CHICAGO — Code Hennessy & Simmons LLC (“CHS”) announced today a distribution to investors in CHS Private Equity V LP (“Fund V”) resulting from the recapitalization of Penhall International Corporation (“Penhall”). Based in Anaheim, California, Penhall is a leading provider of concrete- and asphalt-related services. CHS acquired Penhall in July of 2006, investing $53.5 million of Fund V capital. The recapitalization resulted in a distribution of $48.8 million, representing a return of approximately 91% of CHS’ original investment.

Penhall provides a broad range of concrete services to the non-residential building construction and infrastructure markets. Penhall operates an equipment fleet of 775 revenue-producing units, operated by over 800 skilled employees. Its customer base includes over 15,000 local and national general contractors, industrial companies, government entities and municipalities.

Since completing its investment in Penhall, CHS has worked closely with Penhall’s senior management team to actively pursue growth opportunities. Penhall has diversified its geographic reach and service offerings through the acquisition of The Graff Company Ltd., a leading concrete cutting and scanning services provider based in Ontario, Canada. Penhall will continue to seek select add-on acquisition opportunities to further the company’s growth.

John Sawyer, President and CEO of Penhall, said, “Our relationship with CHS has exceeded our expectations. With significant management support, we’ve been able to expand our cross-border presence through the Graff acquisition, as well as position ourselves for future growth.”

Dan Hennessy, Partner at CHS, said, “We have worked with John Sawyer and his team at Penhall to make great strides in a short period of time. In just eight months, we have completed the Graff acquisition as well as enhanced the senior management team by hiring CFO Bruce Lux, previously the CFO at another successful CHS investment. We will continue working closely with Penhall on numerous growth initiatives.”

The combination of strong financial performance and attractive capital markets allowed CHS and Penhall’s management team to explore numerous corporate finance alternatives with CIBC and Deutsche Bank.

CHS is a Chicago-based private equity firm specializing in private equity investments and recapitalizations of middle market companies in partnership with management. CHS has formed five private equity funds and currently manages over $2.5 billion of capital. For additional information about CHS, please refer to the firm’s Website at www.chsonline.com.