CUSTOM DIRECT INCOME FUND

CUSTOM DIRECT INCOME FUND

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Company Overview
The Fund is engaged in holding and acquiring the shares of common stocks of Custom Direct, which offers cheques, cheque-related accessories, and other products and services directly to consumers across the United States. Custom Direct provides customers with a broad range of products in the industry through several marketing channels including free-standing newspaper inserts, package enclosures, magazines, coupon co-ops and the Internet. The fund was incorporated in the year 2003 and conducts business operations from its registered head office located in Toronto, Ontario, Canada.
The Fund serves as a subsidiary of EdgeStone Capital Fund III (Canada) L.P., one of Canada’s leading private equity firms, that has managed in excess of $2.3 billion of private capital on behalf of institutional and high net worth clients. Its registered head office is based in Toronto, Ontario.
Business Summary
The Company sell cheques and cheque-related accessories directly to consumers through direct marketing and the internet.
Description and history
Based in Maryland and Arkansas, the Company is the second largest participant in the U.S. direct-to-consumer segment of the check market and had sales of $102.9 million for the year ended December 31, 2002. The Company increased its market share of the direct-to-consumer segment, as measured by total order volumes, from less than 10% in 1997 to approximately 21% in 2001. This increase in market share has been achieved through acquisitions and by providing customers with the broadest product offering in the industry through several marketing channels including free-standing newspaper inserts, package enclosures, magazines, coupon co-ops and the Internet. The Company has a customer database of over 22 million customers, approximately half of whom placed orders within the last two years.

Formerly known as The Check Gallery, Inc., the Company was founded in 1992 with a majority investment from Canada’s then largest check printer, Davis + Henderson Ltd., to market personal and business checks directly to consumers. The Company has built its reputation on the quality and the environmental friendliness of materials used in the manufacture of its products. In 1996, Davis + Henderson Ltd. and the Company became part of the Secure Transactions Division of MDC, a publicly traded international business services organization. Since 1996, the Company’s customer base and product offerings have grown through internal growth and acquisitions such as the acquisitions of Image Checks Inc., Artistic, Custom Direct, Inc. and Styles Checks. As a result of these and other acquisitions, the Company has ten distinct brands – Artistic Checks, Check Gallerys, Image Checks, Identity Checks, Classic Checks, CheckCrafters, Life Checks, Message Products, Unique Productss and Styles Check Companys – which permit it to provide customers with a selection of over 380 unique check designs and to target specific niches and customer affinities.

The Company was listed on the Toronto Stock Exchange on May 28, 2003.

Effective June 14, 2007, the Company was acquired by EdgeStone Capital Fund III (Canada) L.P., and was delisted from the Toronto Stock Exchange on June 18, 2007.

Business Line
Engaged in holding and acquiring the shares of common stocks of Custom Direct, which offers cheques, cheque-related accessories, and other products and services directly to consumers across the United States
Subsidiary

Advisor
BDO DUNWOODY LLP
IPO date
5/28/2003
US SIC Code
6211
Company Address
P.o. Box 270
C/o Torys Llp, d Centre
City province or state postal code
M5K 1N2, TORONTO, ON
Phone: +1 4106793300
Fax: +1 4106760950
Country address: CANADA
Website url: www.cdifund.com