Pfingsten Publishing Acquires `Mortgage Originator' Magazine

Business Wire, March 22, 2000

Business Editors

CLEVELAND--(BUSINESS WIRE)--March 22, 2000

Transaction expands firm's portfolio of financial

services publications; additional acquisitions planned in major

strategic growth initiative

Pfingsten Publishing, L.L.C., a business-to-business publishing company headquartered in Cleveland, today announced the acquisition of Mortgage Originator magazine, its mortgage related conference and seminar business and all other related assets from the Mortgage Publishing Group, Inc., of San Diego, California. Mortgage Originator is the leading trade magazine covering the mortgage origination business.

Effective March 15, 2000, the purchase is a strategic acquisition designed to expand Pfingsten's portfolio of financial services publications. The company already publishes Life Insurance Selling for life and health insurance salespeople and American Agent & Broker for property and casualty insurance agents and brokers. Pfingsten also publishes Decor, a magazine for art and framing retailers, and manages the Art Buyers Caravan series of trade shows.

The acquisition marks the latest phase of an initiative that began with the purchase of Commerce Publishing Company last April. Since that purchase, Pfingsten has concentrated on creating the infrastructure to support rapid growth.

The company now plans a swift expansion through add-on acquisitions in its current vertical markets as well as new ones. The firm also is planning internal growth through trade shows, electronic products and ancillary products that complement the markets served by its publications.

"Mortgage Originator is a natural fit with our other financial services publications, and this acquisition has the extra benefit of adding to our trade show holdings," said Joseph M. Bennett, President of Pfingsten Publishing. "It is precisely the kind of property we envisioned bringing under the Pfingsten umbrella when we created our strategic expansion program."

Mortgage Originator is a monthly publication for mortgage bankers, mortgage brokers and loan officers employed by banks, savings and loans, and credit unions. It has the leading share of advertising dollars in its market.

Under the terms of the acquisition, the Mortgage Originator staff will be kept intact in San Diego and will report to Chuck Hirsch, group publisher for Pfingsten's financial services publications.

"Selling to Pfingsten puts Mortgage Originator, our seminars and conferences, and our entire staff in good hands," said Chris S. Salazar, the owner of Mortgage Publishing Group, who is stepping down to manage another company he owns. "Pfingsten has both the financial resources and the publishing expertise to build the business, so this is an attractive development for all of us."

Pfingsten Publishing is owned by Pfingsten Partners, L.L.C., a private equity firm based in Deerfield, Illinois, that acquires and grows middle market companies in partnership with management.

Pfingsten Partners formed Pfingsten Publishing in 1998 as a vehicle to help select, manage and grow publishing acquisitions in specialty fields. The publishing group's first acquisition was Commerce Publishing Company and its Life Insurance Selling, American Agent & Broker, Decor and Art Buyers Caravan trade show properties.

The Mortgage Publishing Group was brought to Pfingsten's attention by The Jordan, Edmiston, Group, Inc., a New York investment banker. The acquisition was financed through a limited partnership fund called Pfingsten Executive Fund II, L.P., that Pfingsten Partners uses to acquire mature middle market companies involved in publishing, manufacturing and wholesale distribution.