Republic Financial Announces Sale of American Identity

Colorado Private Equity Firm Realizes Profit by Turnaround Investment

Republic Financial Corporation, a privately held company with investment interests in diverse assets and entities, announced today the completed sale of American Identity, Inc., a leading promotional products company, to Staples, Inc., the world’s largest office products company. By partnering with management during its five years of involvement, Republic Financial was able to successfully manage a turnaround of the sales and operations of American Identity, a company in distress, to create a valuable asset. Republic Financial was advised by Goldsmith Agio Helms on the transaction.

Republic Financial’s Executive Vice President Robert Possehl stated, “We are delighted with the outcome of this transaction. American Identity’s unique market position and customer profile has allowed the company to join forces with a highly respected corporate team at Staples.”

“The American Identity family is thrilled about joining Staples and the opportunity this presents for our customers, employees, and sales organization,” said Roger Henry, American Identity Chief Executive Officer. “We are eager to begin working with Staples to accelerate the growth of our business and to leverage their e-commerce expertise and leading supply chain network.”

Republic Financial has a team of accomplished professionals that collaborates with management to bring unique investment opportunities to its partners. With a mission of generating superior long-term value, Republic combines its deep expertise in business development and maximizing business growth potential while working alongside the key management of its equity partners.

Republic Financial Corporation (http://www.republic-financial.com/) is a privately held company with investment interests in a diverse portfolio of operating companies and assets. Representative industries include aviation and aerospace, security software, telecommunications, data services, corporate staffing, heavy equipment manufacturing and construction aggregates. The company invests in small market buy-outs, commercial debt acquisitions, troubled middle-market companies and aviation assets. With a mission of generating superior long-term value, Republic combines its expertise in business development and maximizing business growth potential with the experience of its portfolio companies’ key management. Since 1971, Republic has invested in assets totaling over $1 billion, achieving commercial success by developing creative solutions to difficult and complex business situations.

American Identity, Inc. (http://www.americanidentity.com/) is a leading multi-channel marketer of customized advertising. The company provides specialty items to the $18 billion promotional products industry and distributes its products internationally, servicing small businesses to Fortune 1000 companies. American Identity’s scale, vertical integration, technology infrastructure, high service levels, and unique business model make it an industry leader. Delivering branded merchandise to its customers via a multi-channel strategy that uses the Internet, catalogs and direct mail, telemarketing, and direct sales, the Company collaborates with its customers to develop full-service corporate identity programs. With an infrastructure that supports rapid and reliable order turnaround, American Identity is the company of choice for a blue-chip roster of some of the most well-known corporations in America.

Staples Inc. (http://www.staples.com/), the world’s largest office products company, offers a wide range of office products, including supplies, technology, furniture, and business services. With 2006 sales of $18.2 billion, Staples serves consumers and businesses ranging from home-based businesses to Fortune 500 companies in 21 countries throughout North and South America, Europe and Asia. Headquartered outside of Boston, Staples operates approximately 1,900 office superstores and also serves its customers through mail order catalogs, e-commerce and contract businesses. The company’s Contract division services national organizations with significant office and technology needs as well as medium to large regional companies with moderate office and technology expenditures.

Goldsmith Agio Helms (http://www.agio.com/) is one of the nation’s leading private investment banking firms providing financial advisory services to middle-market businesses. The firm’s services include mergers and acquisitions, distressed advisory and restructuring, valuations and fairness opinions, and private placements of debt and equity. The firm has offices in Chicago, London, Los Angeles, Minneapolis, New York, and Shanghai.