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Riverside Agrees to Purchase Shopper Marketing Firm January 24, 2011

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Pareto Corporation Would Be PE Firm’s Second Take-Private Deal

The Riverside Company has signed a definitive agreement to acquire Pareto Corporation (TSX: PTO), a shopper marketing specialist that helps their clients to sell more by creating unique in and out-of-store marketing solutions.

Pareto adds value for its clients by executing memorable and engaging experiences connecting brands, retailers and shoppers before, during and after a sale. The company uses a potent combination of in-store messaging, promotions, merchandising, proprietary technology and incentives to accomplish its goals.

Pareto would mark the ninth Riverside investment in Canada, and the second time Riverside has taken a company private. Riverside’s recently realized investment in The Dwyer Group generated roughly 3x gross cash-on-cash return.

Riverside intends to keep Pareto on its successful path while accelerating growth.

“Pareto is a blue-chip company with an impressive business model that delivers compelling value,” said Riverside Partner Kristin Newhall. “Pareto’s strong management team will stay on board and partner with us as we help Pareto grow. We’re thrilled with this opportunity.”

"The Riverside partnership is a perfect fit for Pareto. Not only are our high performance cultures aligned, we share the same vision for growth." said Kerry Shapansky, President & Chief Executive Officer of Pareto Corporation. "I am looking forward to this new chapter and thrilled about the prospect of this partnership with Riverside. We've been successful in becoming Canada's leading shopper marketing company, and the growth capital and thought leadership Riverside provides will enable our continued success."

Working on the transaction with Newhall from Riverside are Scott Bogard, Vice President; Bill DeLong, Associate; Neil Kee, Analyst; Solomon Cole, Analyst, David Gold, Operating Partner; and Robert Landis, Partner.

The transaction is subject to shareholder approval and is expected to close by March 31, 2011.

The Riverside Company
The Riverside Company is a global private equity firm focused on acquiring growing enterprises valued at up to $200 million (€200 million in Europe). The firm partners with strong management teams and enhances its investments through acquisitions and organic growth. Since its founding in 1988, Riverside has invested in more than 245 transactions with a total enterprise value of more than $5.8 billion/€4.7 billion. The firm’s portfolio in North America, Europe and the Asia-Pacific region includes 74 companies with roughly 13,000 employees. Riverside completes acquisitions smoothly thanks to $3.2 billion/€2.4 billion in assets under management, more than 195 professionals in 19 offices, and longstanding relationships with partner lenders.

Pareto Corporation
Pareto Corporation is a Shopper Marketing company that offers marketing execution solutions to leading companies in a broad range of industry sectors. Pareto provides measurable, quantifiable services that complement our clients’ marketing and sales departments.

For further information on Pareto, contact:
Kerry Shapansky, President and Chief Executive Officer, Pareto Corporation, 416-790-2350
Karen Trudell, Chief Financial Officer, Pareto Corporation, 416-790-2360
Glen Williams, Investor Relations, Equicom Group, 416-815-0700 ext 272

Riverside Media Contacts

North America and Asia Pacific
Graham Hearns
Director of Marketing and Communications
The Riverside Company
216-535-2221

Europe

Pablo FuenteAssistant Director of Marketing and Communications
The Riverside Company
+32 47485911

Media Contact

Stephanie Fraser
Marketing Consultant
The Riverside Company
Cleveland: +1 216 344 1267
London: +44 20 3077 1923