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TrustHouse Services Group & Valley Services, Inc. Merge

Charlotte, NC and Jackson, MS June 4, 2012 — TrustHouse Services Group, a leading Healthcare, Education and Corrections focused food services company, announced today that it has merged with Valley Services, Inc. The transaction which closed on June 1, 2012 is the second transaction closed by TrustHouse this year following the company’s transaction with Lindley Food Service in April. TrustHouse is a portfolio company of Gryphon Investors, a San Francisco-based premier middle-market private equity firm. Terms of the transaction were not disclosed.

Valley Services is headquartered in Jackson, MS and has been in business for 52 years providing food services in 20 states and generating approximately $185 million of annual revenues. Over 92% of Valley’s revenues are derived from the Healthcare, Education and Corrections sectors. Valley is the nation’s market leader in the senior nutrition sector, providing home and congregate nutrition services to the elderly.

The combined company will rank as the sixth largest food services provider in the United States and the fourth largest in the Healthcare and Education sectors.

The Chairman and Chief Executive Officer of TrustHouse, Michael J. Bailey, said, “This is a very strategic transaction for TrustHouse which virtually doubles the size of our company. TrustHouse will now have annual revenues of over $450 million and trade in 44 states. Valley Services is a great business run by a very successful and talented team which I am delighted to say will remain with the business and become significant shareholders in the new company. Valley’s presence in the senior nutrition sector, together with our Lindley Food Services business, makes us a clear market leader in the United States in an attractive and growing sector. One in five Americans will reach the age of 65 by 2020, resulting in over 70 million seniors.”

Going forward, Valley Services will continue to operate as a stand-alone division managed by CEO Jim Walt and his team. Mr. Walt commented “We are very excited about the prospects for the combined business. Through greater access to capital and additional resources resulting from the merger, we believe Valley Services and TrustHouse will achieve faster growth. Our combined strength will create greater opportunities for all our clients, employees and stakeholders.”

Gryphon Partner Keith Stimson commented, “The transaction is very strategic for TrustHouse in that it deepens the company’s already strong presence in the attractive Healthcare, Education and Corrections end-market as over 95% of TrustHouse Services’ revenues will now come from our core sectors. Valley also provides a significant presence in the South and will enable TrustHouse to more fully address the growing demand in the senior nutrition market. We are delighted to have Jim Walt and his talented management team become part of the business.”

The transaction was brokered by McColl Partners and Parker Poe and Adams & Bernstein acted as legal counsel. Both companies are Charlotte based.

About TrustHouse 
TrustHouse Services Group (www.trusthouseservices.com) is a leading food service provider focused on the Healthcare, Education and Corrections sector and currently manages over 420 client accounts across 33 states. Divisions of TrustHouse include Aladdin Food Management based in Wheeling, WV, AmeriServe Food Management headquartered in Columbia, MO, Fitz Vogt & Associates located in Walpole, NH, A’ viands Food Management Services in Minneapolis, MN and Lindley Food Services located in New Haven, CT. TrustHouse is headquartered in Charlotte, NC and was founded by Michael J. Bailey and Gryphon Investors, a San Francisco- based premier middle-market private equity firm.

About Valley Services, Inc. 
Valley Services, Inc.(www.valleyinc.com) is a leader in the contract food services market and is presently the 10th largest food service provider in the United States. Valley has annual revenues of approximately $185 million, manages over 250 client accounts in 20 states and was founded in 1960. Over 92% of the company’s revenues are derived from the Education, Healthcare and Corrections sectors. The company is the market leader in the senior nutrition market, providing nutrition services for the elderly. The business is headquartered in Jackson, MS.

About Gryphon Investors 
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) focuses on leveraged acquisitions of, and growth investments in, middle-market companies in partnership with experienced management. Having managed $1 billion of discretionary equity capital, Gryphon has an extensive track record of investing $25 to $75 million of its own capital in companies with sales ranging from $25 to $250 million. Gryphon prioritizes investment opportunities where it can form proactive partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, professional resources and operational expertise.

Contacts
TrustHouse: Michael J. Bailey (704) 424-1071
Valley : Jim Walt (800) 541-3805
Gryphon: Caroline Luz (203) 656-2829