Baird Capital Partners: Closes Management Buyout of Xaloy, Inc.

For Immediate Release

For further information, contact:

Andrew Brickman, Partner
Baird Capital Partners
(312) 609-4702
abrickman@rwbaird.com

Angela Pittman, Public Relations Coordinator
Robert W. Baird & Co.
414.298.1902
apittman@rwbaird.com

BCP Majority Owner Of Leading Manufacturer of Systems and Components for Plastics Machinery
CHICAGO, March 9, 2004 – Baird Capital Partners (BCP), the U.S. private equity affiliate of Robert W. Baird & Co. (Baird), in partnership with management, has completed the acquisition of Xaloy Incorporated (“Xaloy”). Xaloy is the world’s leading manufacturer of process systems and components for plastics molding and extrusion machinery. The company has six plants in the United States, a plant in Thailand and a sales and service subsidiary in Japan.

BCP was the lead equity investor and is the majority owner along with Xaloy’s senior management team. Key Principal Partners, LLC participated in the transaction by providing subordinated debt financing, as well as an equity investment. Harris Trust and Savings Bank provided senior debt financing.

Xaloy is the world’s largest manufacturer of plastification units and components used in plastic injection molding and extrusion processing machinery sold to original equipment manufacturers and in the aftermarket to plastic processors. Pittsburgh, PA based Xaloy was founded in 1929 and the Company invented the bimetallic casting process that is currently used in the manufacture of its cylinder products. The Company primarily manufactures screws and barrels, which due to their critical nature are considered the “engine” of the machine and are often unique to each individual machine and to a specific process. With six manufacturing facilities located in the U.S. and one facility in Thailand, as well as a sales office in Japan, the Company is the worldwide market share leader in the screw and barrel market and the only Company to operate out of more than one geographic region. For more information visit www.Xaloy.com.

“Xaloy is a success story because of its ability to deliver high quality, technical products while meeting exacting customer specifications on a timely basis,” said Andrew Brickman, a Partner at Baird Capital Partners. “With the capital resources in place for growth, we look forward to working with management to build upon the Company’s past successes, leading market position and strong brand recognition. The strong market position, name recognition and the track record of the senior management, in conjunction with the growth opportunities within the plastic machinery markets in which the Company competes made for an ideal fit for Baird Capital Partners.”

“We are excited to partner with Baird Capital Partners as we continue to build our business,” said Walter Cox, CEO of Xaloy. “We see many opportunities, both in domestic and international markets, to continue to grow the Company and build on our core strengths. With the completion of this transaction, we are poised to take the next steps in the evolution of our company.”

About Baird Global Private Equity
With more than 40 professionals in the United States and Europe, Baird’s global private equity business has raised and managed nearly $1 billion in capital. Baird Capital Partners (BCP) provides late-stage growth capital or change-of-control capital to U.S.-based, middle- market companies in the areas of Business Services, Industrial Products and Technology, Communications, Consumer and Healthcare/Life Sciences. Baird Venture Partners (BVP) makes venture capital investments in early- to growth-stage companies in three industry sectors: Business Services, Technology and Healthcare/Life Sciences. Granville Baird Capital Partners (GBCP) is a long-established private equity manager targeting mid-market growth companies principally in the UK and Germany with a focus on the Business Services, Healthcare, Industrial Products & Services and Technology sectors. The group’s investments are supported by Baird’s full range of financial advice, operating expertise and industry research, providing a unique full-service approach to the entire private equity investment process. For more information, please visit Baird’s Private Equity website at www.bairdprivateequity.com.

About Baird
Baird, established in 1919, is an international wealth management, investment banking, asset management and private equity firm with offices in the United States, United Kingdom and Germany. Baird’s principal operating subsidiaries are Robert W. Baird & Co. in the United States and Robert W. Baird Group Ltd. in Europe.

Committed to being a great place to work, in 2004 Robert W. Baird & Co. was included on FORTUNE magazine’s annual list of the “100 Best Companies to Work For.” Robert W. Baird & Co. is a member of the New York Stock Exchange and other principal exchanges and the Securities Investor Protection Corporation (SIPC). Robert W. Baird Ltd., a member of the London Stock Exchange, and Granville Baird Capital Partners Ltd. are authorized and regulated in the United Kingdom by the Financial Services Authority. Baird is part of the Northwestern Mutual family of companies. For more information, please visit Baird’s Web site at www.rwbaird.com.