Press Release – July 19, 2004

Covington Associates Completes the Sale of Roll Systems, Inc. to
Böwe Systec International GmbH

Boston, MA – July 19, 2004 – Covington Associates, a specialty investment bank offering financial advisory services to middle market technology, healthcare, and consumer/industrial companies, announced today the sale of its client Roll Systems, Inc. (“Roll Systems”), North America’s largest manufacturer of high-speed paper handling, converting and monitoring systems for digital printers, to Böwe Systec International GmbH (“Böwe”), a provider of paper management systems for high-volume mail processing. The combined company will offer a “one-stop-shop” solution for the digital printing industry from Roll Systems’ print operations to the inserting and finishing systems from Böwe. The terms of the transaction were not disclosed.

The acquisition of Roll Systems marks the second transaction in the print management industry for Böwe.  Last year, Böwe entered into a joint venture with Bell+Howell acquiring 50 percent interest in that company.  Böwe shares are publicly traded in Germany.

George McKenna, Roll Systems President and CEO, said in an earlier statement, “The transaction will bring substantial benefits to both Roll Systems customers and employees.  As part of a larger organization, we will enjoy an independent service support organization, expanded technological resources and an international infrastructure to deliver more comprehensive solutions.”

According to Böwe’s Chairman and CEO, Dr. Claus Gerckens, “With the acquisition of Roll Systems, we strengthen our strategic market position in the entire digital printing process…For our many customers, we will bring the added value of offering a single source supplier to meet these needs.”

 

About Roll Systems, Inc.

Founded in 1987, Roll Systems is North America’s largest manufacturer of high-speed digital paper handling, converting and monitoring systems for digital printers.  Roll Systems’ products are sold and serviced in over 50 countries.  Roll Systems employed over 100 people as of March 31, 2004 and is privately owned.

About Covington Associates

Covington Associates is a specialty investment banking firm offering financial advisory services in the areas of mergers, acquisitions and capital raising.  For more than a decade, Covington Associates’ senior advisors have been providing a superior level of service to middle-market companies in the technology, healthcare and industrial/consumer sectors.  Founded in 1991, Covington Associates has successfully completed over 70 transactions of privately-held and publicly-traded companies ranging in value from $5 million to over $1 billion.  For more information, visit the company’s web site at www.covingtonassociates.com.