J.F. Lehman & Company Realizes Successful Racal Acoustics Investment

For Immediate Release

August 13, 2005

New York, NY (August 13, 2005) – J.F. Lehman & Co., a New York-based private equity investor, today announced the sale of Racal Acoustics Limited for $93 million (£51.5 million) to UK-based private equity group, ECI Partners. J.F. Lehman & Co. and management had acquired the company in March 2004.

Based in London, England, Racal Acoustics employs 180 people and manufactures ruggedized military personal communications equipment including headsets, handsets and field communications systems. The company is a leader in its markets and has been supplying the UK Ministry of Defence for over 50 years. Its products are used in a wide variety of military applications in more than 80 countries worldwide.

Steve Brooks, Partner at J.F. Lehman & Co. said, “The Racal Acoustics management team has done an outstanding job in capturing new military program wins and transforming the business’s approach to its military marketplace. We couldn’t be more pleased with the outcome of our partnership with Geof Eeles and his team.” Tig Krekel, Vice Chairman of J.F. Lehman & Co. commented, “The results of our collaboration have been cross-functional process improvements in all business areas. The combination of new product development, increased focus on the customer and a disciplined approach to operations has yielded substantial bookings growth and earnings improvement.” Steve Brooks added, “As a result of these external and internal initiatives, J.F. Lehman & Co. has realized a return of four times its original investment.”

Joseph Kenny and Craig Wise of Wachovia Securities and Jason Steen of Steen Associates acted as financial advisors to J.F. Lehman & Co. on the transaction while Giles Elliott and Vica Irani of Jones Day served as legal advisors.

About J.F. Lehman & Co.
J.F. Lehman & Co. is a leading middle-market private equity firm focused exclusively on the defense, aerospace and marine sectors. The firm was founded by John F. Lehman, former Secretary of the United States Navy (1981-1987), and has completed 9 investments (12 companies) with an aggregate transaction value of approximately $1 billion. J.F Lehman & Co. has offices in New York, London and Washington. For more information about J.F. Lehman & Co., please visit www.jflehman.com.

J.F. Lehman & Company is a leading middle-market private equity firm focused exclusively on the aerospace, defense, maritime, government and environmental sectors. The firm has offices in New York and Washington, D.C.

For more information about J.F. Lehman & Company, please visit www.jflpartners.com.


Lisa M. Steffens

J.F. Lehman & Company

(212) 634-1150