Private Equity Firms Invest in Harlem Furniture; Pouschine Cook Capital Management, LLC, Bear Growth Capital Partners and Mercantile Capital Partners Invest in Chicago Furniture Retailer

Business Wire, Feb 7, 2005

LOMBARD, Ill. & NEW YORK -- Pouschine Cook Capital Management, LLC, Bear Growth Capital Partners, and Mercantile Capital Partners, three private equity firms and Bruce Berman, CEO of Harlem Furniture, today announced a joint investment in Harlem Furniture, a leading Chicago based furniture retailer founded in 1912 by Sam Berman.

Bruce Berman, CEO of Harlem Furniture commented, "We are excited about the opportunities this funding offers Harlem Furniture. The additional capital will allow our company to grow both geographically as well as expand product offerings." Bruce Berman continues, "Our Company is looking forward to expansion in the greater Chicago area and potentially throughout the Midwest."

Under Bruce Berman's leadership, the company has become one of the leading furniture retailers in the country with 15 showroom locations and over 600 employees. It is one of the 50 largest furniture chains in the United States. Bruce Berman will continue to be CEO and run the day-to-day operations. No financial terms were released.

Harlem Furniture has excelled in the Chicago and Indiana market by offering excellent service and product selection at strong values. The company specializes in complete furniture room solutions for the home, including bedding and accessories.

About Harlem Furniture: Founded in 1912, Harlem Furniture is a leading furniture retailer in the greater Chicago area and one of the 50 largest furniture chains in the United States. With 15 showroom locations and over 600 employees, Harlem Furniture continues to succeed because it values excellent service and affordable prices. Harlem Furniture is headquartered in Lombard, Illinois.

About Pouschine Cook Capital Management, LLC: Pouschine Cook is a private equity firm focused on investing in proven, private, middle market companies which are leaders in their niche. Pouschine Cook's professionals are active investors who work closely with management and shareholders to build equity value. Investments are generally made to support internal growth, finance acquisitions, strengthen capitalization or transition shareholders. More information about Pouschine Cook can be found at http://www.pouschinecook.com.

About Bear Growth Capital Partners: Bear Growth Capital Partners ("BGCP") is an affiliate of Bear Stearns Merchant Banking, the private equity arm of Bear Stearns & Co. (NYSE:BSC). BGCP focuses on making investments in middle market companies valued between $10 and $100 million. BGCP will invest in compelling growth capital opportunities, traditional buyouts, recapitalizations, co-investments, and control and minority ownership positions alongside superior management teams and other private equity sponsors. More information about BGCP can be found at http://www.bsmb.com.

About Mercantile Capital Partners: Mercantile Capital Partners is a private equity firm focused on the broader consumer sector, including segments such as retail, food and beverage, restaurant, apparel and business services. The fund's investments may take a variety of forms, including private company recapitalizations, growth equity investments, traditional acquisitions, leveraged transactions and structured-securities investments. Mercantile Capital has participated as both a lead and a co-investor. All of the Fund's senior professionals have a unique combination of operating and financial experience. More information about Mercantile Capital can be found at http://www.mercantilecapital.com.