Bunker Hill Capital Portfolio Company Specialty Coating Systems, Inc. Acquires Parylene Japan K. K.

Posted on 10/9/2007 in Announcements

Specialty Coating Systems, Inc. (“SCS”), a portfolio company of Bunker Hill Capital, L.P., announced that it has acquired 100% of the stock of Parylene Japan K.K. (“PJKK”). The transaction included PJKK’s real estate holdings. PJKK was originally formed as a joint venture between Three Bond Co., Ltd. of Japan and SCS in order to provide parylene coating services within Japan. SCS has acquired complete control of PJKK through the recently completed purchase of Three Bond’s interest in the joint venture.

PJKK will operate as a wholly owned subsidiary of SCS under the leadership of Eddie Narita, President of PJKK, who will report to Terry Bush, President of SCS. According to Mr. Bush, “Acquiring a controlling interest in PJKK represents a significant strategic opportunity for SCS. We believe that substantial growth prospects exist within Japan and the Asia Pacific region for the application of parylene coating. SCS is also in the process of expanding its existing operation in Singapore.”

Mr. Bush’s sentiments were echoed by Mark DeBlois, a Managing Partner of Bunker Hill Capital and Chairman of the Board of SCS. “This acquisition represents a key foothold for SCS in the Asia Pacific markets and demonstrates our confidence in both the medical and non-medical growth prospects for our Company.”

About Bunker Hill Capital, L.P.

Bunker Hill Capital is a private equity firm that makes investments in lower middle market companies with enterprise values up to $150 million. The principals of Bunker Hill Capital have together invested over $400 million in 28 transactions and target opportunities across four industry sectors, including industrial products, business services, consumer products and specialty retail. In addition to SCS, Bunker Hill Capital’s portfolio company investments include California Family Fitness, the leading owner and operator of fitness centers in the greater Sacramento, CA area; Papa Gino’s/D’Angelo, a dominant quick-service restaurant operator in New England; and Smith & Wollensky, a national, high-end steakhouse chain. For more information on Bunker Hill Capital, please go to www.bunkerhillcapital.com.

About Specialty Coating Systems, Inc.

Headquartered in Indianapolis, Indiana, SCS is the worldwide leader in Parylene conformal coating services, systems and materials. SCS has more than 35 years of application experience and expertise in the medical, electronics, automotive and military industries. With nine coating facilities throughout the Americas, Europe and Asia, SCS leverages its worldwide Parylene coating resources in order to meet its customers’ needs on a global basis. The company also offers industry-leading liquid coating systems, including spray coating, spin coating and dip coating systems, UV and IR-Thermal cure ovens, and ionic contamination test systems. SCS is a portfolio company of Bunker Hill Capital. For more information on SCS, please go to www.scscoatings.com.