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November 3, 2004
CHS Fund IV Realizes Distribution Through the Recapitalization of Berkline/Benchcraft LLC

Code Hennessy & Simmons LLC (“CHS”) today announced a distribution to investors in Code Hennessy & Simmons IV LP (“Fund IV”) resulting from the recapitalization of Berkline/Benchcraft LLC (“Berkline”). Based in Morristown, TN, Berkline is one of the largest independent suppliers of upholstered furniture in North America. CHS acquired Berkline in March 2002, investing $61.5 million from Fund IV.

Berkline is a leading manufacturer of residential upholstered furniture in North America. The Company offers the industry’s broadest selection of upholstered furniture through its two principal brands, Berkline® and BenchCraft®. The Berkline® product offering is focused exclusively in motion furniture, such as reclining sofas, love seats sectionals, and home theater seating while the BenchCraft® product offering is focused primarily on stationary fabric and leather upholstered furniture. Since completing its majority equity investment in Berkline, CHS has worked closely with Berkline’s management team to integrate operations, refine Berkline’s operating model to provide rapid delivery and broad product selection through a combination of domestic and offshore sourcing, introduce innovative products and maximize cross-selling opportunities with the recent opening of the company’s new showroom in High Point, North Carolina. As a result of these efforts, Berkline continues to generate strong operating performance, driven by growth in sales of both Berkline and Benchcraft branded products.

Bill Wittenberg, Berkline’s CEO, said “Before making their investment in Berkline, CHS invested tremendous resources to understand the furniture industry and Berkline’s unique business model. At closing, CHS and the management team understood Berkline’s priority to be rapid deleveraging with selective investment to position Berkline for an industry recovery. The completion of the recapitalization is testament to the successful execution of the investment plan.”

Peter Gotsch, partner at Code Hennessy & Simmons LLC, said, “CHS is proud of the management team at Berkline. Led by Bill Wittenberg, the team has generated outstanding financial results.”

CHS is a Chicago-based private equity firm specializing in private equity investments and recapitalizations of middle market companies in partnership with management. CHS has formed four private equity funds and currently manages over $1.5 billion of capital.