Bids Due January 27th in Expedited Chapter 11 Section 363 Sale

DALLAS (Dec. 29, 2009) - Barrier Advisors, a nationally recognized middle-market restructuring, operations improvement and special situations investment banking firm announced that it has been retained to conduct the sale of Ames Holding Corp. and its U.S. Subsidiaries ("Ames"). Ames is the leading designer, manufacturer, marketer and distributor of automatic taping and finishing ("ATF") tools in the United States. Barrier Advisors is in charge of running an expedited sale process, with qualified bids due on or before Jan. 27, 2010, subject to court approval.

Based in Duluth, Ga., Ames is the only ATF company that has effectively employed a comprehensive, sustainable business model including the rental and sale of ATF tools, coupled with a variety of drywall related merchandise, through a nationwide network of 72 stores and 126 franchisees. The Company maintains a rental fleet of over 191,000 tools through two service centers, which also offer in-house tool servicing to the sold tools market and distribution of Ames private label merchandise.

Serving large and small independent finishing contractors in the residential and commercial construction markets, Ames' ATF tools enable contractors to finish drywall joints three to four times faster and with more uniform results than hand finishing methods, resulting in significant cost and quality advantages.

According to Peter Alexander, Chief Restructuring Officer of Ames, despite the company's leading market position, the demand for ATF products directly corresponds to the health of the construction industry. "While Ames benefited from an aggressive growth strategy during the building boom earlier in this decade, the widespread and dramatic downturn in the residential and commercial markets negatively affected the company," said Alexander. The resulting decrease in product demand and revenue caused the company to file for Chapter 11 bankruptcy protection on December 14, 2009.

Hired by a special committee of the Ames' board, Barrier Advisors is managing the sale of the company during the bankruptcy proceedings. Subject to Section 363 rules, the sale process is open to overbids. A stalking horse bidder has already been qualified, and a purchase agreement has been signed, subject to bankruptcy court approval. Barrier is seeking bids from other interested parties that exceed the stalking horse bid.

According to Kent Laber, senior managing director of Barrier Advisors, competing bids must exceed the stalking horse bid by a $500,000 breakup fee in addition to expenses, plus a minimum initial overbid of $250,000. The stalking horse bid consists of new term loans totaling $18 million, plus 21.5 percent of the go-forward ownership of the company - the proceeds of which will go to the Ames' prepetition lenders.

"This sale represents a rare opportunity to acquire a niche category leader at the cyclical trough of the residential and commercial construction market," said Laber. "Any investor with either a background or interest in building products should be looking at this deal."

"Given the strength of Ames' brand and market share, we expect considerable interest by both strategic and financial buyers," said David Prieto, vice president of Barrier Advisors. "Potential bidders must move quickly, in accordance with the bidding procedures and January deadlines."

"Proceeds from the sale will allow us to recapitalize our balance sheet while substantially reducing our liabilities," said Drew Garner, Ames' Chief Financial Officer. "Proper handling of this transaction is critical to our ongoing success. Barrier Advisors' experience in 363 sales and their ability to complete special situations transactions under expedited time frames gave us confidence that the job would be done right."

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