Broadspire News

LOS ANGELES, CA. (March 16, 2004) - Platinum Equity, LLC, announced today that its portfolio company Broadspire Services Inc. has completed acquisition of the third-party claims administration assets of Cunningham Lindsey U.S., Inc., a subsidiary of Lindsey Morden Group Inc.

The transaction closed on Monday, one week after the parties reached a definitive agreement. Platinum was advised on the deal by Cochran Caronia & Co. The investment banking firm has been retained by Platinum to identify potential acquisition opportunities in the insurance services sector.

The acquired businesses are RSKCo Services, Inc. and Cunningham Lindsey Claims Management, Inc. (CMI), which comprise the third-party claims administration business of Cunningham Lindsey U.S. Platinum immediately launched a transition program to integrate the assets of RSKCo and CMI into Broadspire.

"This will be a strategic integration that will position Broadspire as one of the largest independent TPAs in the country," said Steve Zollo, senior vice president of portfolio operations for Platinum. "Our goal is to create a market leader that provides customers with unparalleled expertise, the most effective absence management solutions and the highest level of service in the industry."

Together, RSKCo and CMI have more than 600 employees and $40 million in annual revenue. With those additions, Broadspire increases in size to 3,500 employees and more than $350 million in revenue.

"This is another step in building Broadspire into a unique company that provides extraordinary value and ROI to its customers," said Dennis Replogle, president and chief executive officer of Broadspire. "The abundance of talent and expanded resources that we now have, combined with Platinum's operational expertise and financial strength, create a powerful combination that is unmatched in our market place."

A transition team led by Platinum has already been deployed to ensure that the integration is seamless to RSKCo, CMI and existing Broadspire customers.

"Platinum's transition process is customer focused and designed to ensure no disruption in service or service quality," Mr. Zollo said. "Customers are one of the most valuable assets we acquire in a transaction, and preserving those relationships throughout the transition is our number-one priority."

About Broadspire

Broadspire ( www.choosebroadspire.com ) offers the broadest array of absence management services in the industry. Those services include risk and safety consulting; workers' compensation, auto liability, general liability, and short- and long-term disability claim management services; Family Medical Leave Act administration; and total disability management programs. Broadspire creates customized solutions designed to increase employee productivity and contain costs.

About Platinum Equity

Platinum Equity ( www.platinumequity.com ) is a global M&A&O SM  firm specialized in the merger, acquisition and operation of mission-critical services and solutions companies. Since its founding in 1995, Platinum Equity has completed over 40 transactions, building a portfolio of 18 market-leading companies with 32,000+ employees, more than 600,000 customer sites and revenues of $5.5 billion. In 2003 Platinum Equity was named the 34th largest private company in the United States by  Forbes magazine.