ArchivesOne Acquires Carlyle Business Archives In New York, New York

For Immediate Release
Thursday, September 19, 2002

Watertown, CT - ArchivesOne, a Watertown company specializing in records management and storage services, has acquired Carlyle Business Archives in New York, New York.

The transaction represents a 30% revenue growth increase for ArchivesOne. Banknorth, N.A., Connecticut, based in Glastonbury, CT , provided the debt financing. Equity investors, led by Housatonic Partners, a Boston based venture capital firm and current ArchivesOne shareholder, and FARM Capital Services, provided equity financing.

"I am very enthusiastic about the deal," stated ArchivesOne SVP for Sales & Marketing Jon D'Elia. "The new customers will fit nicely into our existing customer base and move us further toward our goal of being the number three player in the industry." The transaction adds approximately 600 customers to ArchivesOne in the Metro New York marketplace. Concurrently, ArchivesOne expanded its Newark, New Jersey operations center by 100,000 square feet to accommodate the growth in Metro New York.

ArchivesOne COO John Pavlovich said, "This is a nice deal for us. Since we already operate in the Metro New York marketplace, the new customers will get great service immediately. We will be able to leverage our current infrastructure and operations." Jon D'Elia, ArchivesOne's Senior Vice President of Sales & Marketing, added, "This is a great customer portfolio that we are picking up. The customers will get better service quality from us and will be offered an extended group of value added information management services. It's a real win-win opportunity."

"This is a company that has a nice business model in place" commented Patty Langer a Vice President at Banknorth. "The Bank is very comfortable with their growth strategy and execution capabilities. The Carlyle acquisition is a great opportunity and a very good fit for ArchivesOne. I am delighted to grow our relationship with ArchivesOne and help finance their growth."

ArchivesOne services customers in Connecticut, Long Island, New Jersey, Metro New York City, Ohio, Albany and Westchester. Since its inception in 1991, ArchivesOne has grown substantially; the company now boasts over 2,500 customers and over 100 team members. ArchivesOne is one of the ten largest records management companies in the U. S.