Portfolio (Exited)

Advanced Lighting Technologies, Inc.

Saratoga acquired Advanced Lighting Technologies, Inc. by co-sponsoring a Chapter 11 bankruptcy reorganization plan with the Company management, including its founder. Advanced Lighting is a world leader in designing, manufacturing and marketing of metal halide and other lighting products, including materials, system components, systems and production equipment. The business was previously publicly-traded on the Nasdaq exchange. Originally spun-off from General Electric, Advanced Lighting is a vertically integrated industry leader with a proven ability to continually innovate and market new applications of metal halide products. The business has three primary operating units: Venture Lighting International, a leading manufacturer of metal halide lamps and ballasts; APL Engineered Materials, the world’s leader with approximately a 95% share in key dose materials for metal halide and high-pressure sodium lighting products; and Deposition Sciences, Inc., developer and manufacturer of advanced optical thin film coatings and deposition coating machinery for industrial and military applications including specialty coatings for high energy efficient lamps.

Datavantage Corporation

Saratoga Partners acquired a controlling equity position in Datavantage Corporation, a leading developer and integrator of in-store information system software for specialty retailers. The Company’s two main software products are Store 21®, a point-of-sale transaction system, and XBR TrackTM, a business intelligence and fraud detection system.

Based in Cleveland, Ohio, Datavantage is one of the largest and fastest growing companies in its industry, achieving dramatic growth in Net Sales and EBITDA over the last three years through the wide acceptance of Store 21® in the marketplace and the successful rollout of XBR TrackTM. Store 21® is currently used by approximately 50 retail chains representing 7,500 store and 12,000 POS terminals, while XBR TrackTM is used by approximately 50 retailers processing data from over 20,000 stores.

Datavantage seeks to grow both organically and through strategic acquisitions. Working with Saratoga, the Company is focusing on an aggressive expansion of Store 21® and XBR TrackTM, the development of technological innovations which will enable it to meet the market demands of the future, and the identification of strategic growth partners.

ELP

Emeritus Corporation

Emeritus Corporation is one of the largest owners and operators of assisted living facilities in the United States, with 135 managed properties in 29 states. The assisted living industry provides living facilities for elderly people who require assistance with such activities of daily living as bathing, dressing, and taking medication, but who do not require the more expensive attention of a nursing home or hospital.

Emeritus was founded in 1993 by Dan Baty, the former chairman of The Hillhaven Company, a large nursing home operator. From its inception, Emeritus embarked upon a rapid growth path, acquiring and building over 10,000 assisted living apartments. At the present time, its focus has shifted to growing occupancy rates and further increasing operating margins.

At year end 1999, Saratoga Partners made a substantial preferred equity investment in Emeritus, with the result that in Saratoga’s being the largest single shareholder on a fully diluted basis in this publicly traded company.

EUR Systems, Inc.

EUR Systems, Inc. is a leading services provider of outsourced billing and customer care solutions to the telecommunications industry, offering a complete back office which effectively frees the client to focus on its own core business.

The highly regulated and competitive nature of the telecom industry created an increasingly complicated billing process, which spurred demand for EUR’s expertise in such areas as inter-carrier access billing (in which EUR enjoys a particularly strong market position), invoice production and distribution, management reporting, customer maintenance and sales support. EUR currently processes in excess of 300 million messages per month for such customers as AT&T, Global One, IBM Global Services, Time Warner Telecom and more than 30 independent local exchange carriers.

Saratoga’s role in effecting EUR’s transition from a family- to management-owned company has not only fostered a greater entrepreneurial environment, it has also provided the managerial guidance and financial backing necessary to ensure the Company’s growth through organic expansion, resource redeployment, and strategic alliances. Particularly substantial growth opportunities include domestic and international carrier access billing and convergent billing solutions for its telco customers.

Hawaiian Wireless, Inc.

Saratoga committed $5 million of equity as lead investor in Hawaiian Wireless, Inc., a newly formed cellular telephone company. Hawaiian Wireless utilizes cellular technology over the specialized mobile radio spectrum to deliver wireless telephone service throughout the Hawaiian islands. Operations were established on the island of Oahu, one of the most attractive cellular phone markets in the United States. Hawaiian Wireless is targeting business customers by offering superior coverage in its market, local customer service, innovative rate plans, digital technology, and the ability to roam throughout North America.

Hawaiian Wireless was organized by the management of Atlantic Cellular Company, L.P., a Saratoga Partners III, L.P., portfolio company, and Atlantic’s owners with $20 million of committed cash equity and $8.5 million of licenses and other assets.

