For Immediate Release

Gryphon Investors Acquires Update Legal in Partnership with Management

San Francisco - May 26, 2005 - Gryphon Investors, a San Francisco-based private equity firm, announced that it has completed the acquisition of the majority of the stock of Update Legal, the nation's leading independent provider of temporary legal professionals to law firms and corporate clientele. The current management team will remain in place and will retain a significant ownership stake in the company. Gryphon plans to support the company's continued expansion through the proactive pursuit of new office openings and selected add-on acquisitions. Terms of the transaction were not disclosed.

Founded in 1970 and based in New York City, Update Legal delivers services to many of the largest law firms in the country, as well as Fortune 500 corporate clientele through a national network of nine offices in distinct major metropolitan markets. Update Legal's principal business is providing attorneys, paralegals and litigation support professionals on a temporary basis. In addition, the company has established a newer business of providing temporary graphics professionals to advertising and corporate clients, while also placing legal and graphics professionals with clients on a permanent basis.

This investment is the second made by Gryphon in the professional staffing services sector and the first in the legal staffing field as part of Gryphon's proactive investment initiative in the professional staffing industry. In August 2004, Gryphon and Ray Marcy, former Chairman & CEO of Spherion Corporation, acquired Nursefinders, Inc., one of the nation's largest nurse staffing companies and a leading provider of home healthcare services.

"Given the legal industry's increasing trends towards managing staff costs through the efficient use of temporary legal professionals, coupled with the ongoing increases in the volume of complex litigation and rebounding corporate merger activity, Gryphon believes that quality service providers like Update Legal will continue to enjoy high growth" said Nick Orum, Gryphon Partner and head of its Business Services Group. Orum added, "The company's very talented management team has built the largest and most highly-regarded independent legal staffing company in the U.S. Having been able to watch Update Legal's performance closely over the past several years, we are delighted that our proactive initiative has resulted in a win-win partnership with the company's management team and its current shareholders."

CEO Joshua Schott and Update Legal's existing management team will continue to operate the business and retain a significant ownership stake. Schott, who joined Update in 1990, has led the organization since 1992, including its original entry into the legal staffing services market in 1992. Schott said, "This transaction is an excellent fit for our company for several reasons. Gryphon's strategic focus on strong franchises with commitments to quality matches very well with us. Also, Gryphon's financial support and track record for investing in platform companies provides additional opportunities to continue and further accelerate our historically exceptional growth. We are very enthusiastic about the prospects for this new partnership together."

Based in San Francisco, Gryphon Investors focuses on leveraged acquisitions and growth investments in middle market companies in partnership with experienced management. With approximately $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.

Since 1970, Update Legal has placed more than seventy-five thousand professionals on both a temporary and permanent basis. Update Legal operates through nine offices in New York, New Jersey, Boston, Philadelphia, Washington, D.C., Dallas, Houston, Los Angeles and San Francisco. After recent successful expansions in San Francisco and Washington, D.C., the company opened in the past year new offices in Los Angeles and Dallas. In addition, the company intends to continue to expand its newer graphics staffing business based on its strong performance to date.

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