Sunburst Technology > Thayer Acquires Sunburst

Purchase Adds Top Producer and Distributor of Educational Tools to Portfolio

WASHINGTON, D.C., October 2, 2002 -Thayer Capital Partners announced today its acquisition of Sunburst Technology, a division of Houghton Mifflin Company and a leading supplier of educational materials to elementary and secondary schools in the United States and Canada.

Sunburst is a leader in developing, publishing and distributing award-winning, multi-media educational software, videos and printed supplements for use in grades K-12. The company has three divisions:

Educational Resources, a multi-channel distributor of educational materials, is the largest company of its kind dedicated to the education market, serving more than 100,000 schools in over 16,000 school districts in the United States and Canada through its sales force, catalogs, and web presence, www.educationalresources.com.
Sunburst Software develops and sells educational software programs for the K-8 market, including such well-known brands as Tenth Planet, HyperStudio® and Type to Learn.
Sunburst Health and Guidance is a major producer of videos and printed supplements for educators, focusing on character education, the development of behavioral and social skills, life sciences, and history and geography.

"With the growth in education spending at all levels of government and the greater emphasis on technology in the classroom, we see this as an excellent business opportunity, buying top brands in a very stable industry with strong growth prospects," said Chris Temple, Managing Director at Thayer Capital Partners.

Temple added, "We believe this is an outstanding investment opportunity, but what made it most interesting was the chance to partner with an exceptional team of managers, including John Crowley, former President of Educational Resources, as well as Bob Battista and Brent Richardson. John has a demonstrated record of growing sales and profits at Educational Resources, and Bob and Brent both have excellent experience in the educational market."

"I am very excited about leading the start of this new adventure for Sunburst Technology," said John Crowley, the new CEO of the company. "The business is energized by an incredible team of talented people who produce and provide some of the best products and services in the industry. Together, we will bring educators a wealth of resources to help them meet all of their classroom demands."

"The sale of Sunburst Technology is part of Houghton Mifflin's long-term plan to focus on our core businesses," said Hans Gieskes, CEO of Houghton Mifflin. "We look forward to continuing relationships with both Educational Resources and Sunburst."

About Thayer Capital Partners
Thayer Capital Partners is a rapidly growing private equity investment firm based in Washington, DC. With two private equity funds totaling more than $1.2 billion, the firm manages buyouts and growth equity investments in two major sectors - growth manufacturing (including electronics, industrial components and outsourced manufacturing) and business services (including information technology and services and outsourced business services). Thayer has made capital investments exceeding $950 million in more than 50 transactions in the last four years. The Company's web site can be found at www.thayercapital.com.

About Sunburst Technology
Sunburst Technology, a division of Houghton Mifflin Company, distributes technology products to over 100,000 schools in the United States and Canada. Through its Software and Health and Guidance Divisions, Sunburst publishes award-winning instructional software and videos for the K-12 school market, as well as original multimedia products and digital adaptations of Houghton Mifflin books for schools and families. Sunburst Technology's web sites include www.sunburst.com and www.hyperstudio.com.

Since 1985, Educational Resources (www.educationalresources.com) has provided educators and schools with the tools and services necessary to achieve their instructional technology goals. As the nation's largest source of educational technology, hardware, accessories and other computer peripheral devices, the company serves educators throughout the United States and Canada. Educational Resources represents more than 350 vendors with over 5,000 educational products.

About Houghton Mifflin Boston-based Houghton Mifflin Company, a unit of Vivendi Universal Publishing (the third leading worldwide publisher), is one of the leading educational publishers in the United States, with over $1 billion in sales. Houghton Mifflin publishes textbooks, instructional technology, assessments and other educational materials for elementary and secondary schools and colleges. The Company also publishes an extensive line of reference works and award-winning fiction and non-fiction for adults and young readers. Houghton Mifflin offers computer-administered testing programs and services for the professional and certification markets. With its origins dating back to 1832, Houghton Mifflin today combines its tradition of excellence with a commitment to innovation. The Company's web site can be found at www.hmco.com.