Industrial Opportunity Partners acquires The Algoma Group, a leading wood door manufacturer

Doors and Hardware, June, 2006

The Algoma Group ("Algoma" or the "Company"), comprised of Algoma Hardwoods, Inc., Appalachian Door, LLC., and Ameri-Door, Inc., have been acquired by Industrial Opportunity Partners ("IOP"), a Chicago-based private equity firm, together with co-sponsor American Capital Strategies. Algoma is a leading manufacturer and distributor of interior wood doors serving the commercial construction market. Terms of the transaction were not disclosed.

Headquartered in Algoma, WI, the Company has a long history of manufacturing high quality interior wood doors for use in commercial construction. Algoma maintains manufacturing facilities in Algoma, WI, where it is a significant local employer, as well as in Jefferson City, TN. Additionally, the Company has a network of value-added distribution facilities throughout the United States. The Company's range of products includes 5-ply, 7-ply, stile and rail, and fire-rated wood doors with a broad array of veneer, finishing and machining options.

John M. Colaianne has been appointed President and CEO of The Algoma Group. Mr. Colaianne is a member of IOP's Board of Operating Principals, which is comprised of seasoned business executives with the skills and desire to provide leadership in businesses acquired by IOP.

Adam R. Gottlieb, Managing Director of IOP, stated, "We are very pleased to acquire The Algoma Group, a company whose strong brand recognition is a result of superior product quality and customer service. IOP is excited to build on these strengths to continue Algoma's long history of growth."

Ken Tallering, Senior Managing Director of IOP, added, "The acquisition of The Algoma Group highlights IOP's strengths of providing management resources and operational expertise to manufacturing businesses with strong products and market positions. We and our partner, American Capital Strategies, are excited to support Algoma and its management team in accomplishing its goals."

Algoma Hardwoods Inc., 1001 Peery Street, Algoma, WI 54201 (920/487-5221) www.algomahardwoods.com.