New York, NY (November 15, 2005) - KPS Special Situations Funds (“KPS”) today announced that Genesis Worldwide II, Inc. (“Genesis II”), a company it jointly owns with Pegasus Partners II, L.P., has sold its GFG subsidiary to Mitsubishi–Hitachi Metals Machinery, Inc. (“MH”), a joint venture of Mitsubishi Heavy Industries, Ltd. and Hitachi, Ltd. GFG is the world’s leading designer and manufacturer of roll coating equipment and lines and electrostatic oilers under the Peabody name.

Walter Stasik, CEO of Genesis II, said, “This transaction is a win-win for Genesis II and MH. We are pleased that GFG is being transferred to an owner best positioned to capitalize on its strengths worldwide. We take great pride in having built GFG into such a successful company. We thank KPS for introducing Genesis II to MH through its relationship with Mitsubishi and for its leading role in completing the transaction.”

“We congratulate Walter Stasik and the Genesis II senior management team on the remarkable turnaround of GFG and on its transformation into a truly global business,” said Michael Psaros, a Managing Principal of KPS. “This transaction is a demonstration of the KPS-Mitsubishi partnership at work. Mitsubishi International Corp. (“MIC”) is an investor in and key strategic partner of KPS. We thank MIC for introducing Genesis II to MH and for the critical role it played helping us complete this complex cross-border transaction. In many respects, the success of this transaction came down to the trust and personal relationships between the Principals of KPS and MIC. We look forward to many similar opportunities to collaborate with MIC in the future.”

Tak Ishikawa, Senior Vice President of Mitsubishi International Corp., said, “Consummation of this complex transaction reflects the cooperative spirit that has evolved between the Principals of KPS and Mitsubishi spanning nine years.”