Houston, Texas

The Catalyst Group, Inc. is pleased to announce the closing of Catalyst Capital Partners III, its newest equity fund, with total capital commitments of $37 million. The combination of Catalyst Capital Partners III and our existing mezzanine funds gives Catalyst access to $125 million of committed capital for investment in manufacturing, distribution and service companies located predominately in the southwestern U.S.

The Catalyst Group specializes in middle market equity and mezzanine debt investments from its offices in Houston and Dallas providing capital for growth and expansion, recapitalizations of family owned or closely held companies, generational changes in ownership, and management buyouts.

Please visit our new website at www.tcgfunds.com for more information.

Please note our new email addresses below:

We thank you for your continued support and wish you success in 2007.

January 2007

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© 2007 The Catalyst Group:: www.tcgfunds.com