Houston Service Industries, Inc. Has Been Acquired by Atlas Copco North America, LLC

HOUSTON, January 17, 2012 — GulfStar Group (“GulfStar”) is pleased to announce the sale of Houston Services Industries, Inc. (“HSI” or the “Company”) to Atlas Copco North America, LLC (“Atlas Copco”). GulfStar served as the exclusive financial advisor to HSI throughout the transaction, which closed on January 3, 2012.

Located in Houston, Texas, HSI engineers, manufactures and services blower systems utilized in multiple applications including water treatment, refining, landfill gas extraction, dust collection, pneumatic conveying, mining and other industrial applications. HSI’s extensive portfolio of proprietary technology and systems-based approach to the market have enabled the Company to develop one of the industry’s most advanced multistage centrifugal blower and high speed turbo blower product offerings.

“We are proud to join Atlas Copco,” said Dick Pearsall, President of HSI. “The strategic fit between the two companies is very compelling and the whole HSI team is excited about our future potential. GulfStar’s involvement in this transaction was critical. They aided our shareholders in assessing our alternatives and developing a transactional strategy to meet our long-term strategic goals. Their team successfully accentuated the key elements of our business, managed the transaction process and provided structuring and negotiating expertise, which collectively resulted in a highly successful transaction for HSI.”

Atlas Copco is an industrial group with world-leading positions in compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems. With innovative products and services, Atlas Copco delivers solutions for sustainable productivity. The company was founded in 1873, is based in Stockholm, Sweden, and has a global reach spanning more than 170 countries.

The GulfStar transaction team included Managing Director Alan Blackburn, Senior Vice President Joe Watt, Associate Bobby Bryan and Analyst Patrick Stefan. “It was a pleasure working with HSI on this transaction,” said Alan Blackburn. “HSI’s products and capabilities will expand Atlas Copco’s blower offerings and provide new opportunities in the wastewater and industrial sectors.”

About GulfStar Group
GulfStar Group is a leading middle market investment and merchant bank headquartered in Houston, Texas, with a strong market presence in Austin, Dallas, Louisiana and Oklahoma. GulfStar specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, restructuring and turnaround advisory services and general corporate finance advisory services to companies with revenue or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed over 500 transactions in more than 30 states and six foreign countries across a variety of industries. Through its merchant banking affiliate, the firm also makes equity and subordinated debt co-investments.

Securities offered through GulfStar Group I, an affiliated entity, member FINRA – SIPC.