REGENCY WINDOWS CORPORATION

FOR IMMEDIATE RELEASE
July 1, 2004
Contact: Lauren B. Sinai

Prospect Partners and Montgomery Shelton & Co. Invest in Regency Windows Corporation

Investment Paves Way for Geographic Expansion of Growing Regional Home-Improvement Company

CHICAGO, Ill.—July 1, 2004: Together with management, Prospect Partners, LLC of Chicago, Illinois and Montgomery, Shelton & Co. of Winnetka, Illinois are proud to announce their investment in Regency Windows Corporation of Twinsburg, Ohio.

Regency is a third-generation business that has been serving northern Ohio since 1971. The company specializes in selling brand-name vinyl windows, siding and kitchen refacing to homeowners at discounted prices and in providing installation services via its own highly-trained specialists.

"This is an attractive investment from both a company perspective and a market perspective," says William V. Glastris, a principal at Prospect Partners. "Regency is a long-standing, growing business that has placed a huge emphasis on quality products and customer service. Based on its reputation, strong customer base and portfolio of products, we see a solid opportunity to work with Montgomery Shelton and Regency's management team in expanding the Regency name into adjacent geographical markets."

In addition, Glastris says, the growing home-improvement industry is favorable to extending Regency's geographic reach. "The replacement market is appealing. As a matter of course, especially with older housing stock, homeowners periodically need to put in new windows and siding and update their kitchens. With a company as focused on customer care as Regency is, that also means ample opportunity for referral and repeat business."

Regency's CEO and president, Mike Magden, known locally as "Mikey," the spirited personality in Regency's commercials, will continue to run the company. His sons, Aaron and Harley, also will remain actively involved in the business.

"This new partnership will provide us with the institutional support we need to take the Regency approach to other lucrative home-improvement markets. We look forward to growing our business even more, here in northern Ohio and elsewhere," Magden says.

Prospect Partners' investment partner, Montgomery Shelton & Co., is a highly experienced, operationally oriented buyer that has completed 10 acquisitions since its 1984 founding. Partners Mead Montgomery and David Shelton offer a broad base of investment knowledge plus key operating experience in companies in a variety of industries. Montgomery Shelton will remain actively involved in the growth and development of Regency as it seeks to expand.

"Regency has developed a business model with unusually efficient marketing at the front end, and consistent, quality-driven installation at the back end," says David Shelton, a partner of Montgomery Shelton. "The back end is especially important because while the home-improvement industry is enormous and growing, the installation services segment is notoriously inconsistent when it comes to quality and service. We believe that the combination of Regency's business model, Mike Magden and his management team and the experience and capital of Prospect and Montgomery Shelton, has tremendous potential."

Together with Montgomery Shelton and Regency, Prospect Parners will selectively pursue add-on acquisitions of other home-improvement companies that specialize in both windows and installations.

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