Spitzer Industries Announces Acquisition of Advanced Inspection Technologies

February 16, 2011

Spitzer Industries, Inc. (“Spitzer”) today announced the completion of its acquisition of Advanced Inspection Technologies (“AIT”), a company based in Houston. AIT specializes in performing advanced Nondestructive Testing (NDT) of welds and base materials, using phased array ultrasonic testing and computed radiography. The acquisition also furthers Spitzer’s world class fabrication capabilities with deeper welding engineering and technology capabilities.

AIT was founded in March of 2003 by Michael Beard and Jim Halley with the primary focus of developing Automated Ultrasonic Testing (AUT) equipment and procedures necessary to compete for contracts within the nuclear, power and energy sectors. AIT serves a broad customer base within these sectors as well as the petrochemical, refining, aerospace and offshore oil and gas industries. AIT performs inspections using automated, semi-automated and manual systems and techniques using phased array ultrasonic testing of welds, vessels and forgings. AIT also performs conventional forms of NDT which include film Radiography (RT), Positive Material Identification (PMI), Remote Visual Inspection (RVI), Magnetic Particle Testing (MT), Penetrant Testing (PT) and Hardness testing. AIT also provides welding engineering services such as welding program development, weld procedure development and qualification, and project management.

“We at Spitzer are excited to have AIT as part of our team and look forward to taking our combined talents to current and potential customers,” said Cullen Spitzer, chief executive officer of Spitzer. “We have been working diligently over the past months trying to strengthen our capabilities with respect to welding technology and welding engineering. With the acquisition of AIT, we now have a more complete portfolio of services to offer our customers and look forward to providing expanded product lines, state of the art technology, engineering and NDE services to our clients.”

“From AIT’s perspective, we are pleased to expand the advanced NDT services that we provide into Spitzer’s fabrication facilities,” said Jim Halley, co-founder of AIT. “It’s a perfect fit – world class fabrication and advanced NDT. Incorporating advanced NDT into fabrication as a means of process control, helps to ensure that the specialized equipment manufactured by Spitzer will perform as expected in some of the most challenging environments in the world. We are excited to be part of the Spitzer team and look forward to helping Spitzer to continue setting themselves apart from their competitors.”

“I am excited about returning to fabrication and working with Cullen and the team at Spitzer,” said Michael Beard, co-founder of AIT. “Integrating the services AIT has been known for into Spitzer’s manufacturing facilities will give us a competitive advantage by offering state of the art services that no other fabricator in the industry can offer. With my experience and background in welding engineering and welding technology, I will be working with the Spitzer team to expand our services in NDE and fabrication in support of critical fabrications for offshore oil and gas and the nuclear industry.”

ABOUT SPITZER INDUSTRIES, INC.

Spitzer is a custom fabricator and packager of equipment and systems, specializing in engineered process and production skid packages, ASME pressure vessels, and other custom weldments. Spitzer specializes in engineered process and production skid packages, ASME VIII, Div. 1 and Div. 2 Pressure Vessels [“U” & “R” Stamps], and specialty structural weldments. Spitzer Industries has the in-house capabilities to provide engineering, design, drafting, quality control and procurement to accommodate any project from start to finish.

ABOUT ADVANCED INSPECTION TECHNOLOGIES

AIT, located in Houston, Texas, is the market leader in the inspection of welds and forgings using automated ultrasonic phased array testing. AIT specializes in performing advanced Nondestructive Testing (NDT) such as PA-AUIT, PA-AUT/TOFD, and AUT. AIT also performs conventional forms of NDT such as PA-MUT, MUT, CR, RT, PT, MT, hardness testing and PMI. In addition, AIT performs engineering services such as welding program development, weld procedure development and qualification, project management, project surveillance, manufacturing of flawed specimens, and expert witness testimony.

ABOUT THE STEPHENS GROUP, LLC

The Stephens Group through its affiliates is a majority owner of Spitzer Industries, Inc. This private, family-owned firm invests its capital in private companies with exceptional management teams and high returns on invested capital in growing industries. The principals of The Stephens Group have over 70 years of history in successfully investing in both minority and control positions across multiple industries. The Stephens Group, through its affiliates, has large positions in energy services, gas exploration and production, media, communications, consumer, manufacturing and other industries. The Stephens Group typically provides equity capital of $10 million to $75 million dollars per transaction.