Intechra to Acquire Three More Companies

Business Wire, Dec 14, 2006

Unmatched in Size, Scale, Geographic Reach;

Significantly Increases Recycling Capacity

JACKSON, Miss. -- Intechra today announced definitive agreements to acquire three information technology asset disposition (ITAD) companies with locations across the United States:

* EPC, Los Angeles, an electronics recycling company

* Market2Market, Columbus, Ohio

* SpaceFitters, Hartford, Conn.

Intechra will acquire the three companies from Chasm Holding Corp.

Today's announcement comes on the heels of an announcement last month that Intechra has purchased Gold Circuit, an Arizona-based (ITAD) company with two facilities and a strong client base.

Upon completion, the three acquisitions from Chasm will increase Intechra's recycling capacity by 50 percent and give the company annual revenues in excess of $80 million - nearly twice the size of its nearest competitor. Terms of the agreement were not disclosed. The transaction is expected to close in January.

"This combination of companies creates a real powerhouse in an industry that is still relatively new," said Chip Slack, Intechra CEO. "This also accelerates our ability to capture more of the electronics recycling market, which we believe is increasingly important to our clients and prospects."

Intechra, with facilities in Columbus, Ohio; Dallas; and Casa Grande, Chandler and Phoenix, Ariz., currently has the capacity to recycle about six million pounds of electronic assets monthly at its Dallas and Casa Grande locations. With the addition of EPC's Los Angeles recycling plant, Intechra will have the capacity to recycle up to nine million pounds of electronics monthly. The combined company will have the capacity to process about 335,000 assets each month, including computers, monitors, laptops, routers, servers, etc.

"The global marketplace is looking for ITAD providers that manage every aspect of the disposition process. By significantly increasing our in-house recycling capacity, we are less reliant on downstream partners when ensuring environmental compliance," said Slack.

The acquisitions also give Intechra unmatched size, scale and geographic distribution - all competitive advantages in the emerging ITAD industry. Intechra is the only fully integrated ITAD provider with a national footprint covering every region of the country. This geographic distribution results in a cost savings for Intechra clients on shipping and speed to market for remarketed assets.

"The expansion of Intechra's footprint, particularly with the addition of a location in the Northeast, will be a plus for clients of all our companies. With facilities from coast to coast, no competitor can match our ease of logistics. Ultimately this, along with our size, scale and new recycling capabilities, will help us create a greater return for shareholders," Slack said.

Large companies and other organizations use ITAD companies to ensure disposal of retired computers and other electronics in compliance with federal, state and local laws for privacy and environmental protection. Intechra also helps clients earn as much as possible from the refurbishing and sale of used computers.

By 2009, consumers are expected to replace more than 800 million PCs and dispose of or "retire" more than 512 million. Large national and multinational companies are paying more attention to IT asset disposition because of federal privacy laws such as the Healthcare Insurance Portability and Accountability Act (HIPAA) and the Gramm-Leach-Bliley Act, as well as environmental legislation in 40 states addressing e-waste.

Chasm Holding Corp. Chief Executive Officer Steve Marshall said, "We have tremendous confidence that combining these companies is very positive for our clients. We have seen Intechra's ability to successfully integrate operations with merged companies."

Intechra intends to merge operations in cities where it has existing facilities. Following integration, the company will have six processing facilities strategically located from the West Coast to the East Coast:

* Los Angeles - EPC's recycling plant will remain open.

* Phoenix - Gold Circuit's Phoenix processing facility will merge into Intechra's existing Phoenix processing center.

* Casa Grande, Ariz. - Gold Circuit's recycling facility will remain open.

* Dallas - Intechra's Dallas facility will continue providing refurbishing, remarketing and recycling services.

* Columbus, Ohio - Market2Market's Columbus facility will merge into Intechra's existing Columbus location.

* Hartford, Conn. - SpaceFitters' location will remain open and anchor Intechra's services in the Northeast.

Intechra, which adheres to stringent quality standards, will put processes in place at its newly-acquired facilities to achieve ISO quality certification over time. Intechra's three original facilities are already ISO certified.

Intechra Holding Corp. significant investors are Chrysalis Ventures in Louisville, Ky.; Clayton Associates in Nashville, Tenn.; Votum Capital in Jackson, Miss.; WestWind Partners LLC in Quad Cities area of Illinois; Richland Ventures in Nashville, Tenn.; and SJF Ventures in Durham, NC. No investor owns a majority of the company.