Merger Creates New Major Player in Information Technology Staffing and Solutions Industry; Proven Team At It Again

Business Wire, Sept 17, 1998

ROCKVILLE, Md. and NEW YORK--(BUSINESS WIRE)--Sept. 17, 1998--Two leading Information Technology staffing and solutions firms, AETEA Information Technology, Inc. ("AETEA") of Rockville, Maryland and Spectrum Concepts Consulting Corporation ("Spectrum") of New York, N.Y., have just completed a merger as part of a recapitalization funded by one of the country's largest private equity capital firms, GTCR Golder Rauner, LLC. ("GTCR"), located in Chicago. The combined companies will operate under the AETEA name and, with 1998 projected revenues of over $75 million and over 500 Information Technology (IT) professionals, AETEA becomes one of the major information technology staffing and solutions firms in the northeastern United States. AETEA's co-CEOs are Howard Stein and Fred Shulman, who founded AETEA in January 1997. AETEA is a member of the National Association of Computer Consultant Businesses (NACCB). From Childhood Friends to Industry Leaders

Stein and Shulman have been friends and business partners since their childhood days when they were young entrepreneurs in many businesses. They founded COMSYS Technical Services, Inc. in the early 1980's and grew it to become the largest IT staffing firm in the Washington, D.C. area and one of the largest independently owned IT firms in the country, before selling it in 1994. After taking time off, Stein and Shulman studied their industry and saw the need for a new firm headed by a management team composed of industry insiders with a track record of success. In early 1998 two additional partners joined the firm, Charlie Brown, former CFO of COMSYS joined AETEA as CFO, and shortly thereafter a former COMSYS regional vice-president, Alan Shulman, joined AETEA as Executive Vice-President to head up its mid-Atlantic region. "In the last 18 months", according to Stein, "we built AETEA from ground zero to over 150 consultants servicing dozens of major customers. Adding our solutions practice areas has been a key element of our growth. Today, the PeopleSoft, Internet and Network Services practice areas make up an increasingly large segment of our business. The reception we've received in the marketplace has been outstanding, both from consultants and clients. It has helped to confirm our belief that there is room for another major player in the industry." A Private Equity Capital Firm Facilitates a Merger

A few months ago AETEA began meeting with GTCR to discuss its plan for a new coast-to-coast high tech staffing firm. According to Philip Canfield, Principal of GTCR, "we were thrilled about working with this outstanding and experienced management team from AETEA. I don't think there is a better group with the breadth of vision, depth of operating expertise, level of success, and ongoing enthusiasm to build a 21st century IT staffing and solutions firm. With GTCR's commitment as an investment partner in AETEA, we foresee AETEA becoming one of the biggest and best IT staffing and solutions firms in the country." Finding the Perfect Match

Spectrum was a natural merger partner for AETEA. Headquartered in New York City, with offices in New Jersey and Philadelphia. Spectrum was formed in 1979, acquired by Legent Corporation in 1991, and then sold by Legent in 1992 to its President and CEO Jeff Sardis, who had been with Spectrum since 1987. Sardis took what was a small local firm and built it to over 350 consultants in three cities. Spectrum has grown at an average of 40% annually since Sardis took over. In 1998 alone, Spectrum is on target to achieve a 70% increase in revenue. A key strength that Spectrum brings to the combined companies is its ability to successfully build offices from the ground up. Spectrum's clients include large customers in the banking, brokerage, insurance, financial services, and pharmaceutical industries. Sardis will be a member of AETEA's executive management team and run its northeastern U. S. region. Forward Thinking

According to AETEA Co-CEO Fred Shulman, "AETEA has a very active acquisition strategy. With additional GTCR investment capital, we hope to do at least 2 or 3 more acquisitions in 1998, and many more in 1999. We are in the process of identifying regional `platform' companies like Spectrum whose executives want to remain with and help build AETEA into a national leader." In conjunction with its acquisitions, AETEA plans to install robust front office management systems that, says Shulman, "will allow for more efficient recruiting on a regional and national basis and in the end provide AETEA's clients with the best consulting solutions."

With increased merger activity in the information technology industry across the next few years, Stein emphasizes something that distinguishes AETEA from its competitors. "All of us on the AETEA team - including the executives from the companies we plan to acquire -- have the industry experience required to meet our abiding commitment to deliver excellent opportunities to our consultants and outstanding IT consulting solutions to our clients."