Union Street Acquisition Corp. Announces First Quarter 2008 Results of RAZOR Business Strategy Consultants, LLC and Archway Marketing Services, Inc

Business Wire, May 19, 2008

* Combined First Quarter 2008 Revenues Increased 22.1% to $28.1 million

* Combined First Quarter 2008 Pro Forma Adjusted EBITDA Grew 45.0% to $3.1 million

* Combined First Quarter 2008 Pro Forma Cash Earnings Increased 38.5% to $1.9 million

* Combined Revenues for Twelve-Months Ended March 31, 2008 Increased to $112.0 million

* Combined Pro Forma Adjusted EBITDA for Twelve-Months ended March 31, 2008 Grew to $16.1 million

* Combined Pro Forma Cash Earnings for Twelve-Months Ended March 31, 2008 Increased to $9.9 million

* 2008 Outlook of Anticipated Double Digit Growth Affirmed

ALEXANDRIA, Va. -- Union Street Acquisition Corp. (AMEX: USQ, USQ.U, USQ.WT) ("Union Street") announced unaudited results for the first quarter ended March 31, 2008 for RAZOR Business Strategy Consultants, LLC ("RAZOR"), and Archway Marketing Services, Inc. ("Archway") based on information provided to Union Street from RAZOR and Archway. On February 27, 2008, Union Street announced that it had entered into definitive agreements to acquire privately held RAZOR, a rapidly growing direct and interactive marketing agency, and Archway, a leading provider of marketing operations management services.

Combined First Quarter Financial Results

Combined revenues of RAZOR and Archway for the first quarter ended March 31, 2008 grew to $28.1 million, a 22.1% increase from $23.0 million in the first quarter of 2007. Pro Forma Adjusted EBITDA for the first quarter ended March 31, 2008 increased to $3.1 million from $2.2 million in the first quarter of 2007, or 45.0%. Including pro forma income tax at an estimated rate of 39%, reduced by a recurring quarterly tax benefit of $0.6 million, and other adjustments, Pro Forma Cash Earnings for the first quarter ended March 31, 2008 were $1.9 million, an increase of 38.5% from $1.4 million in the first quarter of 2007.

Combined Financial Results for the Twelve-Month Period Ended March 31, 2008

For the twelve-month period ended March 31, 2008 combined revenues of RAZOR and Archway grew to $112.0 million. Pro Forma Adjusted EBITDA for the twelve-month period ended March 31, 2008 increased to $16.1 million. Including pro forma income tax at an estimated rate of 39%, reduced by a recurring annual cash tax benefit of $2.3 million, and other adjustments, Pro Forma Cash Earnings for the twelve-month period ended March 31, 2008 increased to $9.9 million.

First Quarter Financial Results for RAZOR

RAZOR's revenues for the first quarter ended March 31, 2008 grew to $5.1 million from $3.4 million in the first quarter of 2007, or 48.9%. Pro Forma Adjusted EBITDA for the quarter ended March 31, 2008 was $1.1 million, an increase of 74.1% from $0.6 million in the first quarter of 2007. Including a $0.2 million recurring quarterly cash tax benefit, RAZOR's Pro Forma Cash Earnings for the quarter ended March 31, 2008 increased to $0.7 million from $0.5 million in the first quarter of 2007, or 50.5%.

Significant accomplishments of RAZOR during the first quarter of 2008 included:

* Added two new digital communications and web development clients;

* Increased volume of print creative work for Domino's Pizza; and

* Continued to increase the volume of email and direct mail activity across all core accounts.

Financial Results for RAZOR for the Twelve-Month Period Ended March 31, 2008

RAZOR's revenues for the twelve-month period ended March 31, 2008 grew to $18.3 million. Pro Forma Adjusted EBITDA for the twelve-month period ended March 31, 2008 increased to $4.9 million in 2008. Including a $0.7 million recurring annual cash tax benefit, RAZOR's Pro Forma Cash Earnings for the twelve-month period ended March 31, 2008 increased to $3.3 million.

First Quarter Financial Results for Archway

Archway's revenues for the first quarter ended March 31, 2008 grew to $23.0 million from $19.6 million in the first quarter of 2007, or 17.5%. Pro Forma Adjusted EBITDA for the quarter ended March 31, 2008 was $2.0 million, and increase of 32.6% from $1.5 million in the first quarter of 2007. Including a $0.4 million recurring quarterly cash tax benefit, Archway's Pro Forma Cash Earnings for the quarter ended March 31, 2008 increased to $1.1 million from $0.9 million in the first quarter of 2007, or 31.8%.

Significant accomplishments of Archway during the first quarter of 2008 included:

* Expanded market share in the rapidly growing prepaid card industry through secured card distribution to over 15,000 retailers for NetSpend;

* Began management and distribution of e-commerce product purchases for Abbott Nutrition, including brands such as Ensure, Pedisure, Similac and Zoneperfect; and

* Finalized implementation and began providing marketing operations management services to Genzyme, Newell Rubbermaid and a leading mutual fund manager.

Financial Results for Archway for the Twelve-Month Period Ended March 31, 2008

Archway's revenues for the twelve-month period ended March 31, 2008 grew to $93.7 million in 2008. Pro Forma Adjusted EBITDA for the twelve-month period ended March 31, 2008 increased to $11.2 million. Including a $1.6 million recurring annual cash tax benefit, Archway's Pro Forma Cash Earnings for the twelve-month period ended March 31, 2008 increased to $6.5 million.