Park Avenue Equity Partners Announces its Control Investment in Liberty Tire Services, LLC

New York, September 1st, 2004 – Park Avenue Equity Partners, a New York based private equity fund, is pleased to announce the acquisition of a controlling interest in Liberty Tire Services, LLC, headquartered in Pittsburgh, PA. Park Avenue Equity, the sole equity investor, has made the investment to enable Liberty Tire to continue its strategy of expansion through acquisition. Liberty Tire owns and operates used tire collection, processing and disposal operations. One of the largest used tire processors in the U.S., the Company currently has operations in the Midwest and the Southeast and is looking to expand and consolidate nationwide.

“Park Avenue Equity’s investment in Liberty Tire was driven by our experience in the waste sector and respect for Liberty Tire’s management team, which has a proven track record of success,” said James Gladney, Partner at Park Avenue Equity Partners. “We are delighted to partner with Liberty in an industry we believe offers strong growth potential.”

Chief Executive Officer Jeff Kendall leads Liberty Tire. Mr. Kendall has a long and highly successful record of building, operating and selling waste franchises in the U.S., both in the public and private markets.

“Liberty Tire's partnership with Park Avenue Equity now enables us to execute the expansion plans we have identified over the last several years. With four facilities in two states, Liberty Tire is looking forward to combining its operating expertise with Park Avenue Equity's financial acumen to develop both through acquisition and internal growth a much larger and fully integrated tire processing, recycling and disposal company.”

Liberty Tire derives revenue from two sources: front-end business, representing the majority of revenue, and back-end business. Front-end revenues come from the fee Liberty Tire is paid to collect, haul and dispose of used tires from sources ranging from private retail tire dealers to state and local government agencies. Back-end revenues are derived from the sale of the shredded tire chips to customers for tire derived fuel (alternative fuel source), civil engineering (construction/road fill, landfill liners) and ground rubber (molded rubber products). The Company’s business model is based on having the choice of either profitably land-filling tire chips or further shredding the tires and selling the product to users at a higher profit margin.

Park Avenue Equity Partners is a $110 million private equity firm focused on middle-market companies in a wide range of industries. The Partners have contributed approximately 25% of the Fund’s committed capital and have broad experience in all aspects of private equity. Park Avenue Equity makes equity and equity-linked investments in companies with opportunities for growth, established profitability and excellent management teams. The Firm is an active partner with management in building the value of its portfolio companies.

To contact Liberty Tire Services, LLC:
Dale Van Steenberg, Chief Financial Officer or Ron Carlson, Chief Operating Officer
635 Liberty Avenue, Dominion Tower, Suite 3100, Pittsburgh, PA 15222
O (412) 562-1700
F (412) 562-0248