Press Release – March 21, 2006

Covington Associates Advises on Sale of Katahdin Industries, Inc.

Boston, MA — March 21, 2006 — Covington Associates LLC announced today that it acted as the exclusive sell-side advisor to Katahdin Industries, Inc. (“Katahdin”), a leading specialty Teflon® coating and aluminum anodizing metal processing company in its sale to Katahdin Acquisition, Inc., an entity formed to consummate the transaction by Alacrity Material Technology LLC (“Alacrity”) and Seacoast Capital LLC (“Seacoast”).  The terms of the transaction were not disclosed. Katahdin Industries was previously a portfolio company of TSG Equity Partners LLC, (“TSG”) a private equity firm based in Stow, MA.  BankNorth provided the senior financing and Seacoast provided both mezzanine financing and equity to the transaction.  Alacrity and existing management also provided equity to finance the deal.

Based in Natick, MA, Katahdin operates through three subsidiaries:  Precision Coating Company, Inc. a leading provider of metals and materials finishing services; Duralectra, Inc., one of the largest aluminum hard anodizing facilities in the Northeast and the Sanford Process Corporation, owner of the Sanford Process®, the leading proprietary technology currently used in the global aluminum hard anodizing market.

According to Mike Kent, a Vice President at Covington Associates and advisor on the transaction, “This transaction represented a win win outcome for all parties.  It was the right time for TSG to monetize its existing investment in Katahdin.  Alacrity and Seacoast will add human capital to the existing management team and build on the strong platform that TSG and Bill Corcoran have established in the materials and metals finishing markets.”

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 www.covingtonassociates.com.