NES Rentals Acquired by Diamond Castle Holdings

NES Rentals Holdings Inc., one of the nation’s largest aerial
and general equipment rental and traffic safety service providers, announced on
May 24 that it had concluded its strategic review process and signed a
definitive agreement to be acquired by affiliates of Diamond Castle Holdings
LLC, a New York-based private equity firm. The transaction is valued at
approximately $850 million and includes the assumption of certain
liabilities.

According to NES Rentals chairman and CEO Andrew Studdert, the
implementation of a series of operating and revenue initiatives during the past
two years has improved return on investment.

“After undergoing significant change in recent years, NES
Rentals has emerged as a well-positioned and profitable business,” Studdert
said.

“The progress we have made allowed us to be in a position to
consider options to unlock the value of our company.”

In December 2005, the company’s board of directors retained
Bear, Stearns & Co. Inc. to assist in reviewing strategic alternatives.
Studdert said this review included consideration of a variety of options,
including the sale of the
company.

“When completed, this deal will allow NES Rentals to continue
to meet and exceed the high standards we’ve established for customer service,
quality equipment and financial growth,” said Studdert.

Completion of the sale is expected within 60 days of the
announcement. It is contingent upon customary closing conditions, including
regulatory approvals, delivery of the committed financing and the approval of
NES Rentals’ stockholders. NES Rentals has scheduled a special meeting of
stockholders to vote on the proposed transaction that will be held on June 23.

Studdert has agreed to continue on in his capacity as CEO and
chairman of the board following the completion of the transaction. Diamond
Castle expects to retain NES Rentals’ company name, management team and product
lines.