Azalea Capital Sells Spartan Foods of America, Inc.

December 21, 2009: Azalea Capital is pleased to announce the recent sale of Spartan Foods of America, Inc. (Spartan Foods). Spartan Foods, with approximately 200 employees, is headquartered in Spartanburg, SC, and was an investment in The Azalea Fund II, L.P.  Spartan Foods was sold to Linsalata Capital Partners, a private equity firm based in Mayfield Heights, Ohio. Azalea’s original investment in Spartan Foods was made in March 2005, in partnership with the Company’s President and Founder, Tom Baliker, who will remain with the Company. The Azalea Fund II, L.P. realized a return of 6.25 times its invested capital on this investment.

Spartan Foods manufactures and distributes gourmet pizza crusts and ready-made pancakes, both of which are sold under the Mama Mary’s® brand name throughout some 20,000 retail locations across the U.S. The Company also manufactures and distributes a premium line of frozen retail pizzas under the Mystic Pizza® brand name. Tom Baliker, President and Founder of Spartan Foods, stated, “While we are extremely excited to partner with Linsalata Capital Partners and look forward to the future growth opportunities they will provide, we would not be in a position to take this next step had we not partnered with Azalea Capital over the past 4 years. Azalea assisted us with the financial resources and the strategic direction that our Company needed and enabled us to reach goals that we could only dream of on our own. While they allowed the management team to run the day-to-day business, they were always there with moral support, capital resources, and sound judgment and wisdom when needed. I highly recommend them to any business that needs capital, strategic discipline, and insight to execute their growth plans.”

Azalea Capital is actively seeking new investment opportunities for its third partnership, The Azalea Fund III, L.P. For questions or more information about Azalea Capital, please visit www.azaleacapital.com or contact Pat Duncan.