Statesman Business Advisors Expands Field Examiner Staff

With the addition of Karla and Mike, Statesman´s due diligence staff has increased to six full-time and three part time persons. Over the past ten years, Statesman´s professional due diligence team has completed over 2,000 separate assignments throughout Texas and in fifteen other states.

Both Karla and Mike have extensive financial services backgrounds and will make an immediate contribution to the growth of Statesman´s due diligence capabilities. Karla´s background includes seven years of commercial banking with Post Oak Bank, Compass Bank, and Frost Bank where she was a VP of Commercial Lending. For the past nine years, Karla has served as CFO of a privately held company. Her bank and lending background, combined with actual operating company experience, provides a solid basis for understanding the complexities of the field review process. Karla is a Cum Laude graduate of the University of Houston with a BBA in Finance.

Mike has an extensive financial background working for both bank and non-bank lenders alike in a variety of capacities including commercial lending, credit approval, and portfolio management. Most recently, Mike was an AVP with JP Morgan Chase Bank with underwriting and due diligence responsibilities. Mikes understanding of the credit approval process and practical experience in monitoring operating credits will allow him to quickly gain an understanding of Statesman´s proprietary due diligence process. Mike earned a BBA degree from the University of Texas at Austin. We are very excited about the addition of both Mike and Karla to our team.

SGS Acquires FTS, Inc.

FTS provides Asset Integrity Management (AIM) including world-class web-based Mechanical Integrity Management systems and services to the oil, gas, and chemical industries in the US and internationally. FTS is recognized as a leader in providing innovative data gathering systems and developing customized software solutions for labor-intensive data management processes and corrosion monitoring programs.

Founded in 1992 and privately owned, FTS has 350 employees in Bartlesville OK, Ponca City OK and Houston TX. This year revenues will exceed US $30 million.

SCP Acquires DeBusk Industrial Group

Located outside Houston, TX, DISC provides a variety of industrial cleaning services for critical equipment within the petrochemical industry. Services provided include hydro-blasting, vacuuming, hydro-cutting, chemical cleaning, and roll-off truck services. DISC presently serves customers in parts of the southwestern and southeastern United States through its nine existing branches located in Texas, Louisiana, and Tennessee.

Jim Wigginton and Mark McCammon will continue to represent Strength Capital on the board of Inland. Strength Capital is excited to be expanding its industrial service group by diversifying into the petrochemical industry. This deal represents the eighth investment for SCP Fund II, and the second add-on acquisition to the Inland platform. Strength Capital Partners is a private equity firm based in Birmingham, MI.

EnterSys Group acquired by Axon Americas

Texas-based EnterSys Group delivers complex SAP solutions for clients across the oil & gas value chain.

“I am excited about the significant opportunities enabled by the addition of strategic acquisition to our existing global Oil & Gas practice. An immediate priority will be to enhance customer value creation by integrating Axon´s market leading Enterprise Asset Management (EAM) capabilities with EnterSys Group´s Oil Field Services tools and solutions as well as giving EnterSys Group clients access to Axon´s world-class off shore development center. I am delighted to welcome the partners and employees of EnterSys Group to Axon Americas.”
Kevin Graybill, Partner of EnterSys Group

Statesman initiated this transaction and served as the exclusive provider of M&A advisory service to EnterSys Group.

Stock Building Supply Acquires ProSource

ProSource Building Supply is a construction services business supplying commercial doors, trim, hardwood, related specialty products and installation services.

In the year ended Dec. 31, 2006, ProSource had revenue of approximately $17 million. The acquisition is in line with Stock´s goal of expanding in the commercial and industrial markets.

Stock Building Supply is a company of Wolseley plc (NYSE: WOS), a global distributor of plumbing and heating products as well as building materials.

Community Bank System Expands Benefits Administration Business

BPAS provides daily valuation, actuarial and employee benefit consulting services on a national scale, with offices in Upstate New York and Pittsburgh. With the addition of HBT and its operating subsidiaries, BPAS will enhance its service offerings in flexible spending account and collective investment fund administration services.

“This transaction represents a very attractive opportunity for us,” said Community Bank System President and Chief Executive Officer, Mark E. Tryniski. “Our benefits administration business has been, for many years, the most profitable and fastest-growing of all our financial services businesses. It has posted double-digit revenue increases for nine consecutive years, and currently accounts for more than 60% of our total financial services revenue. One of its most attractive attributes is that it´s not limited to the general footprint of our New York and Pennsylvania banking franchises, and presently serves clients in 32 states and Puerto Rico. The addition of HBT will clearly enhance our geographic diversity and service capabilities, further allowing BPAS to continue its impressive record of growth and profitability.”

The acquisition will give BPAS revenues of more than $20 million, and administration of over 140,000 defined contribution and flexible spending participant accounts with nearly $3.0 billion in assets under custody. It will also be additive to the Harbridge Consulting Group subsidiary of BPAS, which is the largest actuarial services practice in the state of New York, outside of metro-New York City. The transaction, which is subject to certain regulatory approvals, is expected to close during the second quarter.

Barry S. Kublin, President of BPAS added, “This acquisition will add valuable capacity to support our growing client base, and allow us to provide additional services to our clients and distributor partners. It will strengthen our organization, because HBT operates in a dynamic labor and business region, and is a highly respected employee benefit and trust company that has served its customers for 68 years.”

“I am excited about the expanded opportunities that the combined company will bring to the market place for both our clients and employees,” said David Hand, President of HBT. “BPAS is an ideal partner for us. I´m very familiar with their management team, and look forward to joining this group that has demonstrated product leadership, superior financial performance and exceptional customer service.”

Community Bank System, Inc. (NYSE: CBU) is a registered bank holding company based in DeWitt, N.Y., with approximately $4.5 billion in assets and more than 130 customer facilities. Its wholly-owned banking subsidiary operates as Community Bank, N.A. across Upstate New York, and as First Liberty Bank & Trust throughout Northeastern Pennsylvania. Its other subsidiaries include: BPA-Harbridge, which provides daily valuation, actuarial and employee benefit consulting services from offices in Upstate New York and Pittsburgh; Community Investment Services, Inc., a broker-dealer delivering financial products throughout the company´s branch network; and Nottingham Advisors, a wealth management and advisory firm with offices in Buffalo, N.Y., and North Palm Beach, Fla. For more information, please visit our websites at: or

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The following factors, among others, could cause the actual results of CBU´s operations to differ materially from CBU´s expectations: the successful integration of operations of its acquisitions; competition; changes in economic conditions, interest rates and financial markets; and changes in legislation or regulatory requirements. CBU does not assume any duty to update forward-looking statements.

SOURCE: Community Bank System, Inc.