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January 9, 2006
| TO: | All Archway Clients | | | | FROM:   | Ed Fruchtenbaum | | President/COO |
| 763-488-6831 | | | | RE: | Lake Capital-Archway Merchandising Client Announcement |
I want to share with you some very exciting news about corporate developments at our
Company. We announced today that Lake Capital, a leading private equity firm, has
acquired Archway Merchandising via one of its holdings, Storecast Merchandising.
First, let me assure you that the change in ownership does not affect Archway’s senior
management team, your contacts, our operating procedures or business relationships.
From these perspectives, the change in ownership is transparent. The Archway
organization and management team is moving forward under new ownership with the
same industry leading initiatives.
In a number of important ways, however, this announcement will benefit our clients.
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1.  | An equity firm with more than $800 million under management now supports Archway’s initiatives and growth strategies, enabling more rapid development of our client support initiatives.
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2.  | Together, Archway and Storecast offer the broadest Best In Class services in the industry, from large-scale installations to continuity service and replenishment.
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3.  | We now service more than 40,000 retail locations, with the ability to roll out client support initiatives across all channels of distribution.
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This is an important milestone for Archway, one that lays the foundation for our future and continuing success.
Thank you for your support.
If would like more information, please feel free to contact me.
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