PES Secures $5M Revolving Credit Facility

June 28, 2005

Progressive Employer Services (PES), a privately held professional employer organization (PEO), announced today that it has entered into a $5,000,000 revolving credit facility with PNC Business Credit, the asset-based lending arm of PNC Bank, National Association. ‘This is very significant for us,” commented Steve Herrig, Progressive Employer Services’ CEO. “We are eager to leverage our existing business model to acquire other PEOs. These funds and our existing internal capital will allow us to seriously pursue opportunities in the marketplace.”

“Progressive is a service company without many hard assets, but we recognize that they have good cash flow,” stated Peter Thompson, Executive Vice President, PNC Business Credit. “As a result, we were able to get creative and provide them the funding they need for acquisitions
with the collateral we need for risk mitigation.”

Founded in 1999 as a four-person company, Progressive has consistently increased its revenues and client base over the last six years. Progressive’s growth has come from internally generated business via its sales force, broker-placed business and business acquisitions. Today, the company’s annualized gross revenue is over $250,000,000 and it services over 10,000 worksite employees.

In August 2004, Progressive received a $6,000,000 private equity investment from Palm Beach Capital. “We invested because we saw, and still see, significant growth opportunities for Progressive,” said Nate Ward, Principle of Palm Beach Capital. “We are prepared to help them do 1-2 acquisitions per year.”

About Progressive Employer Services:

Progressive Employer Services is a professional employer organization based in Sarasota, FL with regional offices in Clearwater, FL and Ft. Lauderdale, FL. Progressive provides payroll administration, employee benefits, workers’ compensation, risk management, human resources and regulatory compliance services to small and medium sized businesses.

Progressive is a member of the National Association of Professional Employer Organizations (NAPEO) and the Florida Association of Professional Employer Organizations (FAPEO). Progressive has achieved the Tax & Benefits Payment Certification for the past three fiscal quarters.

For more information about Progressive Employer Services please visit www.progressiveemployer.com or call (888) 925-2990.

About Palm Beach Capital

Founded in 2001, Palm Beach Capital is a private equity investment firm which specializes in making investments in and building early and middle-stage private companies. With offices in both Palm Beach and Tampa, Florida, the firm focuses on high growth investment opportunities with enterprise values ranging from $10 million to $100 million. Since its inception, Palm Beach Capital has made investments in over 20 companies and has approximately $200 million in total assets under management. For more information, please visit the firm’s website at www.pbcap.com.

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