CATALYST EQUITY RESEARCH REPORT Weekly Research Highlighting Activist Investments

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1 Weekly Research Highlighting Activist Investments Subscribe to receive this FREE Report ed weekly.

2 HIGHLIGHTING ACTIVIST INVESTMENTS Week Ending May 20, 2011 SYMBOL COMPANY INVESTOR AEPI AEP Industries Inc. JMB Capital Partners AMIN.OB American International Industries Baker Street Capital BBSI Barrett Business Services Inc. Kimberly Jacobsen Sherertz CCUR Concurrent Computer Corp Skellig Capital Management CEP Constellation Energy Partners Investment Partners Asset Management FFFD North Central Bancshares Inc. PL Capital MRLN Marlin Business Services Corp Red Mountain Capital NLCI Nobel Learning Communities Blesok LLC; Camden Partners OPTI.OB OPTI Inc. S. Muoio & Co (HFS) provides investment research, strategy and stakeholder communications consulting to companies and investors interested in, or involved with, shareholder activist campaigns. Since 2001 HFS has become the trusted advisor to numerous institutional investors, CEOs and board members worldwide. HFS also administers The Official Activist Investing Blog, the definitive source for activist shareholder information. Catalyst Investment Research is a portfolio of activist investing research products that combine company-specific shareholder activism research with deep value investment analysis and access to industry insiders. PORTFOLIO OF ACTIVIST INVESTING RESEARCH INCLUDES: Daily Alerts Weekly Summary of Activist Investments Quarterly Buying Analysis of Top 50 Activist Investors Company-Specific Shareholder Activism Analysis (combining shareholder activism & deep value company analysis) Special Reports on Activist Investing 400+ Page Shareholder Activism Report & Regularly Updated Shareholder Activism Resource Portal To Learn More: Download a brochure Page 2 of 9

3 AEP Industries (AEPI) Activist Investor: JMB Capital Partners Shares 613,797 Catalyst: % Outstanding 10.0% On May 16 JMB Capital announced they would support a going-private transaction in order to maximize Not Avail shareholder value. Share Price M 180M 381M Net Cash -202M 47M 52 wk. range EV/ 8.1 We previously covered AEPI in our May ; September 3, August 13, July 30 and February 19, 2010; November 13, 2009; December 12, 2008; and May 11 and March 14, 2007 Catalyst Research Reports, highlighting Third Point Capital s public demand in 2007 that AEPI commence a tender offer to repurchase 2M shares at $36/share. KSA Capital (15.1%) began purchasing a substantial portion of their ownership in AEPI between October and December In a letter to the Company (dated Nov ) KSA Capital suggested AEPI could reach $110 per share if strategic alternatives were pursued to unlock shareholder value. On February AEPI entered into a settlement agreement with KSA agreeing to expand the board from 9 to 10 and appoint 1 individual from KSA. On August AEP and KSA entered into an agreement whereby AEP agreed to purchase 400,476 (approx. 6%) of its stock from KSA for $27.26 per share (KSA now owns 15%). As part of this share purchase agreement, KSA s representative resigned from AEP s board. On September 1 JMB Capital (9.51% shareholder; Jon Brooks from JMB is the former head trader at Cerberus Capital to 2000) changed their filing status with AEPI from passive investor to active investor. On May 12 a representative from KSA spoke with the CFO from AEPI and raised the possibility of working together to pursue a going-private transaction. American International Industries Inc. (AMIN.OB) Activist Investor: Baker Street Capital Shares % Outstanding 919, % 0.58 Catalyst: On May 16 Baker Street disclosed a 7.4% active ownership stake in AMIN. We previously covered AMIN in our February 4 Catalyst Research Report, highlighting Echo Lake s 6.4% active ownership position. Share Price M 7M 9M Net Cash -3M -3M 52 wk. range EV/ Negative On February 18, 2011 we reported that Echo Lake had increased their ownership in AMIN from 6.4% to 7.7% at an average total cost of 0.78/share. Legal counsel to Baker Street Capital Continue to Next Page Page 3 of 9

4 Barrett Business Services Inc. (BBSI) Activist Investor: Kimberly Jacobsen Sherertz Shares 2,698,428 Catalyst: % Outstanding 26.2% On May 16 Kimberly Sherertz met with BBSI to discuss ways to increase shareholder value, including Not Avail expanding the board from six to nine members and adding Ms. Sherertz as a director. Share Price M 159M 96M Net Cash 62M 9M 52 wk. range EV/ 10.8 Concurrent Computer Corp. (CCUR) Activist Investor: Skellig Capital Management Shares 549,965 Catalyst: % Outstanding 5.96% On May 16 Skellig submitted a shareholder proposal to CCUR requesting they undergo a Dutch Auction Not Avail Tender Offer to repurchase up to $7.5 million of common stock. Share Price M 56M 27M Net Cash 29M 4M 52 wk. range EV/ 6.9 We previously covered CCUR in our February 25, 2011 and October 1, 2010 Catalyst Research Reports, highlgihgting Skellig Capital s September 28 letter announcing a 5.06% active ownership position and disclosing a letter sent to the Company on July 28, 2010 requesting a significant share buyback. In the letter, Skellig suggests the Company use $5M to $7.5M to repurchase shares at a specified price rather than execute a large acquisition which, Skellig states, would introduce new business risk when the successful execution of Concurrent s new product cycle should be of paramount importance. Skellig also disclosed they met with management of CCUR on September 9 to continue this discussion. On February 22 Skellig sent a letter to CCUR stating that the best option to produce a significant long-term return on investment for Concurrent's shareholders is for the Company to repurchase shares of its own stock via a tender offer [at a price between $6.60 and 6.90 per share]. Legal counsel to Skellig Capital Continue to Next Page Page 4 of 9

