As we reflect on 2008, we feel fortunate that our strategy of investing
in middle market growth businesses using conservative capital structures has provided us with shelter from the economic storm. Our prudent strategy has …

• enabled us to make two new investments in just the past six months;
• allowed our portfolio companies to focus on long term value creation strategies notwithstanding difficult macroeconomic conditions; and
• given us the capital availability to actively seek additional well-managed middle market growth businesses with which to partner.

Let us update you on a few highlights of the past year. First, we would like to introduce the class of 2008 “inductees” into the RLH family of growth businesses:

• Creative Circle − a specialized staffing agency providing advertising, marketing, graphic communication, and interactive professionals for temporary and full time positions. The Company currently lists many of the top advertising agencies, design firms, and corporations in New York, Los Angeles, Chicago, San Francisco, Seattle, and Dallas as clients. Using proprietary workflow systems, the Company’s recruiters and account executives match exceptional independent professionals with the needs of corporate customers who are seeking to keep pace with the digital media revolution. RLH partnered with Creative Circle’s founders to recapitalize the Company and develop a foundation for continued strong growth.

• The Apothecary Shops − a specialty pharmacy which offers sophisticated drugs to patients and physicians. The Company focuses on providing medicines that require complex preparation, handling, patient support, and billing. Based in Phoenix, The Apothecary Shops provides superior service and patient education through 14 retail pharmacy locations (primarily in the Western US) and a centralized mail order pharmacy. The Company distributes and, in some cases, compounds drugs that treat a variety of diseases and conditions, including HIV, infertility, and cancer. RLH joined with the Company’s CEO/founder and management team to recapitalize the business.

Second, we are pleased to note that despite the challenging economy, we completed a successful liquidity event in the fourth quarter for our portfolio company, Bradshaw International. We are very appreciative of the pportunity to have been partners with the founders and executive team of Bradshaw.

Looking ahead to 2009, we will continue to pursue the strategy of high growth and modest leverage that has been the centerpiece of our investment efforts for over 25 years. We believe that the merits of such an approach are especially evident today.

We hope you will think of us when you become aware of unique high growth businesses that are seeking an equity capital partner dedicated to building value. We look forward to speaking with you in the near future.

On behalf of the entire RLH team, best wishes for a successful year ahead.

J. Christopher Lewis