Fifth investment in last 10 months by Midwest-focused venture capital fund

Chicago, August 29, 2005 – Hopewell Ventures, a $110 million venture capital fund licensed by the U.S. Small Business Administration as a Small Business Investment Company (SBIC), announced today that it, along with a group of financial investors and its existing senior management team, has purchased Diversified Graphics, Inc. (DGI), a family-owned Minneapolis-based print solutions and social stationery products company. Hopewell invested $2.0 million as part of an extended B round.

DGI has three lines of business: social stationery, commercial printing, and distribution and fulfillment. The social stationery sells a full line of invitations, thank-you notes, blank cards and other social stationery under five brand names to both large retailers (Target, Barnes & Noble, etc.) and independent boutiques. In connection with this transaction, DGI acquired the assets of Mara-Mi, Inc., another Minneapolis social stationery company, and combined these operations with Paper Prince. The commercial printing division operates a number of large eight color sheet-fed presses, providing standard commercial printing services to its customers. Lastly, the fulfillment operation, known as Phoenix, collates, packages, and mails printed materials.

“We plan to grow each of Diversified Graphics’ businesses units and with their strong management team and new capitalization structure, take advantage of more strategic opportunities, organically and through additional acquisitions,” said Hopewell Ventures Managing Partner William P. Sutter, Jr.

“Hopewell is a good fit for our size of business and we are excited to have the strategic leadership of the Hopewell team,” said Scott Morrow, Chief Executive Officer, Diversified Graphics, Inc. “We expect and plan to significantly grow each of our business units, especially in our stationary business by looking for opportunities in complimentary products, like the fast-growing craft and hobby industries.”

DGI has been family-owned since its founding by Bob Gacek in 1949. It has grown from approximately $1 million in annual revenues to more than $55 million over the past 50 years, and grew its business from only a commercial printer to a printing and social stationery company.

This is Hopewell’s fifth portfolio investment in Midwestern companies in the past 10 months, which include: iTRACS, a leading provider of intelligent physical layer network infrastructure management solutions; TLContact, which licenses a private patient Web page service, called CarePages, to the nation’s leading healthcare institutions; CSMG, a sports talent, marketing and management firm that represents high-profile athletes such as Dwyane Wade of the Miami Heat and Donovan McNabb of the Philadelphia Eagles; and Compass Care, Inc., a software provider that helps the outpatient healthcare industry better manage costs and the delivery of treatment through its key software product, MedTrak.