ARCHIVESONE ACQUIRES VITAL RECORDS STORAGE OF HOUSTON
ACQUISITION MARKS ARCHIVESONE'S WESTERN EXPANSION INTO TEXAS MARKET

MIDDLEBURY, CT & HOUSTON, TX / DECEMBER 15, 2006 - ArchivesOne, Inc., the third largest records management and storage company in the U.S., announced the purchase of Vital Records Storage of Houston, Texas.  The acquisition, the 32nd for the company since 1991 and the fifth purchase this year, expands ArchivesOne’s service area in the records management industry westward into the Texas market for the first time.

The purchase also increases ArchivesOne’s market share in the records management industry substantially by adding almost 300 records storage clients to the company’s overall customer base.

 “The Vital Records acquisition in Houston is a major step in the growth strategy of ArchivesOne,” said John Pavlovich, COO for ArchivesOne. “With this acquisition ArchivesOne gains not only a foothold in the important Texas market, but also a boost in market share and financial growth as we strive to achieve our goal of growing the company to $60 million in annual revenues,” continued Pavlovich. “We are pleased to welcome the current Vital Records Storage team into the ArchivesOne family as they continue to offer the same, personalized service to our Texas customers,” added Pavlovich.

ArchivesOne has raised $120 million in capital to fund its growth program from various institutional creditors and equity firms, most recently raising an additional $20 million in senior debt financing from Bank of America.  “With financing in place, we are able to expand ArchivesOne’s geographic footprint and further penetrate our current marketplaces,” commented ArchivesOne CFO, Scott Brabant.  “Our success in raising capital and integrating acquisitions are key factors in the company’s financial success of sustained five-year compound annual growth rate in revenues of 41% and consistent financial results as evidenced by five-year compound annual growth in EBITDA of 54%,” said Brabant.