TRANSOM CAPITAL GROUP ACQUIRES THE MIDWEST CENTER FOR STRESS AND ANXIETY

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Los Angeles, CA (October 1, 2008) – Transom Capital Group announced today that it has acquired The Midwest Center for Stress and Anxiety (MWC). MWC is the leading provider of self-help and coaching programs to people who suffer from stress, anxiety, and depression. MWC’s flagship Attacking Anxiety & Depression product – a 15 week program of CDs and DVDs sold via TV and radio direct response advertising as well as the Internet – is the #1 non-pharmaceutical product for the treatment of these disorders. MWC is one of the top self-help brands in the United States with a large addressable market. Anxiety and depression are the most common emotional conditions in the world today, affecting more than 40 million adults in the United States, with a broad behavioral health market that exceeds $100 billion in size.

As part of the transaction, Transom Capital also acquired Good Living Labs (GLL), a company that sells nutraceutical (vitamin) products through both direct response and top retail distributors, such as GNC and Rite-Aid. The two companies will be operated on a consolidated basis going forward. Lucinda Bassett, the founder of the companies, will retain a significant ownership interest in the combined companies and will continue her active involvement in the companies’ operations.

Ken Firtel, Managing Director at Transom Capital, said “these companies represent an excellent addition to the Transom Capital portfolio. MWC has emerged as the top brand in its market over its 15+ year history, and GLL provides an attractive subscription business with recurring revenue streams. The company also has tremendous growth potential through the introduction of new products targeting additional segments in the self-help and wellness space and the expansion into additional distribution channels.”

“I am so excited to partner with Transom Capital to achieve the next stage of growth for the company,” Lucinda Bassett said. “I am passionate about creating high quality products that provide people with the tools to overcome anxiety, stress and depression, and, with the help of Transom Capital, I look forward to developing new products that will expand upon the strong foundation that the company has built over its history.”

Russ Roenick, Managing Director at Transom Capital, said that the transaction was an excellent fit with Transom Capital’s investment strategy. “MWC and GLL are middle-market companies with a strong core business and a team of talented managers, who are ready to pursue a compelling set of growth opportunities and operational improvements.”

Terms of the transaction were not disclosed. Ken Friedman, President of Friedman Enterprises, served as MWC and GLL’s investment banker. For more information on the transaction, please contact Transom Capital Group at (310) 407-0935.