"It was the best of times, it was the worse of times, it was the age of wisdom, it was the age of foolishness..." - Charles Dickens

We at Solis Capital Partners hope that this letter finds you in good health and successfully navigating these challenging times. 2009 has been a difficult year for many, and we feel for those families and individuals that are struggling, and for the losses many have suffered.

During this Holiday Season, we thankfully reflect on Solis' 2009 successes, despite the difficult economy, including:

• the sale of Temcor, Inc., generating a 3.3 multiple of invested capital and 125% net IRR to investors;
• the potential positive sale of another portfolio company;
• the winning of major contracts by a third portfolio company expected to roughly double revenue and triple EBITDA; and,
• the receipt of unsolicited inquiries to purchase another portfolio company at values significantly greater than our purchase value.

We attribute these successes to the talent and dedication of our portfolio company management teams, and our steadfast adherence to a few fundamental investment philosophies that hold true regardless of economic or market cycles.

Like many of you, we look to the New Year for opportunity. While we have not found any compelling platform investments in the last 18 months, we strongly believe that new opportunities will become more prevalent as lenders and investors come to terms with decisions they made during the prior robust cycle. Solis plans to raise a committed fund beginning in the New Year to capture some of these opportunities for our investors.

Solis also is growing its team, with a new colleague to be announced shortly. Our just-launched, updated website, www.soliscapital.com, now better communicates our investment philosophies and practices, and the happenings at our firm.

Most importantly, we want to thank all of you that have helped, supported and invested with us. For those in our Solis family, we believe that the "best of times" are just beginning.

Happy Holidays!

Solis Capital Partners