COMPANY BACKGROUNDER - Najafi Companies

Sector: Private Equity
COMPANY BACKGROUNDER
Investment Target: Mid-Market U.S. based growth companies
Business Summary: Najafi Companies acquires mid-market companies with significant
growth potential in various market segments within the United States. The Najafi
Companies analyzes businesses based on their potential for long-term growth and
market leadership. These companies are managed by world-class management
teams and have the potential through organic growth and acquisitions to be
industry leaders within five to ten years.
Najafi Companies identifies under-valued companies and industries, and employs
capital infusion to fulfill growth initiatives, develop product brand identity, and
establish sustainable competitive advantage. The acquisition philosophy is driven
by significant research and evaluation to identify businesses that have the potential
for superior long-term financial performance.
Executive Team: Jahm Najafi, Chief Executive Officer
Peter Woog, Partner
Jerry Pence, Partner
Tina Rhodes, Chief Financial Officer
History: Najafi Companies (previously Pivotal Private Equity) has been in
business since 2003 and operated as a division of the real estate investment
company, Pivotal Group.
Operating Investments: Najafi Companies presently has two operating investments - Network Solutions
and Wellements. Virginia-based Network Solutions was acquired in 2003.
Network Solutions is the original domain name registrar and is now the leading
web based solutions provider for web hosting, web site design, online marketing,
e-commerce, e-mail and more. Post acquisition, Network Solutions has acquired
Inquent and MonsterCommerce.
Wellements, an Arizona-based company was acquired in late 2004. Wellements is a
nutritional supplements company that specializes in premium branded nutritional
and organic products distributed worldwide by a variety of online and retail
outlets.
Capital Investments: Najafi Companies’ capital investments include NXTV, an innovative supplier of
DSL-driven digital and entertainment solutions to the luxury hotel market. Najafi
Companies’ also makes real estate investments. These include WestWing
Mountain, a 1,312-acre master-planned community in Peoria, Ariz.; The Ranch
Club in Park City/Deer Valley, Utah; Cimarron Hills Golf & Country Club in
greater Austin, Texas; Esplanade Place, a luxury residential high-rise in Phoenix;
Century Plaza Hotel & Spa and the St. Regis Hotel in Los Angeles; the Ritz-
Carlton Phoenix; Red Mountain Spa in Southern Utah; and 650 California Street in
San Francisco’s financial district.
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Biography
Jahm Najafi, Chief Executive Officer, Najafi Companies
Mr. Najafi has been the CEO of Najafi Companies and its predecessor, Pivotal Private Equity, since 2002.
He was a partner and COO of Pivotal Group from 1990 to 2002. He worked at Salomon Brothers
Investment Banking, now a division of Citigroup, from 1986 to 1990.
Mr. Najafi earned his Masters in Business and Economics from Harvard University after earning his B.A.
in Economics and Political Science from the University of California, Berkeley. He is active with the
Young Presidents’ Organization, Urban Land Institute and serves as a trustee on the Board of Phoenix
Country Day School. Additionally, he has served on Arizona State University’s Committee for Design
Excellence, the Board of Directors for the Phoenix Symphony and Phoenix Metropolitan Area
Convention and Visitors Bureau as well as other civic organizations. He is a founding partner of Social
Venture Partners Arizona, which is a pooled, philanthropic fund that “invests” in emerging nonprofit
organizations in a manner analogous to a venture capital fund investing in an emerging business. The
partners support this innovative, entrepreneurial philanthropy model by making a financial commitment
and contributing management expertise to the nonprofit “investees.”
Mr. Najafi received the National Conference for Community and Justice (“NCCJ”) 2001 Humanitarian
Award. He was recognized twice by The Business Journal-Phoenix: in 1998 as one of the “Valley’s Most
Influential” individuals and in 2001 as one of the most influential business leaders under the age of 40,
receiving their “Top 40 under 40 Award.”