J&W Scientific Incorporated

J&W Scientific Incorporated develops, manufactures, and markets capillary columns, a key consumable used in the separation and identification of chemical compounds in certain applications of gas chromatography. J&W is the world’s largest supplier of fused silica capillary columns, with a market share more than double that of its nearest rival.

Saratoga teamed up with J&W’s existing management and Dr. Walter Jennings, one of the Company’s founders, to acquire J&W from Fisons plc., the U.K. pharmaceutical and instrumentation concern, for $35 million. J&W’s strategy is to optimize internal operating earnings, increase international market share, and actively pursue acquisition opportunities to further enhance its product line and profitability.

Scovill Fasteners Inc.

Saratoga Partners and Company management acquired Scovill Fasteners Inc., a leading manufacturer of apparel and specialty industrial fasteners with approximately $96 million in annual sales.

Saratoga has overseen the Company’s transition to offshore sourcing in order to match movement of customers to Asia. Capitalizing on its acknowledged reputation as a provider of exceptionally high quality products, and backed by a superior service network, Saratoga has worked with management to guide Scovill to further enhance the Company’s position domestically and internationally as the leading competitor in its markets.

USI Insurance Services Corp.

USI Insurance Services Corp. was formed by Saratoga Partners and Bernard Mizel, a member of Saratoga’s Executive Program, to serve as an acquisition vehicle within the commercial insurance brokerage and services industry. Prior to teaming up with Saratoga Partners, Mr. Mizel had successfully completed two consolidation plays in the commercial insurance brokerage industry, American Business Insurance, Inc. and Albert M. Bender Company.

Expert management built USI from a start-up operation in June 1994 to its current status as the 6th largest U.S. commercial insurance brokerage. The Company has consummated more than 100 acquisitions for an aggregate purchase price in excess of $400 million and attained annualized revenues in excess of $350 million.

Sericol, Inc.

Saratoga teamed up with the existing management to acquire Sericol from British Petroleum. Sericol is the world market and technology leader in screen printing inks and related pre-press products with approximately $200 million in annual sales. The Company has a leading market position in UV inks for graphic (point of purchase, decals and posters) and industrial (CD and DVD manufacturing, specialty packaging) printing. The Company’s advantage in these markets has been gained through superior product quality, technological innovation, and customized service.

Sericol has a strong global presence with direct sales in 18 countries and distribution to another 70. The Company has approximately 1,200 employees located around the world with manufacturing facilities in Kansas City as well as in the UK, Australia, Brazil, India and China.

NAT, Inc.

NAT provides transaction processing software and services for administering warranty and service contracts for consumer products. Clients that use the company’s proprietary systems are leading providers of automotive, consumer retail, home warranty and service plans, and include three of the top 10 insurance companies, one of the top five automotive manufacturers and two major auto-glass service providers. Currently, NAT’s business is focused on automotive and retail extended warranty programs.

NAT’s business plan targets the automotive sector through factory warranty and extended warranty programs, the retail sector through extended service plans, and the real estate/insurance sector through home warranty programs. NAT differentiates itself as the only systems vendor in its automotive niche that has developed and installed a workflow solution for the complete Extended Warranty Contract (EWC) transaction from origination at the franchised auto dealer through settlement with the insurance company.

Data Return, LLC

Saratoga acquired Data Return, pursuant to Section 363 of the bankruptcy code out of the Divine Inc. estate. Saratoga is backing the existing management team, including the founder of Data Return. The business, formed in 1997, has since grown to over $50 million in revenue and is recognized as an industry leader with many high profile customer relationships. The business was previously acquired by Divine in January 2002 and pulled into bankruptcy when parent company Divine filed for Chapter 11 protection in February 2003.

Data Return provides outsourcing services to integrate, host, manage and support all of the network, hardware and software infrastructure required to operate external-facing website applications for corporations. Distributed end users access these applications located in Data Return’s centralized data centers from remote locations over the Internet. To manage, support and deliver applications to distributed remote end users, Data Return manages, combines and integrates a broad range of both technological infrastructure components and IT outsourcing services. In particular, Data Return maintains specific teams of certified IT professionals that are responsible for 24/7 monitoring, support, maintenance and operations of customers’ applications and all of the various supporting infrastructure components. Data Return has a large base of recurring revenue from over 200 enterprise customers including Match.com (subsidiary of USA Interactive), H&R Block, BMW, Hewlett-Packard, and GMAC.

The Data Return investment fits well with Saratoga’s investment focus on the information services sector. Other attractive investment characteristics include a large base of recurring revenue, strong profitability, long standing customer relationships, industry leadership and opportunity for substantial growth.