PWS, Inc. to Acquire SpinCycle LLC in All-Cash Transaction


LOS ANGELES, Aug. 8, 2003 (PRIMEZONE) -- PWS, Inc. and SpinCycle LLC, two of the most widely recognized brand names in the coin laundry industry, today announced they have entered into a definitive agreement under which PWS, Inc., through its Lucky Spin Laundries LLC affiliate, will acquire SpinCycle LLC. Terms of the all-cash transaction were not disclosed. The parties expect the transaction will close by the end of September 2003, subject to the satisfaction of customary closing conditions.

Mr. Chris Lombardi, Chief Operating Officer of SpinCycle LLC, commented on the transaction, "SpinCycle's financial strength, talented employee base and strong brand name has allowed existing shareholders to realize substantial value and liquidity in this transaction. We look forward to working with such a world-class organization as PWS to continue to build value across all of our businesses."

Mr. Morton Pollack, Chairman and Chief Executive Officer of PWS, Inc., said, "We are delighted to have the opportunity to acquire the largest retail coin laundry operator in the United States. SpinCycle has demonstrated a strong track record of success and profitability. PWS has been a leader in the coin laundry industry for nearly forty years and we are pleased to continue our growth by warmly welcoming SpinCycle's management and employees."

Mr. Eric Steinberg, President of PWS, Inc., stated, "SpinCycle's management team has done an outstanding job developing their company into the premier retail coin laundry store operator. We look forward to continuing to work with Chris Lombardi, one of the founders of the company, and his team to create value for the shareholders and employees of Lucky Spin Laundries and of PWS, by enhancing the company's growth, operations or by any other appropriate means."

SpinCycle LLC, a private company headquartered in Scottsdale, Arizona, was founded in October 1995 and owns and operates the leading national chain of retail coin-operated laundries in the United States. SpinCycle LLC currently operates 172 stores nationwide, with stores located in 24 markets throughout 16 states and in Washington, D.C.

PWS, Inc. is a privately held company, headquartered in Los Angeles, California.

Founded in 1968, PWS is the leading provider of a comprehensive set of services to coin laundry store operators in the states of California and Nevada, including: the development of new stores under the trade names of Launderland, Sudz, Lucy's LaundryMart(R) and, subsequent to the closing of this transaction, SpinCycle; the brokerage of existing stores; the sale of laundry equipment and parts; and providing service, support and financing. PWS has long been the only authorized distributor in California and Nevada for the sale to commercial coin laundries of Speed Queen, the well-known equipment line owned by Alliance Laundry Systems LLC.

Credit Suisse First Boston LLC acted as exclusive financial advisor to SpinCycle LLC and Barman Capital LLC acted as exclusive financial advisor to PWS, Inc. in this transaction.



            

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