Churchill Financial Announces Acquisition of Churchill Capital's Mezzanine Finance Business

Business Wire, April 12, 2007

NEW YORK -- Churchill Financial Holdings LLC ("Churchill Financial"), a middle market commercial finance company, announced today that it has completed the acquisition of Churchill Capital Inc.'s Mezzanine Finance Business.

Churchill Capital's Mezzanine Finance Business originates, structures and manages subordinated debt investment funds providing capital to private equity sponsored middle market companies throughout North America. Started in 1987, it is one of the nation's leading providers of subordinated debt capital to the middle market. During its 19-year history, Churchill Capital's Mezzanine Finance Business has completed approximately 90 investments totaling in excess of $800 million in invested capital.

The management team at the Mezzanine Finance Business, led by Michael J. Hahn, a co-founder of both Churchill Capital and Churchill Financial, will join and become partners in Churchill Financial. The team, which will continue to be based in Minneapolis, MN, will become the platform for Churchill Financial's growth in mezzanine lending to the middle market.

"We are delighted to have the senior management and employees of Churchill Capital's Mezzanine Finance Business join our team at Churchill Financial. They bring a wealth of experience in mezzanine finance investing and a well-recognized brand name, and we believe they will have an immediate, positive impact on our business" said Ken Kencel, President, CEO and co-founder of Churchill Financial. "We hope to leverage their expertise in mezzanine finance and significantly improve our one-stop financing capability to better serve our private equity clients."

Mike Hahn, CEO of Churchill Capital's Mezzanine Finance Business commented, "Churchill Financial is an ideal partner for us as we grow our business. By joining with Churchill Financial, we substantially improve our access to capital and middle market financing opportunities while combining two important brands under one umbrella. The opportunity with Churchill Financial is clearly a win-win for our employees, owners, and our mutual private equity sponsor customers."

About Churchill Financial

Churchill Financial, based in New York, is a leading commercial finance and asset management company focused on providing debt financing to middle market companies and managing portfolios of CDOs and other fixed income funds. The firm currently has over $4.5 billion in assets under management. It targets lending to companies backed by leading private equity firms and other investors. Churchill Financial was founded by Bear Stearns Merchant Banking and Senior Management in February 2006 and has over $750 million of committed capital to support its financing activities.