Eagan, MN, July 21, 2005 - NACR (North American Communications Resource, Inc.) today announced a new phase of its growth plan, entering into an investment agreement with Nautic Partners, LLC that will recapitalize the company and enable NACR to aggressively grow its current business.

The announcement was made by NACR CEO and President Tom Roles, who will continue to lead the company. “This is an exciting time for NACR, Nautic and our valued customers,” said Roles. “We now have the opportunity to take NACR to the next level of competitiveness and grow our business.”

NACR is a privately held Value Added Solutions Provider (VASP). As one of Avaya’s largest BusinessPartners, NACR provides corporations with comprehensive communications systems and support, including Voice over IP (VoIP) and converged network integration, consultative services, ongoing maintenance, and repairs. Nautic Partners is a leading private equity firm based in Providence, Rhode Island with $1.8 billion of equity capital under management.

“The partnership with Nautic will position NACR to meet the explicit demands from our customers to strengthen and deepen our critical relationships” Roles continued. “The infusion of additional capital will enable us to expand our resources more aggressively so that we can provide greater national coverage and be a major player in more technologies.”

For its part, Nautic views the deal as a strategic investment in a highly viable, growing company that is a leader in the industry. For NACR’s end customers, the agreement will ultimately put more NACR resources at their disposal and allow them to take advantage of a broader offer portfolio.

The leadership team at NACR will remain the same, and Roles will remain CEO, President, and the single largest individual shareholder. According to Roles, there will be no change in the culture that is the foundation of the company. “Like NACR, Nautic is a company focused on people — and I know it will fit perfectly with the family that is at the core of NACR,” he said.

Joining the NACR team as Chairman of the board will be John Stuart, who as the former President and CEO of IKON Office Solutions built that business from $250 million in revenue to a $4 billion dollar global company during his tenure. “John will add incredible experience in leading our strategic efforts to meet our evolving customer demands. He will be spearheading investments to leverage our existing customer relationships and better position NACR to expand and compete for incremental value added solutions” Roles stated.

“NACR is a longstanding Avaya BusinessPartner and we are pleased about the agreement with Nautic,” commented Kevin Cook, Avaya vice president, North America. “This will provide NACR with an opportunity to extend the reach and scope of their ability to deliver high value communications solutions for Avaya customers.”

About NACR
NACR is headquartered in Eagan, MN. Launched in 1993 with only five employees, NACR today has more than 370 employees and 55 locations across the country dedicated to designing, implementing, and servicing the Avaya product line. For more information about NACR, call 1-888-321-NACR (6227) or visit online at nacr.com.

About Nautic Partners
Since its founding in 1986, Nautic Partners has made over 90 private equity investments and currently has over 25 active portfolio companies and $1.8 billion under management. Nautic Partners is the independent successor to Fleet Equity Partners, the private equity investment unit of Fleet Financial Group. Nautic targets control investments of between $25 million and $75 million in middle-market companies with proven business models and strong management teams. The firm invests in growth, consolidation, recapitalization, and buyout transactions. Areas of focus include business services, manufacturing, healthcare, and media & communications. Since 1986 the firm has completed 20 investments in the media and communications sectors.

About Avaya
Avaya Inc. (headquartered in Basking Ridge, NJ) designs, builds, and manages communications networks for more than 1 million businesses worldwide, including 90 percent of the FORTUNE® 500. Focused on businesses large to small, Avaya is a world leader in secure and reliable IP telephony systems and communications software applications and services. Driving the convergence of voice and data communications with business applications — and distinguished by comprehensive worldwide services — Avaya helps customers leverage existing and new networks to achieve superior business results. For more information, visit the Avaya Web site at avaya.com.

Redwood Capital Group, a New York based investment bank, served as the exclusive financial advisor in this investment agreement.

NACR Contact:
Scott Sund
1-800-431-1333