Acquisition: Iron Mountain to Acquire the Nation's Largest Underground Records Management Provider

Edge: Work-Group Computing Report, June 15, 1998

Iron Mountain Incorporated announced Thursday two acquisitions for aggregate cash consideration of approximately $39 million. The transactions include the purchase of a 1.7 million square foot underground facility in the Pittsburgh, Pennsylvania market and a new 60,000 square foot state-of-the-art facility in the Seattle, Washington market. Combined, the two companies had total 1997 revenues of approximately $12 million.

Vital Records Expansion Complements Recent Expansion in Data Security and Healthcare Records Management

Iron Mountain has entered into a definitive agreement to purchase National Underground Storage, Inc., a Boyers, Pennsylvania based firm specializing in vital records management. National Underground's facility, located approximately 55 miles north of Pittsburgh, gives Iron Mountain a new presence in the Pittsburgh business records storage market and adds significant national market presence to its existing vital records business line. Iron Mountain estimates that five percent of a company's records are vital records, or irreplaceable records essential to a company's survival. Underground climate-controlled vaults provide the highest level of security for vital records such as patents, blueprints, formulas, deeds, copyrights, master audio/visual media and software source code.

Iron Mountain Chairman and CEO C. Richard Reese commented, "Our first location was an underground facility in the original Iron Mountain. We have tracked the development of National Underground Storage for many years and the acquisition of a unique facility of this size and quality is a rare opportunity." National Underground President David L. Sansom, commented, "This transaction will be beneficial to both our employees and customers. We are partnering with the strongest company in the records management industry and our customers will be as well served in the future as they are today."

This acquisition brings to nine the number of underground record centers operated by Iron Mountain nationwide and solidifies Iron Mountain's position in the vital records market.

Iron Mountain Strengthens Position in Seattle, Tacoma and Portland Oregon Iron Mountain also completed the acquisition of Bekins Northwest Record Centers, a division of Bekins Moving and Storage Co. Bekins serves customers in the greater Seattle and Tacoma, Washington and Portland, Oregon markets. This is the sixth acquisition in 13 months to increase the company's market presence in the Seattle and Portland markets, and solidifies Iron Mountain's position as the leading records and information management provider in the region.

Iron Mountain Chairman and CEO C. Richard Reese commented, "Bekins is a quality competitor in the Northwest and has a well-deserved reputation for customer service. We could not be more pleased with the fit between our existing operations in Seattle and Portland and those of Bekins."

Iron Mountain operates in 54 markets in the United States and one in the United Kingdom. The Company serves more than 50,000 customer accounts, including more than half of the Fortune 500 companies. Iron Mountain provides a full array of records and information management services including: (i) off-site storage, management and related consulting services for business, healthcare and vital records; (ii) data security services including off-site storage and rotation of electronic records; (iii) information technology staffing services; and (iv) sales of related products.