5 Constellation Energy Partners LLC (CEP) Activist Investor: Investment Partners Asset Management Shares 327,000 Catalyst: % Outstanding 1.3% On May 18 Investment Partners Asset Management submitted a shareholder proposal to CEP requesting Not Avail shareholders vote to demand that the Company resume paying quarterly cash distributions. Share Price M 55M 205M Net Cash -150M 319M 52 wk. range EV/ 0.64 The shareholder proposal can be viewed here: North Central Bancshares Inc. (FFFD) Activist Investor: PL Capital Shares 113,039 Catalyst: % Outstanding 8.3% On May 17 PL Capital disclosed they have asked the management of FFFD what their operating and strategic plans are for: (1) managing credit risk, (2) repaying the capital raised through the U.S. Treasury s previously announced Troubled Asset Relief Program (TARP) without diluting current shareholders, and (3) maximizing the value of the Common Stock, including investigating the potential sale of the Company as an alternative to doing a dilutive capital raise to repay TARP. Share Price M 23M 45M Net Cash -22M N/A 52 wk. range EV/ N/A Marlin Business Services Corp. (MRLN) Activist Investor: Red Mountain Capital Shares 1,259,902 Catalyst: % Outstanding 9.7% Red Mountain increased their ownership in MRLN by 200,000 shares on May 16 for $12.40/share. Not Avail A representative from Red Mountain joined the board of MRLN in May Share Price M 148M 293M Net Cash 138M N/A 52 wk. range EV/ N/A Page 5 of 9

6 Nobel Learning Communities (NLCI) Activist Investor: Blesbok LLC; Camden Partners Shares % Outstanding 5,625, % Not Avail Catalyst: On May 18 NLCI announced an agreement with Leeds Equity Partners to be acquired for $11.75/share in cash. On the same day Blesbok and Camden, who together own 53% of NLCI, entered into a voting agreement with the company to sell their shares for $ Share Price M 122M 144M Net Cash -22M 16M 52 wk. range EV/ 9.0 We previously covered NLCI in our July 3, March ; September 26, July 25 and July Catalyst Research Reports, highlighting activist investor Wynnefield Capital s (12.5%) request that the Company implement a poison pill provision with a 30% trigger (presumably in order to prevent a creeping takeover by Blesbok, who owns 37%). On March 10 Knowledge Learning Corporation (a business controlled by Blesbok Inc an investment vehicle run by the former junk bond trader Michael Milken, and his brother Lowell Milken) offered to purchase NLCI for $13.50 per share. (KLC originally offered to purchase NLCI for $17.00/share on September 22, 2008) On March 11 NLCI stated they were disappointed by the offer price. We also reported in July 2009 that Discovery Capital had been steadily increasing their ownership in NLCI since early May. At that time they owned 6.3% at $11.86/share. On September 11, 2009 we issued an in-depth research report on NLCI. For a complimentary copy of this report please contact dpark@hedgerelations.com Opti Inc. (OPTI.OB) Activist Investor: S. Muoio & Co Shares % Outstanding 3,290, % Not Avail Catalyst: On May 13, 2011 S. Muoio sent a letter to the board of OPTI demanding that the Company clarify the inaccuracies Muoio says the Company made in their proxy statement regarding the nomination of director candidates and the use of cumulative voting. Share Price M 23M 2M Net Cash 21M 44M 52 wk. range EV/ 0.04 We previously covered OPTI in our May 7, 2010 Catalyst Research report, highlighting Muoio Co s announcement that they were considering proposing an individual for election to the board. Page 6 of 9

