One-Off Triple Win Growth Opportunity for Private Equity According to Newton Europe

OXFORD, England, July 14, 2010 - When a recession actually occurs, everyone knows where they are and,
difficult as things may be, there's a "we're all in this together" sense to
it. The early-stage priorities are clear: reduce costs, reduce inventory,
and reduce anything and everything that can lighten the load.

However, later, when the recession ends, there is not the same
commonality of experience … except, maybe, confusion. Early-stage
recoveries can be unpredictable, messy and, frequently, unreliable. The
reason why these treacherous conditions arise is, of course, because
recoveries possess no homogeneity or symmetry.

During the depths of a recession, try as they might to stave off
disaster, some companies do go under. This sets up a new marketplace dynamic
that only really reveals itself when things start to improve. At this point,
fewer companies find themselves trying to respond to unplanned order levels.

The result is the worst of all possible worlds: companies that, after a
long period of dismal trading, need desperately to be able to exploit growth
opportunities, find themselves unable to do so.

Newton, Europe's leading operational and financial improvement
specialist, believe we are at this point in time right now. "Partly driven by
customers replenishing depleted inventory levels and partly competitors going
under, we are now seeing businesses with order books exceeding demand. This
is causing serious strain on supply chains that have been weaned for leaner
times. The result is that companies are seeing lead times extending, delivery
performance deteriorating, customer satisfaction dropping, marginal costs
accelerating and opportunities being missed," said Tom Wedgwood, Director at
Newton

The situation is particularly poignant for private equity because
liquidity remains so restricted. The opportunity for portfolio companies to
exploit these market opportunities and deliver value through internal
processes and efficiencies is surely not to be missed.

In fact, Tom Wedgwood makes the point that this activity can deliver a
triple win: "Win 1, because operating performance improvements directly
enhance portfolio value. Win 2, because the improvements afford positive PR
opportunities by demonstrating to a sceptical world that private equity can
play a key role in a more prosperous future by growing businesses and
protecting jobs. And Win 3 because, in a world where up to 50% of mid cap
firms may disappear and are ultimately competing for survival, demonstrating
an ability to grow a portfolio's turnover and profit is an important element
in ensuring success in raising future funds."

Email laura.skett@newtoneurope.com to request Tom's whitepaper 'Private
Equity: How to exploit an extraordinary opportunity in a world turned upside
down'.

About Newton

Newton is the leading operational and financial improvement specialist in
Europe. Founded in 2001 by a group of highly qualified and experienced
engineers, the company's objective is straightforward: to deliver performance
improvement of 10% - 50% in any client's operations and supply chain without
incurring capital expenditure.

From its roots in manufacturing, Newton applies its unique engineering
based approach across a wide range of industry sectors, working in areas as
diverse as aerospace, automotive, defence, food & drink and healthcare, from
the factory floor to design offices and throughout the supply chain.

Newton are not management consultants, they do not focus on strategy,
re-structuring or re-organisation - their focus is on identifying and
resolving the issues that limit performance, to deliver a tangible and
measurable improvement, backed by Newton's guarantee "no results, no fee".

Newton has a substantial proven track record and has worked with many
forward thinking organisations including Rolls-Royce, BAE Systems, VT Group,
Nissan, Kerry Foods, British Airways and the NHS.

www.newtoneurope.com

For more details on how Newton can benefit your organisation, please call us on: +44 (0)1684-576477. Media Relations for Newton Europe, Laura Skett, +44(0)1865-920700, Laura.skett at newtoneurope.com