ellman International, Inc

2008 BAIRD CAPITAL PARTNERS ACQUIRES ELLMAN INTERNATIONAL
Executive-in-Residence Rick Epstein Becomes CEO

OCEANSIDE, N.Y., February 13, 2008 – Baird Capital Partners (BCP), the U.S.-based buyout fund of Baird Private Equity, announced today it has acquired Oceanside, N.Y.-based Ellman International, Inc. Ellman International is a manufacturer of surgical devices used to perform medical, dental and veterinary procedures in the United States, Europe and Asia. Co-investors include Thrivent Financial for Lutherans, Rick Epstein, Ellman International management, and CIT Healthcare, which provided senior debt for the deal.

As a part of the transaction, BCP appointed Rick Epstein as Ellman International’s new CEO. Epstein is an executive-in-residence working with BCP to source and evaluate new healthcare investment opportunities. His extensive healthcare industry experience includes senior executive roles at Cardinal Health, Intuitive Surgical and Baxter International spanning over 20 years. As Vice President and General Manager for V. Mueller & Snowden Pencer (Cardinal), Epstein and his team transformed a slow growth instrument company into a high–growth and dynamic business.

“Rick’s leadership and operations experience complement BCP’s deep industry expertise, which will certainly help us meet our goals of growing the company and generating investor returns,” said Gordon Pan, BCP partner. “We look forward to working closely with Ellman International’s management team and are very optimistic about the company’s future.”

“Ellman’s product portfolio enables medical professionals to perform surgical procedures that produce less tissue damage, scarring and pain than the competition. These products are in higher demand as customers seek these advantages from their dermatologists and plastic surgeons among other specialties,” said Epstein. “We see a tremendous opportunity to drive growth by expanding the company’s product and patent portfolio, the company’s presence with top thought leaders and enhancing the company’s sales and marketing efforts to broaden its customer base.”

Commenting on the deal, former Ellman International chief executive officer Alan Ellman said, "Ellman International created the first high frequency radiosurgery products, which enables our medical, veterinary, and dental customers to perform surgical procedures with unprecedented precision. The investment and commitment by Baird Capital Partners will help to enhance Ellman's future as a global leader in electrosurgery."

Jon Garito, former President of Ellman International, added, “the Baird Capital Partners investment will help expand the Ellman International product portfolio to markets and customers that currently know little about our patented technology.”

Jon Garito and Alan Ellman will continue to be involved in the company as consultants for at least the next two years and will also continue to be investors in Ellman International. Alan will continue to run Elliquence, a new neuro-spine, pain management venture, and consult for International, while Jon will devote the majority of his time to Ellman International. The new management team looks forward to working with Alan and Jon on a daily basis.