Clearview Capital, LLC

Clearview Capital Partners with Management
to Acquire Hillsdale House, Ltd. And Hillsdale Furniture,LLC
October 15, 2003

Clearview Capital, LLC of Old Greenwich, CT today announced that on October 15, Clearview and the manager-owners of Hillsdale House, Ltd., based in Louisville, KY and Hillstreet Furniture, LLC, based in Chicago, IL, concluded a $37,000,000 transaction to create Hillsdale Furniture, LLC. In addition to providing an infusion of capital to support growth that has been in excess of 50% over the past twelve months, the transaction will facilitate the merger of Hillsdale and Hillstreet into a new entity to be called Hillsdale Furniture, LLC. Hillsdale and Hillstreet have had a cooperative arrangement since 1997 but will now operate under common ownership without duplication of activity.

The current management of Hillsdale and Hillstreet will retain day-to-day management control and have operational autonomy while maintaining a substantial equity stake in the recapitalized entity.

Hillsdale Furniture is a designer and importer of bedroom, dining room, occasional and accent furniture sold through mail order, furniture, mattress and specialty retailers nationwide. The company is well known for its innovative designs and its ability to service its customers by shipping containers directly from Asia, by supplying merchandise from its network of domestic warehouses, or by drop shipping individual items directly to consumers

“We believe we have invested in a company that is perfectly positioned to capitalize on the rapid rise of imports of quality furniture from Asia into the U.S. market,” said Calvin Neider, co-Managing Partner of Clearview Capital. “By facilitating the combination of these two fine companies, we have created a company with a broad product line, deep management team and unparalleled design and sourcing capability.

“Clearview Capital pursued an investment in Hillsdale House and Hillstreet Furniture because it fits our model so well: superior management executing a unique strategy,” said James G. Andersen, co-Managing Partner of Clearview Capital. “Hillsdale has a very talented management team and we intend to provide them the capital they need to continue to execute the strategy that has served them so well thus far.”

The New York office of LaSalle Business Credit, Inc. provided senior debt in the transaction. Mezzanine capital was provided by Brookside Pecks Capital Partners, L.P. and Ironbridge Mezzanine Fund.