COSTA MESA, Calif. - October 27, 2004 - Hi-Tech Rubber Inc., an Anaheim, Calif.-based portfolio company of Red Diamond Capital, has acquired A.C. Hoffman Engineering Inc., of Riverside, Calif. Transaction terms were not disclosed.

RSM EquiCo Capital Markets initiated the transaction, led the negotiations and acted as the exclusive financial advisor to A.C. Hoffman Engineering, Inc.

"The acquisition will provide Hi Tech Rubber with opportunities for growth," said Randy Krauthamer, managing director for RSM EquiCo Capital Markets. "In addition to acquiring new manufacturing technology and additional customers, Hi Tech Rubber will receive A.C. Hoffman Engineering's work force, enabling the company to satisfy increasing demand for its products and services."

About A.C. Hoffman Engineering Inc.

Founded in 1964, A.C. Hoffman Engineering molds rubber components for medical and commercial industries. The privately held company tests materials, develops compounds, creates designs and produces prototypes and products. A.C. Hoffman Engineering serves the medical industry by manufacturing valves, diaphragms, seals, and closures for use in medical applications. The company also produces components for the irrigation, food, automotive and electronic industries.

About Hi Tech Rubber Inc.

Founded in 1982, Hi-Tech Rubber molds rubber into components for medical, technological and industrial industries. The company formulates and develops its own materials and offers an array of production processes.

About Red Diamond Capital

Formed in 2002, Red Diamond Capital is an independent $150 million private equity fund that invests in middle-market manufacturing, distribution and service businesses in North America. Through its partnership with Mitsubishi Corporation, Japan's leading trading company, Red Diamond offers an unusual mix of strategic resources, industry-focused capital, and management expertise to fuel the growth of its portfolio companies.

About RSM EquiCo, Inc.

RSM EquiCo is a global investment bank serving private middle-market companies throughout North America. With more than 400 professionals and support staff in North America and Europe, RSM EquiCo specializes in mergers, acquisitions, divestitures and capital raising for companies with up to $500 million in annual revenue. The firm is part of RSM McGladrey Inc., a business segment of H&R Block.