Chicago, Illinois, February 28, 2003 - Giftco, Inc. ("Giftco") issued $9.0 million of subordinated notes to Midwest Mezzanine Fund III ("Midwest Mezzanine Funds"). Founded in 1975, Giftco, headquartered in Vernon Hills, Illinois, is the leading designer, importer, and supplier of gift items and specialty products, which are used by fundraising concerns such as schools. Giftco also supplies a line of prizes that are utilized as incentives by fundraisers, and a line of products, which are used for in-school retail stores.

Midwest Mezzanine Funds is a leading provider of junior capital to established privately owned middle-market companies located throughout the United States and Canada. Midwest Mezzanine Funds invests junior capital with private equity funds and established management teams. Since 1993, Midwest Mezzanine Funds has invested in 38 companies, with investments ranging from $1.5 million to $10.5 million.

Duff & Phelps, LLC, a Chicago-based investment banking and financial advisory firm, arranged for the private placement of securities, assisted in negotiations, and served as the exclusive financial advisor to Giftco.