7 CONTACT INFORMATION: Hedge Fund Solutions, LLC Damien J. Park Tel FREE Subscription to the weekly report: or The Catalyst Equity Research Report is a general circulation weekly. Hedge Fund Solutions and/or its affiliates (the Firm ) may have a consulting relationship with the companies featured in this report (the Companies ). The Firm may also actively trade in the securities of the Companies for its own account. At any time, the Firm, funds it manages and/or its employees or their family members may have a long or short position in registered or non-registered securities or in options on any such security of any company mentioned in this report. The information contained in this report is not a complete analysis of every material fact with respect to the company, industry, or security and is not an offer or solicitation to buy or sell any security. Although opinions and estimates expressed in this report reflect the current judgment of the Firm, the information upon which such opinions and estimates are based is not necessarily updated on a regular basis. In addition, opinions are subject to change without notice. The Firm from time to time may perform consulting services for companies mentioned in this report and may occasionally possess material, nonpublic information regarding such companies. This information is not used in the preparation of this report. Facts and other information contained in this report have been obtained from the public sources considered reliable but are not guaranteed in any way. Hedge Fund Solutions Portfolio of Activist Investing Products Catalyst Investment Research Daily: Alerts Weekly: Catalyst Equity Research Report Quarterly Buying Analysis Top 50 Activist Investors Specific Activist Target Catalyst Investment Research Special Reports Shareholder Activism Report & Resource Portal Download a Brochure Page 7 of 9

8 PLATINUM SPONSORS Legal Advisers Olshan Grundman Frome Rosenzweig & Wolosky LLP is a law firm dedicated to providing personal service tailored to the specific requirements and concerns of the firm s clients. Olshan is widely recognized as a preeminent law firm in the activist strategy area, and represents experienced activist investors, funds new to the activist area, as well as other investment and hedge funds. Olshan has extensive experience advising clients in a wide range of activist strategies, from private negotiations with management to public, high profile proxy contests, including expertly and efficiently handling litigation relating to activist matters. We also specialize in mergers and acquisitions and hostile takeovers, with extensive expertise in these matters. Olshan s highly regarded attorneys provide a full range of legal services and are uniquely positioned to provide expert advice regarding the complicated and nuanced legal issues facing activist investors today. Steve Wolosky, Partner swolosky@olshanlaw.com Tel: Schulte Roth and Zabel LLP, one of the leading law firms in the activist investing area, has been involved in some of the highest-profile campaigns facing the business world in recent years. Serving both activist-only and occasional activists, the firm advises on federal securities law, state corporate law, Hart-Scott-Rodino, proxy rules and related matters, as well as handling investigations and litigations arising out of clients' activist activity. The firm, with over 450 lawyers in offices in New York, Washington, D.C., and London, has a long history of serving private equity and hedge fund clients. Marc Weingarten, Partner marc.weingarten@srz.com Tel: Page 8 of 9

9 PLATINUM SPONSORS Proxy Advisors Alliance Advisors LLC is a multi-faceted shareholder communications firm specializing in proxy solicitation, corporate governance consulting, and information agent services. Our in-depth view of the investor communities and governance environment allows us to prepare for successful outcomes. Alliance Advisors fight team has built a distinguished reputation by successfully completing countless contested assignments. The team will complete a comprehensive analysis of the shareholder base and build a calculated battle plan accordingly. We will assist in the crafting and delivery of your message to the target audience, ensuring the message is heard and understood. Alliance Advisors consistently delivers successful outcomes to our clients. Peter Casey, Executive Vice President pcasey@allianceadvisorsllc.com Tel: Georgeson Inc. is the world s leading provider of strategic proxy and corporate governance advisory services to corporations and shareholder groups working to influence corporate strategy. For over half a century, Georgeson has specialized in complex solicitations such as hostile and friendly acquisitions, proxy contests and takeover defenses. For eight consecutive years, Georgeson has been ranked the No. 1 proxy solicitor for M&A transactions in the US. Georgeson s experts include former corporate secretaries who have worked toward successful outcomes with activist investors, former directors of US research at RiskMetrics, M&A attorneys, and the most experienced proxy solicitation team in the industry. Rachel Posner, Senior Managing Director and General Counsel rposner@georgeson.com Tel: Innisfree M&A Incorporated is a full service proxy solicitation/investor relations firm providing clients with sound tactical and strategic advice and results-oriented implementation in proxy and consent solicitations (whether friendly or contested), tender and exchange offers, mergers, rights offerings, strategic restructurings and other domestic and cross-border transactions requiring action by public security-holders. We provide expert consulting services on a wide range of matters, including executive compensation proposals, corporate governance issues and investor relations. Innisfree s reputation derives from our success in complex and/or contested situations. Key to that success is our ability to track, identify and understand the shifting dynamics of a company s security-holder base and provide battle-tested advice based on that information. We are convinced, and our unrivaled record demonstrates, that this refined, analytical based approach enables us to deliver the extraordinary results our clients expect. Arthur Crozier, Co-Chairman acrozier@innisfreema.com Tel: MacKenzie Partners, Inc. is a full-service proxy solicitation, investor relations and corporate governance consulting firm specializing in mergers-and-acquisitions related transactions. The firm has offices in New York City, Los Angeles, Palo Alto and London. MacKenzie's services include corporate governance consulting, security holder solicitations, information agent services for tender and exchange offers, beneficial ownership identification, market surveillance and associated financial, investor and media relations services. We work in close partnership with our client's attorneys, investment bankers and other consultants, providing advice and counsel at each stage of the transaction. Mark Harnett, President mharnett@mackenziepartners.com Tel: Page 9 of 9