COMMUNICATIONS SUPPLY CORPORATION

Corporate Biography

Summary Statement

Communications Supply Corp. (CSC) began in 1972 as an independent distributor servicing the telecommunications industry. Founder Nick Ohnell expanded beyond the New England market by investing in start-up operations throughout the US. By 1996, CSC had grown to seven sales offices and warehouses each being managed independently to provide superior service to their respective regions.

The distribution market began to consolidate in mid-1990. Nick realized that to stay competitive, he was going to have to acquire or be acquired; he chose the latter. CSC was purchased in December 1996 by an investor group, UBS Capital Partners, LLC, New York N.Y., led by newly appointed president, CEO and investor, Steve Riordan. In addition, several members of the CSC management team were part of the investor group. The group’s objective was to create a nationwide distribution network with strategically located branches that had the ability to provide whole order delivery anywhere in the U.S. within 24 hours. Marketshare growth would come organically as well as through acquisitions.

Riordan made CSC’s first acquisition, Albuquerque’s Southwest Wire & Cable, in August 1997. The Southwest purchase expanded CSC’s product breadth beyond traditional voice & data products into low voltage specialty system cables such as fire alarm, closed circuit TV, sound, building automation and security. As with future acquisitions, the founders and management teams were kept in tact to aid in future development and growth of CSC.

As a result of Steve’s second acquisition of GNWC Wire Cable & Network Products in December 1997 came David Bemoras, co-founder and Vice President of Marketing at GNWC. As CSC’s Vice President of Sales & Marketing, David’s leadership and creative abilities along with his industry insight provided CSC with the ability to build and present a cohesive message - their value platform and business proposition.

CSC has also attracted top talent from outside of its ranks. Matt Zimmermann, Vice President and CFO came to the company in 2005 with over 20 years of related experience with a majority of his experience being within the distribution industry. Mason Rotelli, Chief Information Officer, brought over 20 years of Information Systems experience to CSC in 1998, including a ten-year run as Vice President of IS at Anixter. CSC’s executive headquarters team was built with people who posses the knowledge, experience, drive, and ability in order to support an emerging national distributor.

The subsequent years brought significant sales and revenue growth to CSC due, in part to expanded product lines that included such leading manufacturers as CommScope (formerly Lucent, then SYSTIMAX® SOLUTIONS) and Corning Cable Systems (formerly Siecor) in addition to the following strategic acquisitions:

The subsequent years brought significant sales and revenue growth to CSC due, in part to expanded product lines that included such leading manufacturers as SYSTIMAX® SOLUTIONS (formerly Lucent Technologies) and Corning Cable Systems (formerly Siecor) and the following strategic acquisitions:

• Southwest Wire & Cable - Low Voltage business (1997, as mentioned above)
• GNWC - Geographic coverage and the Lucent (Avaya) product lines (1997, as mentioned above)
• Diversified Wire & Cable - Midwest geographical coverage and industrial markets (1998)
• Fibertron Corp. - Geographic coverage and fiber optic connectivity and services (1998)
• Computel - Well established distributor in the New York/New Jersey area (1999)
• Premium Technologies, Inc. - Seattle and Virginia areas and Federal Government program (2000)
• CPU - Premier distributor in Maryland, Northern Virginia, and D.C. (2000)
• CALVERT Wire & Cable and it's Famous Telephone Supply operation (2006)
• Liberty Wire & Cable (2006)

On May 4th 2004 Harvest Partners, Inc., a leading New York-based private equity investment firm specializing in management buyouts and growth financings of middle-market companies, had acquired Communications Supply Corporation from UBS Capital II LLC-a five-year commitment that was exceeded by two years.

Today, CSC has over 900 employees, 32 warehouses, more than $90 million in inventory, and 32 sales offices throughout the United States. The company has expanded its vertical market focus beyond private premise networks to include low voltage specialty systems, security & surveillance, government and the public network/service provider market segments. It continues to outpace the industry in sales growth and profitability while providing outstanding service to its customers.

On November 6, 2006, WESCO International, Inc. (NYSE: WCC), a leading provider of electrical MRO products, construction materials, and advanced integrated supply procurement outsourcing services, announced the completion of the acquisition of Communications Supply Corporation (CSC). With the retirement of CSC President Steve Riordan in August of 2008, WESCO appointed David Bemoras to the position of President of CSC. David’s 26 years of industry experience along with WESCO’s support and resources will continue to be a catalyst for further growth.

Company Drivers

CSC examined the industries best practices and examined the fiercest competitors in the market— premier local independent distributors. Local independent’s operated with a family business environment and were very close to the ownership decision-making circle and had the ability to move quickly and drive change to meet customer requirements 24x7, beef up inventories, and deal directly with suppliers. The challenge to CSC was to integrate this high-spirited energy and independence into a larger environment where operational economies of scale and back office support could provide a unique model for growth and profitability. Implementing a matrix management style, CSC re-deployed several managers and recruited several key executives with world-class distribution backgrounds.