Biography
Peter A. Woog, Partner, Najafi Companies
As a Partner at Najafi Companies, Mr. Woog seeks and evaluates acquisition opportunities, participates in
the negotiation and due diligence process and assists the management of the acquired company during the
post sale period. Mr. Woog also works closely with currently held companies for strategic, business and
financial planning.
Mr. Woog was with AT&T for over three decades, rising to Vice-President. In 1995, he became the Chief
Executive Officer and a Director of Cable Systems Holdings and Cable Systems International when
CitiCorp Venture Capital acquired the copper cable products division from AT&T. This portfolio
company then acquired a number of closely-held as well as publicly-traded communications companies.
During this period he also was a director of IPC Communications, IXNET, and LoDan Electronics.
Following the sale of these businesses he established Gray Fox Enterprises, a management consultant
firm, where he assisted corporate managers and investors with business strategies and execution. Among a
number of assignments, he was CEO of International FiberCom and led the restructuring and sale of this
company.
Mr. Woog holds a B.S. in Mechanical Engineering from Lowell Technological Institute (University of
Massachusetts-Lowell) and a Master of Science in Management Science from Stevens Institute of
Technology. Since 1993, he has served on the Board of Directors of the Arizona Science Center, including
his role as Chairman of the Board for two years. He also chairs the Governor’s CANAMEX Task Force
and is Arizona’s private sector representative to the CANAMEX Corridor Coalition, a five state panel
committed to improving infrastructure and trade in the region.

Biography
Jerry Pence, Partner, Najafi Companies
As a Partner for Najafi Companies, Mr. Pence is responsible for identifying and evaluating acquisition
opportunities, leading due diligence investigations, and executing purchase documentation. Mr. Pence also
focuses on capital raising and strategic activities for existing portfolio companies as well as potential
acquisition targets.
Prior to joining Najafi Companies, Mr. Pence worked for the Boston Consulting Group Los Angeles
office, focusing on the financial services, energy, and consumer goods industries. From 1995 until 1999,
Mr. Pence worked for Merrill Lynch in Mexico City and Lehman Brothers in New York City, where he
executed mergers and acquisitions as well as capital market transactions. He earned a B.A. in Economics
and Latin American Studies from Yale University and an MBA from Stanford University.
Mr. Pence has worked in Argentina and Brazil and is fluent in three languages.

Biography
Tina Rhodes, CPA, Chief Financial Officer, Najafi Companies
As Chief Financial Officer of Najafi Companies, Ms. Rhodes works closely with the executive team to
manage the Company’s finance and business risk functions.
Prior to joining Najafi Companies, Ms. Rhodes held positions of increasing responsibility, including VP,
Operations and VP, Finance with Morrison Homes. She was responsible for the management of finance,
purchasing, customer service and the compliance departments. Previously, she was VP of Finance for
LeapSource, a start-up finance and accounting outsourcing company, and the Director of Accounting for
Starwood Hotels and Resorts where she was responsible for all regulatory reporting and compliance,
oversight of all of the publicly traded securities of Starwood and the integration of acquisitions. She began
her career with Arthur Andersen where she advanced to manager of audit and business advisory services.
A native Arizonan, Ms. Rhodes graduated with a Bachelor of Science in Accounting, Summa Cum Laude,
from Arizona State University. She is a Certified Public Accountant and member of American Institute of
Certified Public Accountants and Arizona Society of Certified Public Accountants.

FOR IMMEDIATE RELEASE
NAJAFI COMPANIES REPOSITIONS FOR GROWTH
LAUNCHES AS AN INDEPENDENT FIRM
Phoenix, Arizona (April 4, 2006) – Najafi Companies, formerly Pivotal Private Equity and a part of the Pivotal
Group, announced today its launch as an independent company. Founded in 2002 as a division of Pivotal Group,
Najafi Companies will now operate as a separate entity from Pivotal Group.
“This move will better position us to pursue exciting growth opportunities, and attract and retain the most
talented investment professionals,” said Jahm Najafi, CEO of Najafi Companies. “We will continue to take a
long term approach in nurturing and growing our investments.”
Najafi Companies’ investment team includes: Peter Woog, the former CEO of Cable Systems Holdings, a
division of AT&T that was acquired by CitiCorp Venture Capital; and Jerry Pence who joined the company
from the Boston Consulting Group. Patrick Smith, the CFO of Najafi Companies previously served as the
Director of Finance and Treasurer for AAA of Arizona.
Najafi Companies is a private investment firm based in Phoenix, Arizona. The firm makes highly-selective
investments up to $2 billion in size in companies with strong management teams across a variety of industries,
and often in industries out of popular favor. The firm takes a long-term view on its investments and focuses its
efforts to create value through growth and superior performance. Najafi Companies funds investments with its
principals’ capital, not through a fund. Free from the restrictions of a fund, the firm is able to move quickly and
decisively when investing, and with no requirements to return capital to outside partners, Najafi Companies is
able to make investments that create maximum value for the long term. For more information about Najafi
Companies, visit www.najafi.com.
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Media Contact: Anne Robertson
The Lavidge Company
480.998.2600 ext. 537
arobertson@lavidge.com