ARCHIVESONE ACQUIRES EASTERN SECURED DATA OF ALLENTOWN, PA
Second Acquisition in a Month for ArchivesOne

MIDDLEBURY, CT & ALLENTOWN, PA / JANUARY 9, 2007 - ArchivesOne, Inc., the third largest records management and document storage company in the U.S., announced the purchase of Eastern Secured Data (ESD), a records management company based in Allentown, PA.  The acquisition expands ArchivesOne’s service area in the suburban Philadelphia market where the company currently operates three records management customer centers in Reading, Lancaster and Exton, PA.

The purchase is the 33rd acquisition since ArchivesOne was founded in 1991 and the second in a month for the company.  

“With the ESD acquisition, we can further expand our service area and increase our customer base by 700 in the important Eastern Pennsylvania market,” said Jon D’Elia, Senior Vice President of Sales and Marketing for ArchivesOne.

 “We are continuing to grow ArchivesOne by acquiring records management companies in strategic markets,” said John Pavlovich, COO for ArchivesOne. “With the sizable acquisition of ESD, ArchivesOne expands its annual run-rate revenue base to $50 million, with EBITDA margins exactly where we want them to be,” continued Pavlovich. “We look forward to continuing the high level of customer service and efficient records management operations provided by the current ESD team who will be integrated into the ArchivesOne family,” added Pavlovich.

A. J. Wasserstein, ArchivesOne’s CEO, elaborated, “While I am certainly excited about this transaction and our track record in our M&A program, I am equally excited about our success in achieving significant organic growth while maintaining operational excellence in our records centers.  We are building a customer-centric business that is oriented towards current and future customer needs,” continued Wasserstein.

Mike Wells, former owner of ESD, enthusiastically endorsed the deal with ArchivesOne.

“My family and I are forever grateful to the customers and employees who have remained faithful to ESD over the last 17 years.  Since we share the same business ideals, I am confident that Archives One will continue the same quality service ESD has been proud to provide, while enabling our employees to explore new opportunities within the business,” said Wells.

ArchivesOne has raised $125 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 accomplishment 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.