Wasserstein Exits Encompass Digital Media Investment

Encompass Digital Media Receives Significant Equity Investment from Court Square Capital Partners

LOS ANGELES – December 13, 2011 – Encompass Digital Media, Inc., a U.S. based digital media services provider, announced today that it has entered into a definitive agreement with Court Square Capital Partners, a leading private equity firm, under which funds managed by Court Square will acquire a majority interest in the company from selling shareholders including Wasserstein & Co. L.P. This investment will allow Encompass to continue to expand the range of services and the geographical coverage that it provides to its customers. Under the leadership of Simon Bax and Bill Tillson, the existing management team will remain in place and partner with Court Square to drive the next phase in the company’s expansion. Financial terms of the transaction were not disclosed.

“Encompass is committed to providing our clients with best-in-class services including: network origination and transmission; emerging digital applications; disaster recovery; and occasional-use transmission and backhaul for news, sports and government services,” said Bill Tillson, Encompass’ President and COO.

Simon Bax, Encompass’ CEO stated, “We have significantly improved and expanded our business since 2008 through our partnership with Wasserstein & Co, growing from our original facility in Los Angeles to a global company with substantial additional operations in Atlanta, New York, Stamford, London and Singapore. We are confident Court Square will enable us to continue to build upon our strong platform and to seize significant opportunities to provide more value to our customer base by entering new markets and expanding our services.”

“Our investment in Encompass has been one of the most successful in our firm’s history and we wish the Encompass team continued success. Encompass has executed its strategic plan superbly and has created the preeminent provider of outsourced broadcast services,” said Ellis Jones, Chairman of Wasserstein & Co. “Court Square is uniquely positioned to help the company build on its achievements and continue to offer world-class services to its clients.”

Macquarie Capital is serving as the exclusive financial advisor to the Company. Munger, Tolles & Olson LLP served as primary legal advisor. The transaction is subject to customary closing conditions, including regulatory clearances, and the transfer of certain FCC licenses. Subject to fulfillment of these conditions, the transaction is expected to close in the first quarter of 2012.

About Encompass Digital Media, Inc.
Encompass, a leader in digital media services, owns and operates state-of-the-art, broadcast facilities throughout the United States, United Kingdom and Asia. The company’s mission-critical, media services provide broadcasters, cable networks, corporations and government entities with customized solutions for the management and distribution of content. With global access to large satellite and fiber footprints, Encompass has 24/7/365 Teleport facilities and technical personnel in Los Angeles, CA; Atlanta, GA; New York, NY; Stamford, CT; Lino Lakes and Minneapolis, MN; Burbank, CA; London, U.K.; and Singapore.

The company employs unparalleled expertise through its full range of service offerings such as network origination; centralcasting; cable neighborhood platforms; disaster recovery; satellite and fiber transmissions (full time and occasional use); a fleet of satellite uplink trucks; digital media encoding services; digital file transfers via satellite, fiber and IP; emergency communications; governmental SATCOM; production studios; and video production services. Learn more about Encompass at www.encompass-m.com.

About Court Square Capital Partners
Court Square is one of the most experienced teams in the private equity industry. Since 1979, the team has made over 200 investments including several landmark transactions and has developed numerous businesses into leaders in their respective markets. Based in New York, NY, Court Square invests in companies that have compelling growth potential. The Firm manages over $3.5 billion in aggregate capital commitments while focusing on the following four sectors: business services, general industrial, healthcare and technology/telecommunications. For more information please refer to the Court Square website at www.courtsquare.com.

About Wasserstein & Co.
Wasserstein & Co., LP is a leading independent private equity and investment firm, focused primarily on leveraged buyout investments and related investment activities. The firm manages capital on behalf of its institutional and individual investors, including public and corporate pension funds, foreign governmental entities, endowments and foundations, and high net worth individuals. The firm historically has made investments in media, consumer products and other industry sectors. Wasserstein & Co. conducts its activities through offices in New York and Los Angeles. For more information, visit www.wasserco.com.

MEDIA CONTACTS:

Angela J. Pierce
Encompass Digital Media, Inc.
+323-344-4565
apierce@encompass-m.com

Trevor Gibbons
Edelman for Court Square
+212-704-8166
Trevor.Gibbons@edelman.com

Stephanie Pillersdorf
Sard Verbinnen & Co. For Wasserstein & Co.
+212-687-8080
sp@sardverb.com