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March 2011

Penfund announces successful exit from its investment in Choice Environmental Services, Inc.

TORONTO, Ontario (March 2, 2011) – Penfund, an independent provider of junior capital to middle market companies, announced today the successful exit from its investment in Choice Environmental Services Inc. (“Choice” or the “Company”), one of the largest independent waste collectors in the southeastern United States. The exit resulted from the sale of Choice to Swisher Hygiene Inc. for an enterprise value of approximately $100 million. Swisher’s Chairman, H. Wayne Huizenga, previously founded Waste Management Inc., and was instrumental in growing Republic Services Inc. These organizations are today the two largest companies in the North American solid waste management industry.

The Choice investment was the result of Penfund’s focused initiative in the waste management sector. Adam Breslin, a Partner at Penfund commented, “Our experience with Choice illustrates two of the things we like best about the solid waste sector: the tremendous growth opportunities available to entrepreneurial operators and the potential for significant and rapid value creation through exit to strategic buyers.” Justin Dumitrescu, a Senior Associate at Penfund added, “Swisher’s acquisition is a strong vote of confidence in Choice and confirms our judgment that the Company and its management team are among the best in the industry. We wish the Choice team continued success in the future.”

Penfund began focusing on the waste management industry more than two years ago and devoted significant resources to understanding it, developing a detailed industry-specific investment thesis and building a network of proprietary industry relationships. “It’s a time consuming process, but the results definitely justify the effort,” said Mr. Breslin. Mr. Dumitrescu added, “We remain very excited about the investment potential of the waste management sector and are actively seeking additional investment opportunities.”

In addition to its ongoing initiative in the waste management sector, Penfund is also actively targeting the post-secondary education, restaurant, pet products and services and transportation and logistics sectors.”

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About Penfund

Penfund is a leading provider of junior capital to middle market companies throughout North America. The firm is owned by its management team and is currently investing its most recently established fund, Penfund Capital Fund VI.  Penfund manages funds sourced from pension funds, insurance companies, banks, family offices and high net worth individuals and has invested more than $3 billion in over 225 companies since its establishment in 1979. Assets and capital under management currently exceed $1.6 billion.

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