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FOR MORE
INFORMATION ON
THIS TRANSACTION,
CONTACT:
 

James M. Frommelt
jfrommelt@agio.com
T 612 339 0500

Steven R. Tipler
stipler@agio.com
T 612 339 0500



Goldsmith Agio Helms Announces the Sale of its Client
MicroDental Laboratories, a Portfolio Company of Riverside Partners, to DTI Dental Technologies, a Portfolio Company of HEALTHPOINTCAPITAL PARTNERS

MINNEAPOLIS, MN – 
March 12, 2007: Goldsmith Agio Helms is pleased to announce the sale of its client, MicroDental Laboratories (“MicroDental” or the “Company”), a portfolio company of Boston-based Riverside Partners (“Riverside Partners”), to DTI Dental Technologies, Inc. (“DTI”), a portfolio company of HEALTHPOINTCAPITAL PARTNERS II, L.P. (“HEALTHPOINTCA-PITAL”). MicroDental is the premier laboratory for cosmetic dentistry in the United States.

TRANSACTION HIGHLIGHTS
Founded in 1964, MicroDental has developed strong relationships with the nation’s most prominent cosmetic dentists and is renowned for supplying award-winning, custom-manufactured restorative, reconstructive and cosmetic dental products such as crowns, bridges, veneers, implants, and dentures.  MicroDental operates from three state-of-the-art facilities in Dublin, California, Salt Lake City, Utah, and Las Vegas, Nevada and maintains a laboratory at The Las Vegas Institute for Advanced Dental Studies in Las Vegas, Nevada.

Multiple potential acquirers expressed strong interest in MicroDental, which has built premier brands such as Micro Advanced Ceramics and MACVENEERS, an industry-leading line of highly aesthetic veneers.  DTI, which operates 16 dental laboratories in Canada and the United States, was chosen in large part because of its experience in the dental laboratory industry and its shared vision of the future of cosmetic dentistry.

“The dental market represents one of the fastest growing sectors in the medical technology industry,” stated John H. Foster, Chairman of the Board of DTI and Chairman and Managing Director of HealthpointCapital.  “The dental laboratory industry is a primary beneficiary of the public’s increasing interest in and willingness to pay for improved dental function and aesthetics.  We were particularly attracted to MicroDental because of its strong brand, the depth of its management team and staff, and the relationships it has built through unparalleled service to cosmetically-oriented dentists.  The combination of Micro and DTI will create significant value because of its increased ability to utilize the latest in technology and provide continuing education to its technicians and dentists, while maintaining the service levels our clients expect.” 

"We are proud to have partnered with the management team and technical staff at MicroDental and are excited about the prospects for the combined MicroDental and DTI operations," said Steven F. Kaplan, Chairman of the Board of MicroDental and a General Partner with Riverside Partners LLC.  He added “under Riverside’s ownership the Company grew organically through the introduction of new innovative products as well as through the add-on acquisitions of Sunrise Dental Ceramics in 2002 and Becden Dental Laboratories in 2006.”

Fred Walke, President of MicroDental, stated, “Our management team is excited about the opportunity to join with DTI.  As the third largest company in the industry, and the leading provider to the cosmetic dentistry market, we will be able to bring even more value to our customers.”

James M. Frommelt, a managing director at Goldsmith Agio Helms, commented, “The acquisition of MicroDental is another example of Goldsmith Agio Helms’ growing healthcare practice.  Goldsmith Agio Helms continues to build on its ideal combination of healthcare experience and deal-making expertise.”

“DTI’s acquisition of MicroDental instantly transforms DTI into the premier player in cosmetic dentistry,” said Steven R. Tipler, a vice president at Goldsmith Agio Helms.  “MicroDental features a very talented management team and provides an extremely attractive platform for future growth.  We firmly believe this will be an outstanding business combination.”

THE COMPANY
MicroDental Laboratories
(www.microdental.com) is the world’s largest and most advanced cosmetic dental laboratory, setting the industry standard for innovation and quality for more than 40 years.  MicroDental works closely with leading manufacturers, cosmetic dentists and professional organizations to help develop new materials, dental procedures and meaningful continuing educational opportunities for dental industry professionals.  The company holds numerous patents, and many of the procedures MicroDental has developed have become industry best practices.  To further focus its efforts on the rapidly growing advanced dental aesthetics segment of cosmetic dentistry, MicroDental Laboratories created the Micro Advanced Cosmetics (MAC) division in 1997.  MAC team members are the most highly trained technicians in the industry, using the most advanced pressed ceramic materials and the most sophisticated CAD/CAM and color matching technology available today to create MACVENEERS – the highest quality and the most specified veneer brand in the industry.  For more information, please visit www.macveneers.com.


THE BUYER
DTI Dental Technologies Inc.
(www.dtidental.com), headquartered in Vancouver, British Columbia, custom designs and fabricates crowns, bridges, dentures, cosmetic appliances and orthodontic appliances for its customers, dentists serving patients in need of restorative and cosmetic dentistry. DTI was founded in 1997 and has grown into one of the largest dental laboratory companies in the world with over 400 employees and a network of 16 labs in Canada and the United States. Consistency, quality, and communication are the cornerstones of success for each of DTI’s labs and enable DTI to deliver “Peace of Mind” to its clientele.  DTI is a portfolio company of HEALTHPOINTCAPITAL PARTNERS II, L.P. (www.healthpointcapital.com ), a values-driven, research-based private equity firm exclusively focused on the orthopedic and dental device businesses. HEALTHPOINTCAPITAL has $600 million of institutional capital under management.

THE SELLER

Founded in 1989, Riverside Partners (www.riversidepartners.com) is a middle market private equity firm currently investing Riverside Fund III, L.P.  The fund focuses on growth oriented companies primarily in the healthcare and technology industries.  Riverside is particularly experienced at partnering with founders, owners and management teams and it brings substantial domain expertise and operating experience to its portfolio companies. The partners at Riverside have managed more than $500 million in investments in over 50 companies.  Riverside is currently focused on companies with revenues between $20 - 200 million and with $5 - 25 million of EBITDA.

ABOUT GOLDSMITH AGIO HELMS
Goldsmith Agio Helms (www.agio.com) is one of the nation's leading independent investment banking firms providing sophisticated corporate finance advisory services  to middle-market businesses.  The firm's services include mergers and acquisitions, private placements of debt and equity, distressed advisory and restructuring, and financial advisory and opinion services.  The firm operates internationally from its offices in Minneapolis, New York, Chicago, Los Angeles, and London.

If you would like more information about this transaction, contact  James M. Frommelt (jfrommelt@agio.com) or Steven R. Tipler (stipler@agio.com) at 612-339-0500.


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