for McColl Partners. Highlighting the firm’s activities,
McColl Partners has completed over $1 billion of middle-market transactions; participated in the ACG InterGrowth Conference; and added several members to the firm, including the founding of the new Financial Institutions Group.

Transactions of note include the sale of Ready Mixed Concrete Company to Audax Group; the sale of InteCap, Inc., a portfolio company of GTCR Golder Rauner, to Charles River Associates; the recapitalization of Installed Building Products; the acquisition by infoUSA of OneSource; and the acquisition by Delphi Medical Systems of Peak Industries.

This spring, I enjoyed the opportunity to speak alongside former Secretary of State, James Baker, at the 33rd ACG InterGrowth Conference in Boca Raton, Florida. As I commented then, 2004 proved to be a banner year for mergers and acquisitions, with deal volume reaching an all-time high. Though I cannot say that 2005 will be able to top the M&A activity seen in 2004, McColl Partners expects the year to be quite busy.

McColl Partners also made significant additions to the team, growing the firm from 18 professionals in 2003 to 24 professionals by year’s end. The most noteworthy additions to the team include the addition of the newly formed, dedicated Financial Institutions Group, led by Jack Jackson and Dick Vader. Given the importance of financial institutions to me professionally and personally, I am excited by the opportunity that Jack and Dick bring to the firm through their talent, experience, drive, and focus.

McColl Partners is off to a great start already in 2005 and is excited to announce the sale of eSmartloan.com to Capital One Financial Corporation and the sale of Zymed Laboratories Inc. to Invitrogen Corporation. As always, McColl Partners appreciates your support in its efforts.

Kindest personal regards.

Sincerely,

Hugh L. McColl, Jr.
Chairman, The McColl Group