Prospect Partners and Management Acquire Industrial Hoist Services From National Equipment Services Rental Holdings

Leading Hoist Company Primed for New-Market Growth

CHICAGO, ILL.—January 10, 2005: Prospect Partners, LLC along with management, has acquired the assets of NES Industrial Hoist of Brazoria, Texas from its publicly traded parent company NES Rental Holdings, Inc. (NLEQ) of Chicago.

NES Industrial Hoist is the national market leader specializing in the rental, service and sale of pneumatic, electrical and mechanical powered chain hoists and winches ranging in capacity from 1/2 to 100 tons. The equipment is supplied to power plants, refineries, shipyards and other large industrial users throughout North America. Typical applications include plant shutdowns, routine repair and maintenance, new construction and overhead hoist/crane safety inspection work. The company also provides certification services for overhead hoists and winches. The new company will operate under the name of Industrial Hoist Services, LP.

In the acquisition, Prospect Partners partnered with the division's management team of James G. Kowalik, General Manager, who founded the business in 1983 and will continue to run its day-to-day operations as President along with current executives Mark Atnip - Operations, Anthony Piwonka - Sales and Ed Gonzales - Service.

Kevin P. Rodgers, the former Chief Executive Officer and founder of NES, who also partnered with Prospect Partners in the acquisition as an independent equity sponsor, will oversee Industrial Hoist as CEO.

"I am very excited about the opportunity to partner with James, his team and Kevin -- all are true industry veterans who know the industrial hoist and equipment rental market extremely well," says Louis W. Kenter, a Principal at Prospect Partners.

Over time, Industrial Hoist has solidified its market niche and become a true industry leader, with the largest rental fleet of hoists, winches and related rigging available in the United States. In addition to its main facility in Brazoria, Texas, the company operates branches in Columbus, Ohio; Atlanta, Georgia and Geismar, Louisiana.

Although part of a large publicly traded company, Industrial Hoist didn't precisely fit with NES Rental's traditional, general equipment rental business, Kenter says. Industrial Hoist was a niche market provider with a very specialized product and service crews trained primarily to inspect, maintain, repair and certify sophisticated industrial heavy lifting and rigging devices.

Kenter continues, "We see significant opportunities for growth, including the ability to further develop the market for new construction as well as markets such as the certifying, load-testing and maintenance of hoists, overhead cranes and winches."

CEO Mr. Rodgers will be based in Chicago, working with Prospect on other specialized industrial hoist equipment and rental transactions. "This was a difficult deal to get done, and Prospect was able to leverage its relationships to close and bring it to conclusion in a timely fashion," he says.

"We had numerous choices in the equity markets to complete this deal," recalls Industrial Hoist President Mr. Kowalik. "The fact is from our first meeting with Prospect, their 'open' listening style made it very clear we had found a real partner. The whole team at Industrial Hoist is very excited about the future and our prospects for growth. Personally, reuniting with Kevin Rodgers is extra special; we have known each other for eight years and work extremely well together. I knew it was only a matter of time before we joined forces again with the opportunity to build a unique company, using Industrial Hoist as a foundation."

The acquisition of Industrial Hoist Services marks the second platform of Prospect Partners II, a $165 million private equity fund that closed in June, 2004.

Mr. Kenter and Mr. Rodgers will serve the company as Chairman and Director, respectively.

About Prospect Partners

Prospect Partners, LLC of Chicago, Illinois is a leading investor in unique lower-middle-market companies, managing two private equity funds totaling $270 million. Since its inception in 1998, Prospect Partners has focused on management-led leveraged acquisitions and has invested in more than 40 leading companies within many niche consumer, commercial, specialty distribution and service markets throughout the United States.