Sovereign Investment Company acquires 20 Pizza Hut Restaurants in Wisconsin

PRINCETON, NJ October 08, 2007

Sovereign Investment Company, one of the largest and fastest growing private equity investors providing sale-leaseback capital, today announced it recently completed a transaction worth $15.3 million for PH Hospitality Group, LLC, the largest Pizza Hut operator in the state of Wisconsin. The company, established in 1998 and based in Wauwatosa, Wis., operates 85 Pizza Hut restaurants as of FYE 2006. Pizza Hut, Inc., based in Dallas, Texas, is the world's largest pizza restaurant company as well as a recognized leader in the pizza category.

Sovereign completed the sale-leaseback transaction for PH Hospitality Group for 20 Pizza Hut restaurant assets/units in the greater Milwaukee, Wis. metropolitan area. The properties will be leased back for periods ranging from 10 to 15 years and are Triple-net (NNN) leases.

"PH Hospitality Group selected Sovereign as its real estate finance partner because of the firm's keen experience and track record with restaurant transactions," said Mark Dillon, president of PH Hospitality Group. "Sovereign's extensive restaurant asset financing experience set Sovereign Investment Company apart from other firms and made it the best choice for a sale-leaseback partner."

"Sovereign was pleased to assist PH Hospitality Group with its substantial sale-leaseback transaction," said Barry Bain, vice president of acquisition, Sovereign Investment Company. "Given the current economic environment of uncertain credit markets, sale-leaseback is becoming the financing of choice for owners and operators looking for capital to grow and re-structure their existing balance sheet."

About Sovereign Investment Company

Sovereign Investment Company empowers owners, operators and developers to capitalize on the value of their real estate through net lease sale-leaseback portfolio transactions. Leveraging the experience of a 30-year investment history, Sovereign invests capital to offer a variety of terms and structures, while providing unparalleled service, pricing and execution for its transaction partners. As one of the largest and fastest-growing private equity investment firms focused on real estate structured finance, Sovereign has provided more than $1 billion in sale-leaseback capital to long-term, net-leased properties nationwide.

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