We believe in the following investment principles:

• We invest in people we trust and strive to treat management, deal sources, advisors and partners with respect and complete honesty at all times.

• We are attracted to consistent, profitable performance with achievable growth objectives and improvement opportunities.

• We do not speculate on technology or products in which we are not intimately familiar.

• We look for leading market positions, high barriers to entry and high profit margins.

• We strive to understand clearly the risks of competition, foreign sourcing, cyclicality and customer concentration.

• Companies that perform will pay down debt and can be recapitalized at a later date if further leverage is desired.