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Stacy Berns/Michael McMullan
Berns Communications Group
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FOR IMMEDIATE RELEASE

Leading Merchandising Services Firms, Storecast and Archway Merchandising,
Announce Merger

Company to Serve More Than 40,000 Retail Locations in Mass Merchant,
Food and Drug, Dollar Store and Specialty Channels

MALVERN, PA. and ROGERS, MINN. / January 9, 2006 /Businesswire/ – Storecast Holdings Inc., a leading provider of merchandising services to major food and drug retailers and manufacturers, today announced that it has acquired the Archway Merchandising Services business from AHL Services Inc.  Archway Merchandising Services is a prominent provider of merchandising services to major consumer product manufacturers in the mass merchant, dollar store and other retail channels. 

The combined entity will be a significant industry force, with more than 10,000 employee merchandisers covering more than 40,000 retail locations in the mass merchant, food and drug, dollar store and specialty channels.  Together, Storecast and Archway Merchandising have the operating scale and breadth of service to satisfy the merchandising needs of the largest retailers and manufacturers on a nationwide basis.  Their range of services includes continuity merchandising services; resets, remodels and new store set-ups; point-of-purchase installation; retail intelligence and information; and category management services.

Storecast and Archway Merchandising will continue to be managed by their respective executive teams, under the leadership of Vince Willis, chief executive officer of Storecast Holdings.  Ed Fruchtenbaum will continue to serve as president and chief operating officer of Archway Merchandising Services.  All other senior management and staff remain in place at each of the companies, creating one of the most experienced and broad-based management teams in the industry. 

“The merger is consistent with Storecast’s strategic vision: to create an integrated merchandising services organization with the capability to offer customers consistent, high quality, cost-effective retail solutions anywhere in the U.S.,” explained Vince Willis, chief executive officer of Storecast. “Together, Archway Merchandising and Storecast have the expertise and reach to offer current and prospective clients expanded retail solutions for all of their in-store merchandising needs on a national basis across all channels of distribution.  We are also excited about the opportunity to build on Archway Merchandising’s proprietary e-merchandising platform, which affords customers the convenience, speed and efficiency of Internet-enabled services,” continued Willis.   

The privately owned Storecast Holdings is backed by a significant capital commitment from Lake Capital, a private equity firm with more than $1.3 billion in capital under management that invests exclusively in growing services business.  In July 2004, Lake Capital partnered with Vince Willis to form Storecast Holdings, Inc, which acquired Storecast Merchandising Corporation. 

“Our partnership with Storecast and Lake Capital enhances our capabilities to serve a broad range of customers nationwide and will enable Archway Merchandising to accelerate our industry-leading position in technology, real time reporting and shelf level retail intelligence,” noted Ed Fruchtenbaum, president and chief operating officer of Archway Merchandising.

Archway Merchandising and its former parent company, AHL Services Inc., have entered into a joint service agreement to ensure that their joint customers continue to receive uninterrupted and exceptional service.  AHL Services will continue to own and operate a related business, Archway Marketing Services.

About Storecast.  Storecast deploys more than 3,000 core employee merchandisers on a national basis to provide innovative merchandising services, including continuity merchandising; reset, new store and remodel services; and category management services for more than 300 leading retailers and consumer goods manufacturers.  Founded in 1943, Storecast partnered with Lake Capital in 2004 to continue building a leading national merchandising services firm across all channels of distribution.  More information about Storecast is available at www.storecast.com.

About Archway Merchandising Services.  Archway Merchandising Services is the preferred provider of retail marketing solutions for more than 200 clients, including manufacturers and retailers. With more than 7,200 merchandisers covering more than 40,000 retail units nationally, Archway Merchandising has the capability to provide an integrated retail marketing solution in any retail outlet quickly, cost effectively and completely. More information about Archway Merchandising Services is available at www.archwaymerchandising.com.

About Lake Capital.  Lake Capital is a private equity firm that focuses on investments in service-based enterprises across various industries. The firm is currently managing more than $1.3 billion of capital and typically seeks to invest $50-$75 million of equity in each of its portfolio initiatives to build leading services companies through organic and acquisition-enhanced growth.  More information about Lake Capital is available at www.lakecapital.com.