USESI to be acquired by CED
Press Announcement, October 9, 2007

EXTON, PA. & WEST LAKE VILLAGE, CA; OCT 9, 2007 – US Electrical Services, LLC,  is very excited to announce it is being acquired by CED.    The stock of US Electrical Services, LLC will be incorporated under a new corporation (US Electrical Services, Inc. – “USESI”) which will continue to operate as a separate entity with the same focus on growth and customer service that has made USESI one of the industry’s fastest growing electrical distributors.

USESI’s founder, Richard Worthy, will continue to lead the company as its CEO, and the entire US Electrical senior management team will also remain with the Company.  “I’ve known Dean Bursch for quite some time,” said Worthy.  “and have the utmost respect for him and the operating model CED has utilized to build the most successful branch centric electrical distributor in our industry. Their operating model has forged a clean, crisp customer strategy, operating strategy, and employee strategy into a highly successful profit model that has created lasting value for the customer, employee and shareholder alike."

"As we talked it became clear that we share a common, optimistic vision of the electrical distribution industry’s evolution, and most significantly, that the regional hub and spoke model that USESI employs was a distinct operating model and skill set that CED did in fact highly value. The last 6 months of negotiations also proved there is very good chemistry and the personality 'fit' is right.  Our many meetings with CED cemented our initial feelings that CED was the right home for USESI.  I personally am very excited, comfortable and enthused to be part of the CED team.”

"Even though Standard Electric (SESCO) was CED’s lone hub and spoke operating example, Dean Bursch’s appetite to have two totally separate models was apparent as was their desire to enthusiastically support USESI’s continued growth. As part of this transaction, SESCO will come under the USESI umbrella of regional companies along with EW, Monarch, Wiedenbach-Brown, and Lade/Danlar. No other CED business is planned to be part of USESI as the two operating models are significantly different and the growth potential of a stand alone USESI through further acquisitions and organic branch openings is very great in its own right.”

“USES, LLC was founded in early 2006 and has acquired 11 electrical distribution companies, opened 19 new store locations, 3 CDCs and has brought online nearly a half million square feet of warehouse space. We have spent the last 9 months integrating these companies, and are now again back on the acquisition and expansion trail with the full support of CED.  We are a growth company and will continue to be such. The USESI executive team’s track record over the past decade has been one of prudent but consistent acquisition and organic growth in good economic times and bad. We are excited to have a sponsor that has the same high expectations as we do and recognizes our operating model’s potential .”

US Electrical Services, Inc., with principal offices of operation in Exton, PA, is engaged in the wholesale distribution of electrical products and related services. For more information about our 70+ locations, please visit www.usesi.com or contact info@usesi.com