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February 25, 2015

Los Angeles, CA – Signature Group Holdings Inc. (“Signature” or the “Company”) has closed the sale of North American Breaker Co., LLC (“NABCO”), to an investor group led by PNC Riverarch Capital, a division of PNC Capital Finance, LLC, for a purchase price of $78.0 million.

Founded in 1996, NABCO operates as a reseller of specialty electrical components, primarily focusing on circuit breakers and other related products. Headquartered in Burbank, CA, NABCO services downstream electrical wholesale markets out of its nine inventory-equipped warehouse locations, enabling next-day delivery throughout the U.S. and Canada. The all cash purchase price provided net proceeds of approximately $56.0 million after repayment of NABCO’s outstanding debt and certain other fees and expenses related to the transaction. Signature intends to use the proceeds to pay a portion of the purchase price of its pending acquisition of the global recycling and specifications alloys business of Aleris Corporation, and for general corporate purposes.

PNC Riverarch Capital is a middle-market private equity group that invests in privately-held North American companies across a variety of industry sectors, including business and industrial services, specialized manufacturing, and value-added distribution. Formed in January 2011, PNC Riverarch Capital is an affiliate of The PNC Financial Services Group, Inc.

Kyle Ross, Signature’s CFO, commented, “We are extremely grateful to FocalPoint for their excellent advice and dedication in getting this deal closed. The team worked tirelessly on our behalf and delivered a positive outcome in a short timeframe.”

“Through a solutions-oriented approach that emphasizes product availability, rapid response time and outstanding customer service, NABCO has built a strong reputation and is well-positioned for continued growth,” said Michael Rost, Managing Director of PNC Riverarch Capital. “We were particularly attracted to NABCO’s strong leadership team, unique value proposition and demonstrated ability to serve the branch networks of leading wholesale distributors throughout North America.”

Nishen Radia, Managing Partner at FocalPoint, added, “We are thrilled to announce the successful sale of NABCO to PNC Riverarch. Having advised NABCO’s previous owners on the initial sale to Signature, our knowledge of the company along with our distribution sector expertise enabled us to drive a strong outcome in a short timeframe. PNC was a pleasure to work with and we congratulate them on acquiring such an outstanding asset.”

Crowell and Moring LLP and Blank Rome LLP acted as legal advisors to Signature. Cohen & Grigsby, P.C. acted as legal advisor to PNC. Senior financing for the transaction was provided by NXT Capital.

About Signature Group Holdings

Signature is a North America-based holding company seeking to invest its capital in large, well-managed and consistently profitable businesses concentrated primarily in the United States industrial and commercial marketplace. Signature has significant capital resources, and federal net operating loss tax carryforwards of more than $900 million. For more information about Signature, visit its corporate website at www.signaturegroupholdings.com.

About FocalPoint Partners

FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings and special situation transactions. With offices in Los Angeles and Chicago, the firm serves middle-market clients throughout the U.S. Since its inception in 2002, FocalPoint has completed approximately $4 billion in transactions.

Please contact Nishen Radia at 310.405.7040 or Mike Del Pero at 310.405.7005 with any questions about this transaction.