News Releases

FOR IMMEDIATE RELEASE

MRO Direct Secures $2 Million in Capital Round Closing
Expands Board of Directors to Seven

(PITTSBURGH, PA - March 16, 2004): MRO Direct, Inc., a Pittsburgh-based strategic sourcing and procurement services company, today announced the closing of a $2 million capital round, of which almost $1.9 million is actually invested or committed.

According to Don Belt, President, CEO, MRO Direct, the resources will be used to fund working capital until an operating profit is generated (projected in the second half of 2004) and to invest in technology to enhance the current e-commerce platform.

Investors include: C&L Venture Fund V; PA Growth Fund; Calumet, Ltd; Pribanic & Pribanic; iNetwork, LLC; Gefsky and Lehman Investment Partnership IV; MRO Direct, Inc. management; Socius Partners, LLC; and RainMaker Capital, among others.

"This capital round will enable MRO Direct to add new customers and set the technology foundation for our significant growth plans, which reflect sales exceeding $200 million in 2007 and more than 130 employees worldwide," said Belt.

Major MRO Direct customers include TRW Automotive (Detroit) and Valspar Corporation (Minneapolis). The company currently employees 18 individuals and projects $20 million in 2004 sales.

MRO Direct will add four to its Board of Directors:

These individuals join existing Board members: DeWayne Tuthill, representing original MRO Direct stock holders, Brent Fitch, representing MRO Direct management, and Don Belt, representing MRO Direct management.

"The Commonwealth congratulates MRO Direct for closing a $2 million capital round," said Dennis Yablonsky, Secretary of the Pennsylvania Department of Economic and Community Development. "This innovative company is creating jobs for Pennsylvanians and showing significant signs of growth and success."

In October 2003, MRO Direct received a $460,000 package of grants, low interest loans, tax credits, and training funds from the Commonwealth of Pennsylvania. Mr. Yablonsky described MRO Direct as a "Gazelle" … a company that was moving aggressively and fast to respond to the market need of making U.S. manufacturing plants more productive.

About MRO Direct, Inc.
MRO Direct provides sourcing and procurement processes designed to generate both hard cost savings (greater than 20%) and process savings in order to generate the lowest total procurement cost solution for purchasing MRO (i.e. Maintenance, Repair, and Operational) supplies. MRO Direct has a unique business model in the MRO Distribution Industry in that the emphasis is placed on taking hard costs out of the supply chain through disinter-mediation of local distributors, aggregating demand, and standardization of items. The MRO Industry is $225 billion, and growing at more than 5 percent per year. MRO Direct is currently expanding its headquarters in Pittsburgh, reflecting both current and expected growth in its number of employees. Other offices are located in Detroit, Michigan and London, Ontario. For more information, please visit www.mrodirectnet.com.

For more information on MRO DIRECT contact Don Belt at 412-481-7330 ext. 14 or visit www.mrodirectnet.com

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Copyright © 2004 MRO DIRECT, Inc.