Corporate management is kept to a minimum. Traditional shortcomings of the small independent such as national vendor relations, marketing, accounts receivable, human resources, legal, general accounting and systems management are facilitated by a small staff in its Carol Stream, IL. Headquarters. Like their branch manager counterparts, department heads are given the authority and accountability to meet the company’s objectives and are paid based upon individual and company performance. They also participate in the equity and employee stock plans. This unique structure has allowed CSC to enjoy the benefits of a large corporation without energy loss in the field. CSC is believed to have the highest retention levels of sales and management staff in the industry

At the 10-year mark of the business plan, the results have been outstanding: Ten acquisitions including Communications Supply Corp., eight branch startups, a new corporate headquarters and relocations representing, in the aggregate, over 1 million square feet of localized warehouse space and inventories. CSC significantly outperforms its larger public competitors in the areas of operating margins and financial returns.

CEO/Management Leadership Statement

CSC’s management team is made up of a hand-selected group of people from within the distribution industry. They must have bandwidth, spirit and experience to lead a large group of entrepreneurs and earn their respect in a short period of time. CSC is not just about the sales numbers, the true success of a management team comes from its ability to attract and retain key personnel. Ninety-six percent of the managers and owners of CSC and its acquired companies are still with the company. CSC employees see their positions as careers and their work life as an extension of their family life. Excluding clerical and warehouse staff, the average employee has more than thirteen years of service with the company which is remarkable when compared to the amount of time the original companies have been in business. CSC’s business values and management beliefs are best summarized as follows:

• Provide superior customer service.
• Treat suppliers like our best customers.
• Deliver measurable value to customers and suppliers.
• Hire competent employees and invest in them
• Pay for performance
• Live and work ethically
• Contribute to an enjoyable work environment...and have fun!

Focus & Execution

Unlike CSC’s competitors, its branch managers are responsible for their branch profitability. Personnel, inventory levels, operations, pricing, market focus and sales all fall within the manager’s purview. Similar to the local independent distributor, they have a significant stake in each day’s performance. Typically, a branch manager’s overall compensation is derived from the net profitability of the location; CSC’s managers are accustomed to this type of compensation because many of the branch managers are founders of smaller companies that were acquired. In addition, all key managers have an ownership stake in the company through participation in direct stock ownership and a key employee stock option plan.

Business Strategy

CSC’s overall sales growth strategy is to focus on customers that possess specific key attributes such as growth companies who are well managed, well capitalized, and have a high level of consumption of CSC’s core products.

By the nature of the business, CSC commands sales diversification due to diverse product areas, applications, and support. CSC has an edge over their competition by ensuring that each of their branches has aligned their salesforce with a vertical market orientation that delivers specialization vs. generalization; they have hired over one hundred experienced sales professionals in the past two years. CSC continues to invest in the necessary resources for continued growth in the areas of product management, national accounts, operations, training and marketing.

In addition to its organic growth strategy and when it makes good business sense, CSC will continue to evaluate companies where there is a synergy of geography, market verticals, product lines, culture and operational excellence. Past acquisitions have always been highly successful operations that were looking to take their organizations to the next level through the support of corporate operations, accounting, marketing and access to the depth and breadth of a diverse product line. A significant strength of CSC is that all acquisitions have not impeded their ability to achieve industry-leading growth levels from its core business units.

Other areas for growth include the implementation of technology within the corporation that enables internal efficiencies and a high level of service for its key customers. CSC has implemented specific e-Business tools that support the growth of their top technology-focused customers. These tools improve the speed and accuracy of the supply chain between the customer, CSC, and suppliers - CSC will continue to develop and enhance customer-specific e-Business tools for their high-growth accounts.

Our Value to Customers

Along with driving solution specifications, CSC delivers a value proposition consisting of the following key elements:

• World-class infrastructure solutions
• Nationwide distribution network
• Product Sourcing
• Single-source of Supply
• Training and Education
• Project Management
• Customized Local Inventory
• Knowledge and Experience at All Company Levels
• Whole order delivery
• Cable cutting
• Pick, Pack, and Kitting
• Project staging
• Summary invoicing

Corporate Overlay Team

A corporate overlay team supports the field sales organization that provides a number of value-add services that can handle virtually all aspects of the customer sales cycle. This team enables CSC’s specialized salesforce do what they do best - sell. Some examples of the corporate services are:

• Product sourcing and lead times
• Order expediting
• Implement delivery and logistics programs
• Technical support and proposal generation
• Senior level team selling

Product Management

CSC’s significant growth over the past couple of years in terms of revenues, sales locations, and suppliers, signaled the need to develop a more cohesive business unit that focuses on product management. Product Management Team objectives are to increase sales, reduce costs, foster relationships, and create organizational efficiencies in an entrepreneurial and decentralized business environment.

Seventy-percent of CSC’s business is derived from products that are manufactured by approximately twenty-five key suppliers; the other thirty-percent of the business come from hundreds more. Product management’s objective is grow the key suppliers business faster than that of the market’s while implementing a supplier rationalization program that identifies other suppliers that can contribute significantly to CSC’s growth strategies. Product and service strategies include:

• Increase sales by strategic supplier and inventory management and planning
• Maximize profitability through effective management of costs, supplier terms, and inventories
• Reducing costs by negotiating favorable supplier contracts and operational efficiencies
• Fostering relationships by a centralized means for communication, problem resolution, and planning
• Creating organizational and information systems efficiencies

Social Responsibility & Community Participation

Corporate Contributions

• American Cancer Society
• American Heart Association
• Contributions to local charities and community causes

Local Contributions

• CSC “Give Something Back Program”
• Feed The Hungry Programs
• Thanksgiving Day Turkey Contributions
• Toys For Tots Program