For Immediate Release

Gryphon Investors, through Gryphon Colleges Corporation, acquires Delta Educational Systems

San Francisco - May 15, 2006 - Gryphon Investors announced today that it has completed the acquisition of Delta Educational Systems (Delta) through Gryphon's post-secondary education platform, Gryphon Colleges Corporation (GCC). Terms of the deal were not disclosed.

Delta operates 16 accredited career colleges located in Georgia, Louisiana, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee and Virginia. The schools offer students courses in allied health, business, cosmetology, information technology, legal, and vocational trades through five well-established regional brands, Career Technical College, The Creative Circus, McCann School of Business & Technology, Miami-Jacobs Career College and Miller-Motte Technical College. McCann, Miami-Jacobs and Miller-Motte have each been providing students with high quality education for over ninety years.

Gryphon Colleges Corporation was formed at the end of 2004 by Gryphon Investors through the acquisition of National Career Education (NCE), a four campus school company located in Arizona and California. Together Delta and NCE include 20 campuses providing education to approximately 7,000 students. "The acquisition of Delta establishes GCC as one of the leading private companies in post-secondary education. Based on our executive partners' excellent credentials, as well as discussions with numerous private companies, we are optimistic about GCC's prospects for organic growth and future acquisitions," said David Andrews, founder and Managing Partner of Gryphon Investors.

Nick Orum, Gryphon Partner and head of its Business Services Group, stated, "The acquisition of Delta continues Gryphon's multi-year proactive investment initiative in post-secondary education. Moreover, it builds upon Gryphon's work elsewhere in the broader human capital management sector, including corporate training and professional staffing."

Joe Kennedy, founder and CEO of Delta Educational Systems, will continue to lead Delta and will also become the Chief Executive Officer of GCC. Mr. Kennedy has over 30 years of experience in proprietary post-secondary school ownership and management, and he will be joining forces with Nolan Miura and Joe Fox, executives of GCC who previously held senior management positions with Corinthian Colleges Inc. Mr. Kennedy stated, "We were approached by many potential partners and chose Gryphon and GCC because of their successful track-record of building businesses and partnering with management teams. I am particularly excited about the opportunity to work together with Nolan Miura and Joe Fox, both of whom have excellent reputations in the post-secondary education industry."

Based in San Francisco, Gryphon Investors focuses on leveraged acquisitions of and growth investments in middle market companies in partnership with experienced management. With more than $700 million of equity capital under management, Gryphon typically seeks to invest $25 to $75 million of its own capital in companies with sales ranging from $25 to $250 million. Gryphon prioritizes investment opportunities where it can form proactive partnerships with owners and executives to build leading companies, utilizing Gryphon's capital, professional resources and significant financial and operational experience.

Contact:
Lisa Baker
Owen Blicksilver Public Relations, Inc.
516-742-5950
lisa@blicksilverpr.com