Clarion Capital Partners, LLC Invests in Oceanaire, Inc.

Clarion Capital Partners, LLC, a New York-based private equity firm focused on middle-market, growth-oriented businesses, announced that it has committed to invest $20.0 million of convertible preferred stock in The Oceanaire, Inc. in a two-tranche transaction, $10.0 million of which was funded in August and the remaining $10.0 million of which is expected to be funded in August 2005.

Oceanaire is an owner and operator of five distinctive seafood restaurants in Minneapolis, Washington, D.C., Seattle, Dallas and Indianapolis. The investment was made through a fund managed by Clarion and will result in it holding a 45.4% stake upon completion of its investment.

Oceanaire is well-positioned to become the nation’s first power seafood dining concept by offering ultra-fresh seafood selections flown in daily from around the world in an inviting, high-energy atmosphere reminiscent of the great seafood supper clubs of the 1930s and 1940s. The concept’s unique appeal lies in its ability to deliver an upscale dining experience consisting of great customer service and premium quality seafood executed in an ambiance that attracts a diverse group of diners for a variety of occasions. The company plans to open additional restaurants in San Diego, Atlanta, Miami and Baltimore over the next 12 months.

“We’re excited to be partners with Oceanaire’s management in their mission to become the nation’s premier upscale seafood restaurant company,” said Eric D. Kogan, Partner at Clarion. “Led by experienced executives with a record of success, Oceanaire’s innovative concept creates an inviting, stylish experience for affluent, health-conscious diners. Oceanaire fits into our objective of investing in innovative businesses with significant growth prospects in sectors in which Clarion can bring relevant experience.”

Terry Ryan, President and Chief Operating Officer of Oceanaire, said, “We’re very pleased to have Clarion as our partner. Our team has been impressed with Clarion’s understanding of our business and strategy, and their ability to provide strategic and operational counsel as we expand our concept to other markets. With this support, we look forward to bringing our distinctive menu of the freshest seafood and a sophisticated, high-energy atmosphere to other markets.”

Clarion was represented in this transaction by its regular outside counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP. The Oceanaire, Inc. was represented by Goldsmith Agio Helms.

Clarion Capital Partners, LLC, is a New-York based private investment firm. The firm invests in the consumer products, business services, specialty retail, specialty financial services and niche media/entertainment industries. Previous and current investments by the professionals of Clarion include the Imax Corporation, All-Clad Holdings, Inc., Snapple Beverage Company, Encore Capital Group, Cascade Entertainment Group, and U.S. Nursing Corporation.

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