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Health, Safety and Environmental Solution Completes Add-On Acquisition, forms Priority Solutions International
Contact: Chris Tofalli
Broadgate Consultants, Inc.

FOR IMMEDIATE RELEASE __________________________________________
NEW YORK, September 19, 2005 - Arsenal Capital Partners, a private equity firm that invests in middle-market manufacturing and business service companies, today announced the completion of an add-on acquisition for their portfolio company Priority Air Express, a non-asset based specialty distributor for pharmaceutical and other mission critical industries. Financial terms of the transaction were not disclosed.

Priority Air Express has combined operations with Distribution Solutions International ("DSI"), a non-asset based logistics company providing supply chain solutions to the pharmaceutical, airline and general transportation industries. Priority Air and DSI are the leading competitors in the pharmaceutical sample transportation sector. The newly integrated business, to be known as Priority Solutions International, has annual revenue in excess of $150 million, making it one of the largest companies providing transportation, logistics, and warehousing services to both major and emerging pharmaceutical companies.

Both companies will continue to serve their current customers using their pre-existing infrastructures, according to Chris Carpenter, the co-President of the new entity. "From the point of view of our customers, we now have more flexibility with a bigger footprint and new services not previously available as individual entities". According to David Mathia, Founder of DSI, "Both companies focus on providing complete solutions and outstanding customer service to their clients. Although we are currently leaders in our markets, the synergies between us will make Priority Solutions International even stronger. We look forward to working with Arsenal Capital to pursue new opportunities within healthcare and last mile logistics."

"Priority Solutions International provides pharmaceutical sample management services to six of the top ten pharmaceutical companies in the United States, as well as a significant number of mid-size and emerging pharmaceutical companies," said Jim Marden, a Managing Director of Arsenal Capital Partners. "This merger is a major step in Arsenal's strategy of creating a sizable healthcare vertical 3PL in an attractive, defensible market niche with multiple expansion opportunities."

Priority Solutions will maintain its home offices outside of Philadelphia and in Traverse City, Michigan, and warehouse locations in Philadelphia, Memphis, Chicago, and Los Angeles.

The transaction was financed by Priority Air's existing loan syndicate, which includes Wells Fargo Foothill, DB Zwirn & Co., and Audax Mezzanine Finance. Frazier Healthcare Ventures and Audax Mezzanine are minority co-investors with Arsenal Capital.

About Arsenal Capital Partners LP
Arsenal Capital Partners is a $300 million New York-based private equity fund that makes control investments in manufacturing and business service companies that offer significant opportunities for growth and productivity gains. The firm invests where it has substantial prior experience and broad operating and functional expertise that can support management teams to drive growth and improve productivity. More information about Arsenal is available at # # #

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Health, Safety and Environmental Solution 2005