Behrman Capital Acquires Majority Interest in The Management Network Group, Inc.

Investment in Telecommunications Consulting Firm
First For Behrman Capital’s New $518 Million Buyout Fund

February 12, 1998

Behrman Capital, a private investment firm focused on emerging growth companies, today announced that it has become the majority shareholder of The Management Network Group (TMNG), a multi-national management consulting firm based in Kansas City that specializes in leading the development and implementation of strategy and operations for competitive telecommunications companies.

Behrman Capital has gained a controlling interest in privately held TMNG in a leveraged recapitalization with aggregate financing of $64 million. A portion of the proceeds from the transaction will be used by TMNG to fund internal growth and possible acquisitions.

This transaction marks the first equity investment for Behrman Capital II L.P., which, as previously announced, closed in January 1998 with total committed capital of $518 million.

Grant G. Behrman, a Managing Partner of Behrman Capital stated, “We are extremely pleased that our first investment from our new buyout fund is in TMNG. This fast-growing firm is led by a strong, experienced management team which has carved out a dominant niche in the rapidly expanding and highly fragmented competitive telecommunications consulting marketplace. Indeed, at a time of dramatic change and explosive growth in the global telecommunications industry, TMNG’s services are in great demand and the firm’s prospects for continued growth are strong.”

The Management Network Group, which was founded in 1989, serves competitive carriers in all segments of the global telecommunications industry, as well as the technology, venture and merchant banking companies that support the industry. TMNG’s core services included billing operations and revenue assurance, competitive business system design, and system capability assessments. TMNG, headquartered in Kansas City, Kansas, also has offices in New York and San Francisco. The firm utilizes the services of approximately 130 consultants worldwide.

“Behrman Capital is the ideal partner for TMNG – it is committed to TMNG’s continued growth, both in the United States and in international markets, and it has unique expertise and resources in the management consulting and information technology industries,” said Richard P. Nespola, President and Chief Executive Officer of TMNG. “We look forward to working closely with Behrman Capital as we continue to focus on serving the needs of our existing clients and pursuing new business opportunities.”

Behrman Capital invests in management buyouts of growth companies focused on the information technology, health care services and outsourced manufacturing industries, as well as special situations. The firm also provides expansion capital to emerging growth companies, principally in the high technology and health care services industry.

Based in New York City and San Francisco, Behrman Capital was founded in 1991 by Darryl G. and Grant G. Behrman. The firm currently has a combined capital based exceeding $640 million.