Press Release – January 6, 2005

Covington Associates Advises ExpressPoint Technology Services, Inc. on Debt Refinancing

Boston, MA — January 6, 2005 — Covington Associates LLC announced today that it has arranged $10 million of senior secured debt and $1.5 million of a senior subordinated note for ExpressPoint Technology Services, Inc (“ExpressPoint”), a leading provider of outsourced aftermarket logistics and repair services, based in Golden Valley, Minnesota.  The financing for both the senior secured debt and the senior subordinated note was provided by Fifth Third Bank (“Fifth Third”), headquartered in Cincinnati, Ohio.

The company’s aftermarket logistics and repair services include warranty processing, parts sourcing, logistics and inventory management solutions and product repair, among others.  They offer their services to a number of Fortune 500 companies. The senior financing will allow the company to refinance its existing senior indebtedness and expand its operations with the development of a low cost production facility in Juarez, Mexico.  In addition to their headquarters in Golden Valley, MN the company operates a second facility in Lincoln, California.

Fifth Third Bank is a diversified financial services company operating four main businesses:  retail, commercial, investment advising and Fifth Third Processing Solutions.  Fifth Third Bank has banking centers throughout several Midwestern and Southern states.

Dave Gesmondi, a Principal at Covington Associates and lead advisor to ExpressPoint on the transaction, commented “This financing allows ExpressPoint to embark on a major growth initiative-and facilitate the development of its low cost production facility in Mexico.  The Company’s Mexican operation will be a unique platform and a strong competitive advantage for further expansion in the aftermarket logistics and repair segment.  As a result, ExpressPoint will continue to solidify its brand name as the premier provider of aftermarket repair and logistics services for the computer hardware industry. ”

Frank Hallowell, Vice President and Chief Financial Officer of ExpressPoint, said “Covington Associates LLC did an excellent job in arranging this financing for ExpressPoint.  We had a tight time frame and a number of constituencies to address. Their diligent process produced a number of competitive and flexible proposals.  We had the opportunity to evaluate and select the most flexible financing package that provides the necessary  capital for our future growth and expansion.  It would have been very difficult to complete this refinancing without Covington.

About ExpressPoint Technology Services, Inc.

ExpressPoint Technology Services delivers comprehensive lifecycle support services that help technology companies aggressively manage their service delivery costs. Whether companies market or manufacture computer devices, networking equipment, retail store systems, communications products or voice and data infrastructure equipment, ExpressPoint can serve as their full-service product support center. ExpressPoint is a major EMS firm focusing on customized aftermarket services and reverse logistics solutions for technology products. To learn more about ExpressPoint, visit

About Covington Associates LLC

Covington Associates is a specialty investment banking firm founded in 1991 serving business service, consumer, industrial, healthcare and technology companies throughout the country.  Focused on mergers and acquisitions, debt and equity capital raising, debt and equity restructuring, and strategic advisory assignments for middle market companies, Covington Associates has completed transactions ranging in value from $10 million to over $1 billion for both private and publicly traded companies.  To learn more about Covington Associates, visit